Most people thought that after the virus outbreak, money would go into Bitcoins and other cryptocurrencies as Bitcoin is considered to be the only ‘’safe-haven’’ asset at the time of crisis. But Bitcoin collapsed by 15% after the virus outbreak, thereby defying people’s expectations.
However, it is to be remembered that the value of Bitcoin is driven by demand and not on factors like interest rates and GDP than other fiat currencies depend on. Therefore, the prices of Bitcoin though showing volatility is most of the time, still remain steady when other markets fall.
I think the real effects of the COVID 19 virus in the cryptocurrency was still not yet happening since because of the lockdown a lot of business was not operating and I think after a few months that is the times we are going to experience the effects of the virus in the cryptocurrency, Also I think even at any moment or not as safe-haven I think bitcoin was still the safest cryptocurrency where you could invest your money with. Since it is the top cryptocurrency around the world for sure the demand of bitcoin here is surely not going to go down or reach zero easily.