Bitcoin Booming: Coronavirus concerns boosting value

U.S. & World

(CNN) – The coronavirus outbreak is sending shock waves throughout global financial markets, with the Dow falling more than 1,000 points at one point.

But it’s also causing one digital currency to soar.

The price of bitcoin is hovering near 10 thousand dollars. Up more than 10 percent this month, it’s the best start to the year for bitcoin since 2012.

Crypto-currency 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.-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 has 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.

After all, bitcoin prices are still more than 50 percent below the all-time high of nearly 20 thousand dollars back in 2017.

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