Bitcoin markets have reacted with increased volatility to the news of the spreading coronavirus in China. The last few days may reveal patterns about BTC trading in relation to risk.
Bitcoin Shows New Trading Patterns on Risk Events
Bitcoin (BTC) showed behavior that may reveal new patterns of trading in relation to stocks. The coronavirus epidemic and subsequent lockdowns in China, coinciding with the Chinese New Year celebrations, caused a slump in Chinese and international stocks.
But Bitcoin prices showed a different pattern in relation to the movements of stocks, with waves of activity both coinciding with the overall slide in assets, but also rallies that suggest BTC is also a risk-averse asset.
1/ Bitcoin vs the Coronavirus
A look at reaction times and correlations to explore if bitcoin may be trading like a risk-on asset…
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