Jason Wu, CEO of the blockchain-based lending platform, DeFiner revealed that the Chinese are less enthusiastic to attend crypto meetings. He stressed, most especially on large gatherings. This he says is due to the fear of contracting the new coronavirus. As such, the virus coupled with the Chinese New Year celebration could have a negative impact on cryptocurrency prices.
Jason Wu Believes Coronavirus Might Impact on Crypto Prices
Per the report, Jason Wu revealed that DeFiner had made plans to go on a 10-day tour in China to meet potential clients. However, plans changed due to the outbreak of coronavirus in China this month. In fact, the epidemic has made residents of the country less enthusiastic about attending any type of cryptocurrency-related gathering.
DeFiner’s CEO further noted that the low-level interest in attending these meetings could have a negative impact on cryptocurrency prices. In his opinion, underground cryptocurrency businesses in China usually rely on marketing events to raise funds. These funds are later pushed into the crypto market, which helps to increase the price of Bitcoin and other cryptocurrencies.
“The market might take a heavy blow if the money stops flowing into these crypto asset classes as it usually did before,” Wu said.
China’s Dominance on Crypto Sector
On the other hand, China has the most exchanges in the Asia-Pacific region, whereas 40 per cent of the top 50 exchanges in the world are in this region. As such, less investment in cryptocurrencies this period could take a toll on their prices. Asides from China, neighboring Asian countries including Thailand, Japan, Taiwan, South Korea, Vietnam, Malaysia, Singapore, and Nepal have reported cases of coronavirus.
The virus, in question, has infected about 2,700 people and killed 80 as of Sunday evening. Coronavirus has also spread to the U.S., France, and Australia. However, in each of these countries, the reported cases are significantly lower than that of China. The World Health Organization (WHO) also noted that coronavirus is an emergency in China, whereas, it is still too early to classify it as an international emergency.
Besides the virus, Wu noted that the Chinese New Year celebration may also be a point of concern. He further said Chinese retailers sell their crypto assets before the holiday then reinvest in the market the following year. As such, a reoccurrence of this sell-off this year could lead to a decline in prices.
On the other hand, cryptocurrency enthusiasts have begun to advise that people adopt Bitcoin and other cryptocurrencies. In their opinion, coronavirus is spread via paper money, however, digital currencies reduce the exposure to these notes.