Bitcoin (BTC) may be gaining cheers to "economic fear" over coronavirus — but only up to a point, analysts are concluding as the disease spreads.

The cryptocurrency hovered at around $9,000 on Tuesday, capping 4% gains for the week in which coronavirus sent China into partial lockdown.

Coronavirus dubiety creeps into markets

Fears are now surfacing about the impact on Chinese economic growth, while global signals also suggest investors are more cautious about the short term.

For Cointelegraph Markets analyst Mati Greenspan, the sentiment is already palpable. Uploading a chart of Usa bail yields, he noted one-calendar month performance delivered higher returns than the longer 7-year options.

"It means investors are expecting trouble in the short term," he explained in comments.

Such economic doubt and unease on markets accept frequently sparked increased bullish action for Bitcoin. As Cointelegraph noted, the Islamic republic of iran crisis earlier this month was just the latest geopolitical result that appeared to buoy the Bitcoin price.

While Greenspan noted Bitcoin remained a highly non-correlated nugget, mainstream media claims that Bitcoin was defying traditional markets and gaining purely on the back of coronavirus were widely panned.

A study by the Fiscal Times with the headline "Coronavirus is good for Bitcoin" came in for detail criticism. Notably, the report cited two random Twitter accounts dedicated to altcoin XRP as sources.

As Cointelegraph reported, Bitcoin has long exhibited increasingly potent technical fundamentals, which preceded recent price moves.

Vays: virus would "hurt" BTC in epidemic scenario

Discussing the bear on of coronavirus, trader Tone Vays yet stopped short of agreeing with the thought that the affliction could perpetually fuel farther gains.

If it were to spread internationally, for example, panicked investors would likely reduce speculative activity, pregnant less interest in non-traditional assets such every bit Bitcoin.

On the latest episode of his Trading Bitcoin YouTube series, Vays told viewers:

"The coronavirus does bring some economic fear, and so the fear that the coronavirus could start to spread is certainly helping the rising of Bitcoin versus hurting the ascension of Bitcoin."

Vays too noted that Bitcoin would need to stay to a higher place $9,000 for several days to cement its contempo bullish gains.

Google search data for

Google search information for "coronavirus" and "Bitcoin." Source: Google Trends

Meanwhile, information from Google Trends appears to underscore the lack of correlation between the crisis and Bitcoin, with search interest in the latter remaining comparatively flat throughout the by month.