How could you say that this is really the reason why Bitcoin declined 3%? Yes it's possible but we cannot be so sure about that. Corona virus has been an issue here when this virus start spreading. And I still can't think of it as a major effect of Bitcoin price. It does affect the economy of a country affected but not totally Bitcoin. There's a possibility that it affects Bitcoin but not totally a major cause of Bitcoin decline. For sure there's another reason aside from Corona virus.
I think a lot of people in that country are panicked because the corona virus is spreading quickly and this virus can make people die so it's natural that many people panic and choose to secure their assets by selling their coins and exchanging them for local currencies and making withdrawals.
imagine if this virus spreads in your city I think you will do something similar because if you die and your assets are still in the form of cryptocurrency maybe your family does not understand how to withdraw assets into local currency.