It’s not just the Dow that’s down and experiencing exponential losses that haven’t been seen since the 1987 Market Crash.
Bitcoin is also taking a huge hit as a result of the recent coronavirus and has seen a 55% fall, which by any market’s standard is considered epic. The reason why Bitcoin has taken it so hard is that a lot of people are receiving margin calls on their borrowings, which is liquidation any assets that are uncollateralized. This is one of the reasons why the gold standard fell yesterday as well.
Because of China, the economy is now the official thermometer of the virus. One of the biggest sectors that are determining this is flight – the demand for flight is simply not there, and even if you were to travel to China right now, you would not be accepted at the other end.
Another reason for this drop is that the need for cash is higher than ever, not just to prop up margins, but for businesses to be able to keep their doors open, as well. Interestingly, the authority on the trade war is keeping his cards close to his chest, as nobody knows if the Chinese currency is going to be strong or weak going forward.
At this point in the pandemic, most governments are hosing cash. This is in order to bridge the gap that is currently shaking the global economy. If you’re not someone who has a lot of faith in bitcoin, it’s recommended that you stay away.
No matter what it does at this point, if you don’t have the faith to white knuckle it through, you shouldn’t get into it in the first place. At this point, it is showing its true colors as one of the most volatile of assets and who knows what the future holds both for the economy and the virus.