Please enter CoinGecko Free Api Key to get this plugin works.
VIEW ALL
Please enter CoinGecko Free Api Key to get this plugin works.
VIEW ALL

Coronavirus damage isn’t priced into the markets… including cryptos

Coronavirus
China is underreporting the severity of the coronavirus, and the media is eating it up... but the damage is far from over.
Coronavirus
Frank Curzio
By Frank Curzio Founder and CEO of Curzio Research

It’s safe to say the average crypto investor anticipates a certain amount of volatility in their crypto investments… and that’s without the pressure of a coronavirus epidemic.

Much of this volatility is due to investors buying/liquidating large positions, or questions over value vs. the dollar and other currencies… the price of bitcoin alone can (and does) yo-yo hundreds of dollars up and down in just a few short hours. 

But what happens when these already volatile markets are infected with even more uncertainty in the form—and scale—of a global, viral epidemic like the coronavirus?

So far, there’s been no clear reaction to the virus in the crypto markets. Bitcoin is hovering near $10,000 per coin, while the rest of the market is selling off. But “business as usual” volatility in the crypto markets doesn’t mean you should dump your cash into cryptos or tokens as a form of virus defense.

Although they’re not tied to any central government or currency, “decentralized” doesn’t mean cryptos are completely removed from global events like a virus outbreak… especially when it comes to China and Asia.

Asian crypto markets, miners, and even conferences, have been canceled, closed, or scaled back in just the last few weeks… including five Chinese crypto mining entities that account for roughly 50% of global bitcoin computing power, as reported by Bloomberg

Another 20 Asian exchanges that accounted for 40% of 2019 bitcoin traffic are also affected… and most are within China.

And those stories are only the beginning… The scale of the virus continues to expand, the bad news from notoriously secretive China is trickling in, and things aren’t getting better.

(If you think I’m exaggerating, the Bloomberg story I mentioned above came out February 9, 2020… one day after virus-shuttered businesses in China were scheduled to reopen. These businesses are still closed today, more than two weeks later.)

As I’ve been telling my readers, this is not just another flu outbreak… the coronavirus is not priced into global markets, and cryptos are no exception. Here’s why…

The Chinese government is underreporting the severity of the outbreak, and the media and talking heads are eating it up… They think once the virus is contained, any lost profits will quickly recover.

That’s not happening. 

If you’ve been following my work over the years, you know I’m quick to call B.S. on most crazy market calls.

I told you to ignore the insane permabears calling for a 50%-plus market crash over the past eight years… I told you to ignore every negative story about the U.S.-China trade war… And if you’ve been following my advice, you should be doing well. 

I’m not highlighting these calls to be arrogant.

I spent tons of hours researching these subjects… analyzing hundreds of reports… and talking to industry experts. At the end of the day, my research isn’t based on stubbornness or emotions. It’s based on data and a lot of hard work.

Right now, my research shows that if coronavirus conditions continue to worsen as they have been… most of the world will fall into recession by the end of this year.

The crypto market is unlikely to hold up under the onslaught, but it may give us a chance to scoop up some of the best cryptos at cheap prices. Stay tuned…

Frank Curzio
Frank Curzio, founder and CEO of Curzio Research, is one of America’s most respected stock experts. His research is regularly featured on media outlets like CNBC’s Kudlow Report, The Call, CNN Radio, ABC News, and Fox Business News. His weekly Wall Street Unplugged podcast—ranked the No. 1 “most listened-to” financial podcast on iTunes—has been downloaded over 12 million times.

P.S. Last week, I released a special report containing all of the details I uncovered in my coronavirus research.

It includes some names and sectors to avoid… the frightening virus data China is trying to keep secret… plus two ways to protect your portfolio and profit as the market struggles to recover… (These names are already turning a profit in the face of global virus uncertainty.)

You can access this coronavirus special report—including two actionable ways to protect your portfolio and profit as the coronavirus wreaks havoc on the global economy—with a risk-free $49 subscription to Curzio Research Advisory.

Frank Curzio
Frank Curzio, founder and CEO of Curzio Research, is one of America’s most respected stock experts. His research is regularly featured on media outlets like CNBC’s Kudlow Report, The Call, CNN Radio, ABC News, and Fox Business News. His weekly Wall Street Unplugged podcast—ranked the No. 1 “most listened-to” financial podcast on iTunes—has been downloaded over 12 million times.
FREE REPORT

This Quiet Tech Revolution Could 100x Your Money

  • How investors are seeing 100x+ gains on a rapidly-developing tech opportunity
  • Everything you need to know to potentially secure a small fortune from this opportunity

More from Curzio Crypto

The relationship between crypto and NFT’s

The worlds of cryptocurrencies and NFTs (Non-Fungible Tokens) have grown more and more in recent years. Although relatively new and difficult ideas, crypto and NFTs have key features in common that allow them to work well together.
FOLLOW US