Some of us remember previous occasions when the world’s stock markets went into freefall, and they have all been given names. There was Black Wednesday in 1992 for example. Will today, 9th March be remember as ‘Bloody Monday’, the day that the markets truly went into spin, following a protracted downturn that started on 24th February, following the Coronavirus outbreak.
Starting in February, The COVID-19 outbreak caused supply disruptions and the Dow Jones lost more than 3,700 points, or just over 10% in less than a week. The Nasdaq and S&P 500 also lost more than 10% that week, as did many other major stock markets around the world.
Today, we are seeing something of a bloodbath in stocks, oil and crypto.
Bitcoin closed the week at $8,024, a shocking 9.92% loss and a new weekly low not seen since 13th January when it traded at $7,946. This abrupt correction took place as DOW, S&P 500 and oil futures plummeted due to investor fears over the economic impact of the coronavirus continued to intensify.
And, the other altcoins also suffered major losses. The majority of top-20 altcoins followed Bitcoin, dropping by double digits. Ether (ETH) corrected 13.67% and pulled below $200, Bitcoin Cash (BCH) dropped 17.67%, and XRP lost 12.17% of its value.
Then there is the situation with oil. Brent Crude index fell by 30% amidst the growing disagreement between Russia and Saudi Arabia over oil production, as the OPEC members debate whether or not cuts to crude oil production should increase as demand weakens across the globe. Despite the fact that it knows Russia is against its decision, Saudi Arabia is reported to have finalised plans to increase production, and this is leading investors to fear that a price war is on its way.
No doubt coronavirus is going to continue to affect the markets, and for different reasons. In Italy, around 16 million people have effectively been quarantined as bars, schools, sports competitions and travel is shut down in northern Italy. And in France, all gatherings of more than 1,000 people have been banned in an effort to stem the spread of Coronavirus as 19 people have already died and more than 1,126 have been infected.