Stretch Your Dollar: Coronavirus concerns drive up Bitcoin prices

Stretch Your Dollar

(WTNH)– The coronavirus outbreak is sending shock waves throughout global financial markets with the Dow falling more than 1,000 points at some point. But it’s also causing one digital currency to soar.

Digital money is making a comeback. The price of bitcoin is hovering near $10,000, up more than 10-percent this month. It’s the best start to the year for bitcoin since 2012.

Cryptocurrency experts say coronavirus fears are one-factor boosting bitcoin prices, saying it’s an asset that often goes up when investors feel nervous.

Lingering fears around U.S. and China trade relations, Brexit and global political tensions are also strong factors boosting prices.

And it’s not just bitcoin. Gold recently saw a boost, surging this month and trading at a 7-year high.

Experts say both are benefiting from historically low-interest rates, which have led to a decline in the U.S. dollar compared to other currencies over the past few months.

Experts say gold, bitcoin, and other digital currencies have historically done well when investors bet that the value of big government-backed currencies will fall.

They’re seen as an alternative for investors looking to safeguard their wealth.

If you’re interested in investing, experts recommend you treat bitcoin as a long-term investment and treat it as a small part of your portfolio given the volatility of cryptocurrency.

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