Fear surrounding the lethal Coronavirus (COVID-19) has plagued the global markets, sending shockwaves across multiple asset classes that has led commodities, crypto, and equities to all post sizeable losses over the past several weeks.
New data from a prominent analytics firm elucidates an interesting trend when it comes to the correlation between the crypto market and discussion rates regarding COVID-19, with the inverse correlation between the two is a bearish sign for Bitcoin and other cryptocurrencies.
Despite this, one top analyst is noting that he believes the chaos caused by the virus will ultimately be bullish for the crypto market, as digital assets will provide investors with a way to escape the problems associated with the traditional financial system.
Crypto market performance inversely correlated with discussions surrounding Coronavirus
This intense downtrend has come about in tandem with that seen by the global equities markets, which has posted some of its largest losses seen since the 2008 financial crisis over the past couple of weeks.
It is unclear as to whether or not the crypto market’s poor performance is directly correlated with that of the U.S. stock market, but it is clear that the Coronavirus is the primary suspect behind this turbulence.
Recent data from blockchain analytics firm Santiment elucidates an inverse correlation between the crypto market’s performance and mentions of the Coronavirus on multiple social platforms – including Reddit, Telegram, Discord, and others.
“We brought up last week that our Emerging Trends platform is showing that there is a continued inverse correlation between the discussion rates of Coronavirus and COVID19,