Over ten thousand dollars per Bitcoin was the cryptocurrency exchange rate last weekend. Today, the rate dropped slightly to 9857 dollars per Bitcoin, but on Sunday, the crypto currency reached its highest rate since September 2019. All thanks to the corona virus in China.
Due to the corona virus, Bitcoin‘s price started to rise as early as the beginning of January, indirect effects have contributed to a higher price in recent days. A significant proportion of Chinese mining-operations have been shut down because of the virus, even when these operations were taking place far away from the virus epicenter. BTC Top, a large mining-hub in western China, was closed by the police early last week because of the spread of the virus.
Problems on multiple levels
Not only the miners themselves are experiencing problems, but also the manufacturers of equipment are experiencing probems, which contributes to the rise in value. Manufacturers such as Bitmain and Canaan have to close down their locations temporarily, resulting in a significant decrease in operational Chinese mining-hubs.
Finally, the rise in the Bitcoin price is also due to being an interesting alternative for investors in China, now that the national market is pretty much shut down by the corona virus. Cryptocurrency can still be traded as usual and still offers an opportunity to earn income.