Bitcoin (BTC) is now turning the ongoing coronavirus disaster into a cause for gains — the cryptocurrency is up 80% in just one week.
As the effects of the pandemic on traditional markets intensify, Bitcoin has appeared to U-turn on its bearish stance.
Pal: “Entire system” at risk of loss
Data from Coin360 and Cointelegraph Markets showed BTC/USD climbing as high as $6,650 on March 20 — 24-hour gains of over 20%. Versus last week’s lows of around $3,700, the pair has appreciated 79.5%.
Bitcoin price 7-day chart. Source: Coin360
While Bitcoin’s reaction to coronavirus has constantly delivered surprises, analysts are now focusing more on the deadly impact of the associated health crisis on the world’s financial system.
As the cryptocurrency recovered its losses, the mood among market participants likewise became one of solidarity.
“I can not express how bullish I am on bitcoin,” Raoul Pal, founder and CEO of Global Macro Investor, tweeted on Thursday.
“We are at risk of losing the entire system right now. I know they will find a way to save it but all trust is lost.”
Pal added that gold investors would also be shielded from that lack of trust, albeit with smaller potential upside than for Bitcoiners.
A $2T corporate debt “disaster”
Misgivings extend to stock market figures themselves. Kelly Loeffler, the CEO of Bakkt and now a United States senator, reportedly sold up to $3.1 million of stocks in the weeks after attending a closed-door briefing on coronavirus in January.
Most of all, however, it is markets’ weak response to the unprecedented levels of financial stimulus which is intensely worrying commentators.
“These are truly extraordinary times and it’s quite sobering,” Angus Coote, co-founder of Australian fund manager Jamieson Coote Bonds, told mainstream media on Friday.
“I’ve been in the business for 25 years and this makes the GFC [global financial crisis] look like child’s play.”
Particularly in focus is corporate debt, with $2 trillion set for “rolling over” this year effectively siloed due to coronavirus.
“It’s a disaster,” Coote added.
