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

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%.

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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

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Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ, nor should they be attributed to AtoZMarkets.

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