Trending Bitcoin News and Market Sentiment January 27th, 2020: Crypto Community Rallies Behind Coronavirus Campaign,

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  • Bitcoin makes a break for a new daily high so far of USD 8,684 on Monday trading
  • Despite earlier fears that China’s coronavirus outbreak could impact crypto prices temporarily, signs have yet to show in a healthy market of trading today
  • Several charity campaigns supporting the China coronavirus health campaign is being funded by crypto companies

 

Sunday has been kind to Bitcoin but Monday looks like it will be even better, with Bitcoin bulls gaining some unexpected momentum today to push on to a new daily high right now of USD 8,684 (CoinDesk), with a much higher low of USD 8,375.

Asian traders will be taking credit for this new impetus, against a backdrop of China uncertainty in the Lunar New Year with coronavirus fears prevailing, so those who would have thought this should have a knock on effect on crypto markets will wonder what pushed prices up today.

CEO of non-custodial crypto lender DeFiner had told CoinDesk that he canceled scores of meeting in China with crypto clients due to the outbreak. He said:

“We planned a 10-city tour to talk with potential clients in China. Nobody wants to attend any crypto-related conferences or any meetings at all because of the virus, we have to rearrange everything.”

Someone forgot to send buyers the memo today, though as prices have not reacted anything like what was expected. Chainalysis says that 40% of the Top 50 crypto exchanges in the world are in China and professionals in the sector should have been worried about the potential disruption to crypto-related business. Wu said underground digital asset investment first saw crypto marketing events as highly critical to their success.

Whatever the slowdown expected, it hasn’t quite had an apparent effect yet, as we can see today.

Wu did admit though, that it was difficult to estimate just how much money Chinese investors had poured into the market, although the recent PlusToken debacle gave a good indication when it raised USD 3 billion from Chinese crypto investors despite turning out to be a Ponzi. It was shut down by the state in June 2019. Wu said:

“The market might take a heavy blow if the money stops flowing into these crypto asset classes as it usually did before.”

Another view comes from CTO at a San Francisco crypto hedge fund Trading Terminal, who believes that the correlation between the health event and crypto price action is impossible to quantify. Lingxiao Yang believes that since the entire crypto market capitalization is still dwarfed by the stock market, other factors could still come as easily into play. The CTO said:

“It is really hard to single out one reason that affects crypto trading volumes and market prices, given the data is not always available and transparent in the first place.”

In any case, we turn our attentions to the charitable efforts by some major cryptocurrency firms who have now pledged to assist the efforts against the health epidemic in Wuhan, led by crypto exchange Binance that has promised CNY 10 million (USD 1.44 million) to the campaign.

Binance CEO Changpeng Zhao actually confirmed that the pledge came from his company, although he has cautioned against sending actual crypto to the affected people. Instead, donations should be channeled for the costs of the efforts, such as for local logistics, hence the pledge through Binance’s Charity Foundation. He explained:

“For #Wuhan, not realistic to do crypto to end beneficiaries. Binance pledged 10m RMB ($1.5m USD) to help #coronavirus victims. We didn’t make any announcements. But [Binance Charity Foundation] BCF/Binance team has been busy for the last few days. Still need help to arrange logistics locally.”

Crypto marketing company Krypital also launched a charity drive aimed at purchasing more medical supplies for those affected in Wuhan. According to the post on Chinese social media chatting app WeChat, only USDT (Tether) will be accepted to ensure transparency. It explained:

“At the same time, we will also take advantage of our industry, the blockchain technology industry, to create a donation system based on the blockchain wallet to ensure that each transaction process is transparent, the task is responsible and efficient.”

 

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