Most of the financial market, if not all, have taken a significant hit, with the cause being tracked by many analysts and players to the rapid spread of COVID-19.
Over the weekend, the cryptocurrency market took what is arguably its most substantial hit since the start of the global epidemic. At the same time, the stock market continues to see further sell-off, while oil prices dipped harder to new all-time lows.
The cryptocurrency market, which is valued around 237.1 billion USD, saw about $26.43 billion lost in the entire value of digital currencies from a day earlier at around 1:17 P.M., Singapore time, according to CNBC citing data from CMC.
As the day went on, the crypto market continued to decline, seeing an increased sell-off. Bitcoin (BTC), the world’s most valuable cryptocurrency, fell by over 10% in 24 hours at around the same time, while a few others such as Ether (ETH), Bitcoin Cash (BCH) and Ripple (XRP) saw a double-digit percentage point losses.
At the time of writing, the market is still dipping with top cryptocurrencies eagerly searching for new support levels.
The tremendous changes in digital currency prices are quite not unusual, given that they are mostly known to be volatile. Despite Bitcoin losses, it is worth noting that it’s still up on the year-to-date chart at around 9%.
Many market players think the current condition of the market could be another lofty opportunity to buy more Bitcoin and other cryptocurrencies, with the co-founder of Kenetic Capital, Jehan Chu, saying that Bitcoin is a buy during these dips, especially for those with long term investment horizons.
“We can expect more of this volatility sparked by macro health and financial shocks, but ultimately long term investments in the digital future and it’s key asset Bitcoin will be a winning strategy,” Chu added in the report.
Oil, Stock Plummets Correspondingly
The development with the crypto market is reportedly coming after the international oil benchmark. Brent crude futures dropped by 30% to $31.02 for a barrel, which is said to be the lowest level since February 2016.
On the other hand, the stock markets in Japan and Hong Kong also noted a sharp decline, according to the report. The U.S. stocks are set for a steep drop at the beginning of trading today, although the Federal Reserve cut interest rates by 50% to save the market.