HomeinetBitcoin and other crypto crashes in fear of COVID-19 outbreak

Bitcoin and other crypto crashes in fear of COVID-19 outbreak

Bitcoin and other cryptocurrencies have collapsed as fears of a new COVID-19 outbreak have shaken traditional financial markets.

COVID-19 crypto

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The global crypto market fell 7,4% during the last day, after the dramatic dip that took place on Friday morning.

Bitcoin fell 6,5 percent and ethereum fell 7,8 percent.

No major crypto could avoid the fall, with the entire market collapsing on Friday morning.

Problems in crypto markets arose as traditional financial markets were shaken by fears about the new COVID-19 mutation and what it might mean for the economy.

Major airline inventories fell between 5 percent and 6 percent in preliminary transactions as the new variant found in South Africa prompted the European Union, Britain and India, among others, to announce stricter border controls.

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Cruise companies Carnival Corp and Royal Caribbean Cruises plunged about 9% each.

Bank of America, Citigroup, JPMorgan Chase, Goldman Sachs, Wells Fargo and Morgan Stanley fell between 3% and 4% as traders cut their recent bets on interest rate hikes.

COVID-19 crypto

The strongest than expected inflation in the US and expectations that Jerome Powell was the safest choice for the Fed chair had stabilized bets that the central bank was likely to raise interest rates several times next year, dropping US stocks from record highs this year. week.

"Investors do not know if stocks could survive another financial blow with less support from central banks, as central banks would have to face a double battle that is intensifying on both fronts: inflation is rising and news about COVID-19 are becoming worrying, "said Ipek Ozkardeskaya, senior analyst at Swissquote.

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"The problem is that they can not use the same tools to fight inflation and economic slowdown. And the choice will be difficult. "

Source of information: independent.co.uk

Teo Ehchttps://www.secnews.gr
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