Crypto markets are trading in red territory as coins sink alongside a quickly wilting financial market.
U.S. President Donald Trump’s announcement that the U.S. had banned travel from several European countries has stunned the stock market. But Bitcoin (BTC) price has nose-dived over five percent to mirror market-wide plunges in the financial markets.
Bitcoin and altcoins sink
Bitcoin has dropped 5.67 percent in the past 24 hours to see its price slip to $7,413. Bitcoin’s behavior at the moment is far from the safe haven tag crypto enthusiasts have maintained it has. According to some analysts, the top cryptocurrency is failing to mirror safe-haven assets like gold and U.S. Treasuries.
Comparatively, gold prices are 0.22% up in the past 24 hours to trade at $1,638 per ounce. The 10-year U.S. Treasuries yield is down 5 basis points but the 0.766% is up on its 0.318% which was reached on Monday.
Bitcoin is likely to see further declines short term after WHO declared COVID-19 a pandemic. BTC could plummet to lows of $7,200 or lower before bouncing. But Binance CEO Changpeng Zhao says people need to accept the virus is real and be prepared. He added:
“No need to panic, but be prepared, and stay #SAFU.”
In the rest of the crypto market, prices of top altcoins have also slumped. Most altcoins are seeing double-digit collapses.
Ethereum is down 14 percent to trade at $171; XRP has shed 9.9 percent at $0.188; Bitcoin Cash (BCH) is losing 9.9 percent at $241; Litecoin (LTC) is down 12 percent at $43 and Tezos has slumped to $2.11 after dropping 18 percent in the past 24 hours.
Crypto sinks much like Global markets
The most restrictive response to the spread of coronavirus by the U.S. came via U.S. President Donald Trump’s 30-day Europe travel ban. The move seemingly “blindsided” Europe and added to the anxiety in the global markets.
Other than soothing a decimated market, Trump’s remarks confirmed things were headed for the worst. In response, stock markets have slid deeper into bear territory. Fears of an impending global recession continue to compound as investor anxiety rises to the highest levels since the 2008 financial crisis.
In the futures markets, Euro Stoxx 50 futures slipped 8.3% Thursday to hit its lowest level in five years. The S&P 500 futures tanked -148 points or 4.9% while the Dow dropped over 1,464 points to lose 5.86%.
FTSE opened sharply lower, losing -5.69% and the Nikkei declined 4.41% as fears gripped traders across the globe. Australian shares slipped to a 7.4% decline while in South Korea, the Kospi slumped 4.8%.
The travel ban does not apply to the United Kingdom.
Featured image courtesy of Shutterstock.