Global stock markets are tumbling today as fears of a second coronavirus (COVID-19) 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 Coronavirus Reignition
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%.
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%.
Just yesterday, CryptoPotato reported that the CEO of one of the world’s leading trading platforms, eToro, warned this might happen. Commenting on the matter, Yoni Assia said that “there is a crash coming soon.” While there might be more pain ahead, today was clearly a move in this particular direction.
Bitcoin and Cryptocurrencies Follow Suit
Unfortunately, the cryptocurrency market follows suit. Bitcoin is also down just shy of 6% as it currently trades at slightly below $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%.