Research: 67% of altcoins are still down more than 90% compared to the highest prices in history

On Monday morning, the US and European stock markets plunged as investors' concern for the corona virus – aka COVID-19, continued to rise.

A day earlier, the Italian government had quarantined in 10 towns when the number of people infected with COVID-19 has increased to 152 and so far, 7 have died.

The initial threat posed by the COVID-19 to global markets seemed to have subsided as China quickly adopted stringent intervention and quarantine measures across the country, which led many to believe that The world has avoided a pandemic.

Affect traditional markets

Daily chart of the DJI and S&P 500. Source: TradingView
Daily chart of the DJI and S&P 500. Source: TradingView

COVID-19 is currently available in 30 countries and territories. Recent outbreaks in Italy, South Korea, Bahrain and Kuwait over the past few weeks have forced investors and governments to face a bad situation.

When the market opened, the Dow Jones Industrial Average (DJI) plunged back – dropping 1,031 points to 27,960.8. The 3.56% drop is the worst correction the market has seen since December and February 2018. This pullback also wipes out all the profits that DJI has earned since the beginning of 2020.

The S&P 500 also recorded a similar dump, down 3.4% to 3,225.89 points, while the Nasdaq Composite fell 3.7% – to close at 9,221 points. Stock markets across Europe also corrected sharply.

More and more analysts are concerned that today's sharp decline could be the start of a further correction of 10% – 15%, due to large isolation areas in many Chinese cities. Quoc is expected to have a negative impact on markets and international trade.

Jim Kramer, CNBC host Mad Money, explained that the stocks are now “too toxic to touch” because US-based companies are too dependent on manufacturing in China. Kramer called on investors to be cautious when viewing this pullback as a buying opportunity, he said:

“I need to emphasize once again, the great risk from the corona virus outbreak is related to the disrupted supply chain and the simultaneous decline of business worldwide.”

Bitcoin price decreases as gold and silver rise

Interestingly, when the traditional markets corrected, Bitcoin (BTC) prices remained in a tight range throughout the day, but eventually fell 3.28% to $ 9,473 in the US afternoon.

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Bitcoin supporters believe the coin is inversely correlated with traditional markets and often assume that investors will turn to it as a hedge against volatility in traditional markets, but today This is not the case.

Daily chart of Bitcoin price. Source: Coin360
Daily chart of Bitcoin price. Source: Coin360

Despite a 3.28% drop, at the time of writing, the Bitcoin price continues to trade in the range of $ 9,400 to $ 9,900. Meanwhile, gold prices have risen nearly 2% to reach a new high of $ 1,676.6 and silver also recorded a similar increase.

Daily chart of Gold, Silver and BTC / USDT. Source: TradingView
Daily chart of Gold, Silver and BTC / USDT. Source: TradingView

Cryptocurrency investors and analysts will undoubtedly be curious about why Bitcoin failed in today's race, as crypto assets are still often referred to as “digital gold.”

Previously, in the event that traditional markets fluctuated and geopolitical instability occurred, Bitcoin price witnessed a significant increase. In 2019, top digital assets rose sharply as the U.S.-China trade war escalated to a negative impact on the market, and earlier this year when concerns over a US-Iran military war began. scare investors.

Readers can update BTC rates and more than 2,000+ cryptocurrencies in real time here.

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According to CoinTelegraph
Translated by ToiYeuBitcoin

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