In the past, the bitcoin market did not have a correlation to economic weakness and government policies because the determination of the price of bitcoin and other crypto-assets was only affected by supply and demand but the corona pandemic had an indirect effect on bitcoin and other crypto-assets. That is because of the selling action of a group of people who need cash to shop and save their businesses in the real sector due to the impact of the corona pandemic.

Increased attention of institutional and conventional investors in cryptocurrency has increased sentiment correlation with conventional assets. The few days that bitcoins are safe haven and have a high level of resilience to global sentiment seems to be diminishing.

The decline in the price of bitcoin is detrimental to many investors but the momentum is also used by many people to start investing in bitcoin (because the price is going down) so that it encourages large demand.