Bitcoin and Global Stocks Plunge on Second Wave of COVID-19

Bitcoin’s struggle to reclaim $10K came to an abrupt end as the price suddenly dropped to $9,012. Right before the BTC price plummeted, pre-market data of the Dow Jones Industrial Average (DJIA) indicated a 900-point drop.

June 11 2020 | AtoZ Markets – Global stock markets are tumbling today as fears of a second coronavirus wave grow stronger. Reports have it that there’s a rising trend of new cases in the US and across the world, and this has evidently taken its toll on the economy as well.

Equities tumble amid fears of a second wave of COVID-19

The World Health Organization announced that the coronavirus pandemic is worsening across the globe. The number of new cases continues to spiral on and even reached a new all-time high.

It appears that the reality is starting to settle in as major indices are down a sizeable amount across the board. The S&P 500 lost 4.5% today as it’s currently at around 3,050 basis points. The Nasdaq 100 is also down 3.3% to 9,750 points after breaking over 10,000 yesterday for the first time in history. The other major index, the Dow Jones Industrial Average, is also down about 5.5%.

Global Stock Plunge

The above heatmap of the companies included in the S&P 500 best describes today’s bleeding. Every single one of the firms is currently down, and the decreases range anywhere between 1% and 10%.

Price of Bitcoin and cryptocurrencies also dropped

Unfortunately, the cryptocurrency market follows suit. At press time, lows of $9,012 appeared before a modest bounce brought the price slightly above $9,200.

That, however, could be somewhat expected. Yesterday, BTC spiked to $10,000 shortly after the US Federal Reserve concluded its two-day June meeting, confirming the near-zero interest rates for the short- and possibly mid-term. This, according to some, means that the institutional involvement in Bitcoin has increased.

Therefore, it’s probably not a surprise that the asset has once again become largely correlated with the movement of legacy markets and is now in a decrease.

Altcoins are also suffering. All of the large-cap cryptocurrencies, much like stocks, are currently trading in the red, marking notable decreases upwards of 6%.

Bitcoin Price drop

Think we missed something? Let us know in the comment section below.

Share Your Opinion, Write a Comment