The U.S., like much of the world, has closed most non-essential businesses and ordered citizens to stay at home in an attempt to combat the spread of COVID-19. When the time comes for United States governing bodies to reopen the country, the Bitcoin (BTC) price could be impacted.
“Once U.S. businesses open up, the key to watch for BTC is how the broader equities market reacts, as Bitcoin has been correlated with them recently,” Twitter crypto trader BigCheds told CryptoNewspeople in a direct message on April 15.
“Bitcoin will continue to trade within its own broader channel, but we must keep in mind correlation to equities as of late,” BigCheds added, referring to Bitcoin’s ranging price action against its general relation to traditional market activity.
President Trump evaluates reopening the country
“The plans to reopen the country are close to being finalized,” President Trump said in a recent speech, reported by FoxNews on April 15. “The day will be very close,” Trump added, noting states’ varying conditions and pointing toward a potential reopening date prior to May 1.
Crypto trader and influencer, CryptoWendyO, said she does not foresee an immediate economic recovery after businesses reopen. She also does not see folks heading straight back into the work flow.
“It will be a waiting game as small and large businesses alike analyze the current market and decide how they plan to resume business,” she told CryptoNewspeople in an April 15 email. “This is also contingent on local U.S. and national laws as they must operate in accordance.”
Bitcoin could rely on jobs and incomes
CryptoWendyO said Bitcoin’s path forward depends on worldwide economic conditions when businesses reopen. “I feel that many people are distrusting their governments and banks, thus causing them to explore Bitcoin,” she said, adding:
“However, if people do not have income, jobs and we enter another recession similar to 2008 Bitcoin price may remain at current values as there must be buyers to create demand.”
As an asset formed after the 2008 financial crisis, Bitcoin is in somewhat uncharted waters. At times, the asset’s price has moved independently of traditional markets, while other times it has seen correlation. Only time will tell what the future holds as Bitcoin looks toward its 2020 halving, which is likely to occur in less than one month’s time.