Coronavirus and bitcoin: How the financial woes affect cryptocurrencies

The cryptocurrency segment was hit by the impacts of the oil crash and the coronavirus crisis on stock exchanges and on financial markets across the world, although the exact correlation of the events is difficult to measure.

“This whole crisis affects virtually all assets, even those considered safe. The same goes for cryptocurrencies, which have depreciated in recent weeks,” Daniel Coquieri, COO of BitcoinTrade, a Brazilian broker specializing in cryptocurrencies, told BNamericas. “However, it’s difficult to know exactly how much can be attributed to the contagion.” 

After having reached their peak two to three years ago with over-speculation of assets that pushed prices past US$20,000 for bitcoin, the prices of cryptocurrencies dropped to more rational levels. Since the beginning of the year, there was a new, albeit lighter, appreciation.

The digital currency started March with an increase of as much as 20%, according to BitcoinTrade, but tides eventually…