The last few days have been catastrophic for traditional financial markets and pretty damaging to the cryptocurrency field as well. Major global indices are charting tremendous losses while the crypto market cap lost more than $30 billion in the past week.
Major Indexes Chart Serious Losses
Over the course of just a few days, major global indexes have charted losses that are troublesome, to say the least.
Starting off with the S&P 500, it lost 3% yesterday alone and is down 7% in the past five days. Next on the list is the Dow Jones Industrial Average (DJI). Like the S&P 500, it also lost 3.15% yesterday and is down almost 5 percent in the past five days.
The Nasdaq Composite, however, has taken the biggest hit. It’s down more than 8.3% in just five days, 2.77% of which were lost in yesterday’s trading session.
While a lot of financial experts are associating the losses with fears of the spreading coronavirus, the Nikkei 225 which tracks the largest Asian companies, is down less than 4% over the same period of time.
At the same time, gold is up more than 3% in the past 5 days, perhaps hinting at the fact that investors are trying to protect their capital turning to it as a hedge. At the time of this writing, gold is trading at around $1650 per ounce.
According to popular analyst Nicholas Merten, also known as DataDash, during the last four days alone, markets managed to erase the gains made through the past two months.
Over the last four days, markets retraced the entire last two months of stock gains. That’s nearly $4 trillion dollars of value lost in the blink of an eye.
Taking a look at this monthly chart, what month in the past looks similar? pic.twitter.com/0zxiWWGYme
— Nicholas Merten (@Nicholas_Merten) February 26, 2020
Analyst Howard Silverblatt stated that the S&P 500 alone lost about $2.14 trillion in market capitalization throughout the past four trading sessions.
Bitcoin Price Takes A Beating As Well
It’s not only the traditional markets that are plummeting this time around. Bitcoin’s price is also caught in a downward spiral. At the time of this writing, Bitcoin is trading at around $9180, which is about 4% down in the last 24 hours.
Over the past week, however, Bitcoin lost about 9% and it broke below serious support levels on the way down.
As seen on the above graph, it’s the entire market that’s bleeding out and altcoins are not left out. ETH lost about 8.5%, XRP is down more than 12%, while Tezos saw 25% erased off its value.
Moreover, Bitcoin’s dominance is once again on the run. Currently standing at 64.3%, it gained about 2% during the week. This means that altcoins are losing grounds compared to Bitcoin.