Having total reported death cases exceeds due to the deadly contagious coronavirus, almost all markets have halted with a trauma.

As the outbreak widens, the most severe impact on oil demand will be through aggressive travel curtailments. Efforts across the globe to contain the virus have already forced airlines to cancel flights, public gatherings to be suspended, and business conferences to be postponed. Passenger traffic is also certain to decline as a standard component of the public health emergency includes work-from-home arrangements.

Fraudsters may be on their toes for such circumstances, while naive Bitcoin investors might be apprehensive during times of panic. The latest Coronavirus precautions and lockdowns would also mean dishonest crypto-related players may attempt to scam buyers into losing their money. While the underlying Bitcoin price plunges below $5k levels, and hits fresh lows since April 2019.

Ever since then BTCUSD price has shown constant bullish steaks from the lows $6,401.24 levels to the recent highs of 10,522.51 levels, which was on the verge of hitting 5-months highs. We reiterate that the minor corrections are always healthy, but at this juncture for us to get a clarity on the liquidity assurance seems dubious if the prevailing global turmoil persists.

Bitcoin is now reporting a 27 percent loss on a year-to-date basis after showing gains of 46 percent just a month ago when the cryptocurrency was trading near $10,500.

“Bitcoin will regain poise with risk assets, which will start seeing a sustainable recovery once there is stabilization in the coronavirus infection curve,” Mike Alfred, co-founder, and CEO of Digital Assets Data told CoinDesk.

Nevertheless, the deadly contagion appears to spread in Europe and the U.S. Thus, the current uptick in the equity markets could be a chart-driven bounce or investors may have taken heart from the Federal Reserve’s decision to infuse $1.4 trillion worth of liquidity into the financial system.

If the recovery gathers momentum during the U.S. trading hours, bitcoin could very well find acceptance above $6,000 once more. However, as long as the virus outbreak shows no signs of slowing down, the risk of further downside moves in equities and bitcoin would remain high.

Hence, fresh accumulation is advisable at this juncture, while for those who are holding bitcoins are advocated the below hedging strategy. As the anticipation for the upside risks in the underlying security price up to the retest of $6k is most likely and bounce back up to $10k mark remains intact. Accordingly, the long hedges were advocated using CME BTC Futures. It is unwise to count the chickens before they hatch, if we keep speculating on the next upside target and accumulate fresh bitcoins. Instead, one can certainly uphold the above advocated long hedges for now (spot reference: $4,927 levels).