Bitcoin falls and gold rises following the announcement of Donald Trump’s Covid-19 diagnosis

On Friday, October 2, President Trump announced that he and his wife had been diagnosed with Covid-19.

This news, coupled with the charges pressed against BitMEX, caused the price of Bitcoin to drop.

The price of gold, on the other hand, skyrocketed, proving once and for all that the two assets are not correlated.

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Bitcoin’s price plummeted shortly after U.S. President Donald Trump announced on Twitter that he and his wife had tested positive for Coronavirus.

In a tweet posted in the early hours of October 2, Donald Trump announced that he and the First Lady, Melania Trump, tested positive for Covid-19. In the tweet, he also indicated that they would „immediately“ start the fortnightly process.
The response of the gold and Bitcoin markets

Shortly after the news was announced, equity markets around the world reacted with a sharp decline. The cryptomoney markets seem to be following a similar path, with Bitcoin dropping nearly $200 since the news broke.

This latest fall comes on top of a decline fueled by news that U.S. government officials have pressed charges against BitMEX owner Arthur Hayes and other executives accusing the exchange of violating the country’s know-your-customer and derivatives trading laws. All in all, Bitcoin’s share price has fallen by more than 4% in the last 24 hours.

Gold, on the other hand, is rising. The price of the precious metal is on the rise in its daily data, growing by more than 1% to a peak of $1,999 per ounce. With these developments, many traders have noted the opposite trends of the two assets. One of them tweeted: „I think that once and for all we can all agree that the BTC is not correlated to gold but to stocks. We can’t change our minds when it suits our preconceived ideas, that’s the way it is“.

The Ripple Effect

The news affected markets around the world, with the Australian ASX falling 1.35%, while S&P 500 futures lost about 2%.

Over the same period, Ethereum lost approximately 5%, falling to $338. Within the cryptomoney industry, however, it is DeFi tokens that take the hardest losses. YFI, SNX, BAND, SUSHI and COMP all dropped by more than 10%.

While this may only be a small slippage, more than one commentator in the field recognizes its potential importance for Bitcoin. As crypto analyst Joseph Young explained: „The chages against BitMEX and Trump’s Covid-19 diagnosis failed to bring Bitcoin’s price below $10,000, even briefly. Bitcoin’s resilience during this cycle is quite impressive“.