Coronavirus: The Threat to the Global Economy
What to expect Bitcoin?
On February 28, 2020 the World Health Organization, due to the spread of coronavirus in Europe, raised the global risk assessment of its spread to “very high”.
Over the past week, global markets have already lost $ 5 trillion in capitalization on Friday, February 28th. The USA stock exchanges closed with a fall in indices by 3-4%. They are down for the sixth day in a row.
The Dow Jones Industrial Average index on Thursday results fell by 1190.95 points (4.4%) and amounted to 25 766.64 points. In his story, this is the biggest drop in one day.
Yields on 10-year United States treasury bonds fell five basis points to 1.28% – the lowest in the history.
The S&P 500 index fell 4.4%. Since last Friday, it has fallen by more than 10%. This is the worst week for the index since 2008 when the global financial crisis began. The Nasdaq Composite Index fell 4.6% – the strongest index decline in more than eight years.
European stock markets also continued to fall on Thursday due to news of the spread of coronavirus outside of China. Italy is currently the largest coronavirus center in Europe. In Italy the number of people infected with the COVID-19 coronavirus has reached 655.
Index of the largest enterprises in the region Stoxx Europe 600 at the close of trading fell 3.75% to 389.45 points. German DAX lost 3.19%, French CAC 40 3.32%, British FTSE 100 3.5%. The Spanish indicator IBEX 35 and the Italian FTSE MIB fell by 3.55% and 2.66% respectively.
“Numerous trade chains associated with China are being destroyed, in addition, there is a high level of uncertainty as to how the situation will develop further. – said Scott MacDonald, an expert at the CSIS American Institute – When we get out of all this and how, it’s not clear.”
What to expect bitcoin?
Most analysts argue if the stock market continues to fall Bitcoin will become the main beneficiary.
The rollback of the Bitcoin exchange rate observed over the past few days can either be technically related to the previous rapid growth or depend on the correction of traditional markets that express their concern about coronavirus.
From an analytical point of view, those assets that were overbought as a result of a bull rally should inevitably experience a bearish effort to find new levels of support. This is exactly what is happening with Bitcoin.
In any case, now Bitcoin is sliding quite smoothly down, the market is in complete uncertainty and BitXmi exchange analysts advise to closely monitor the news, wait and choose a confident entry point with us.
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