How will the new coronavirus mutation affect the crypto market?

Increasingly, news from various countries began to appear that a new strain of coronavirus had been discovered. Denmark was the first such country. Following her, similar messages came from the UK, and after that new mutations were discovered in Australia and the Netherlands.

Naturally, the market immediately reacted to this news with a drop. So, for example, the S & P500 index sank 1.5%, while Bitcoin by an impressive 9%.

However, we already observed such a situation at the beginning of the pandemic. However, unlike stock indices, cryptocurrencies recovered very quickly, subsequently showing rapid growth.

Like last time, investors see the new mutation of the coronavirus as another big threat to the global economy.

In addition, the behavior of the governments of the most economically developed countries of the world also influences this. As long as the economies of countries such as the United States, Germany, Great Britain, France, the Netherlands, and others are subject to the negative impact of quarantine measures and lockdowns, significant economic growth cannot be expected.

How can this affect cryptocurrencies?

If the information from the UK government is correct and the new strain of the virus does indeed spread 70% faster, then countries will have to tighten quarantine measures.

As we noted above, this can have a positive effect on cryptocurrencies. In times of falling markets, investors often withdraw capital and look for alternatives. Today, such an alternative is crypto assets.

Most likely, there will be a slight correction against the background of general panic, and then there will be rapid growth.

There is also an alternative opinion. Against the background of the fact that the population will need capital, which some have stored in cryptocurrencies, massive withdrawals of assets from the market may begin, if we are talking about ordinary investors and not big whales. Due to the withdrawal of capital, assets can seriously fall in value.

Thus, the behavior of the market depends only on the quarantine measures that the governments of the countries will take. If the quarantine measures are tough, then most likely, the market can expect a fall followed by recovery and growth. One way or another, cryptocurrencies have already established themselves as an excellent "protective asset", therefore, even strict quarantine measures will again benefit the crypto market, because more and more people are switching to this type of investment.

And you can buy cryptocurrencies at the best prices using the Cryptology exchange.