The S&P 500 stock index is experiencing its fastest decline in history, writes CNBC. During yesterday's trading sessionThe S&P 500 immediately fell 4.42% and the Dow lost a record 1,190.9 points amid concerns about the coronavirus.
Goldman Sachs analysts in their report on Thursdaywarned that the virus could disrupt supply chains in factories, reduce export demand and, ultimately, stop production growth in China, the United States and other countries. Bank of America analysts said Thursday that the coronavirus "has taken over global markets."
The prevailing interest rates are expectedclose to historical lows and set at negative levels in Europe and Japan, will not grow "until the economic activity in China improves."
According to Deutsche Bank, the S&P correction500 was the fastest 10% decline from all-time highs in history. According to Deutsche Bank chief economist Thorsten Slok, the rate of decline is even faster than Black Monday in October 1987 (the peak was reached in August 1987).
Dan McCardle, co-founder of the analytics company Messari, noted that the weekly S&P 500 candle looks like a “whale” dump in the low-liquid altcoin market:
S&P weekly candle looks like a whale dumping a low-liquidity altcoin market: pic.twitter.com/d574Pg23JW
- Dan McArdle (@robustus) February 27, 2020
Although in the past Bitcoin has sometimes shown a negative correlation with traditional assets, this does not seem to be the case, so cryptanalysts have so far forgotten about the thesis about Bitcoin as a safe-haven asset.
Billionaire investor Hamath Palihapitiya, whois chairman of space company Virgin Galactic, said in an interview with CNBC on Wednesday that Bitcoin is "not correlated at all" with other asset classes such as stocks and bonds. He is confident that demand for Bitcoin is growing not under the influence of events such as the coronavirus outbreak.
Cryptocurrency analyst Alex Saunders also believes that bitcoin needs to "separate from the crowd." He must be “completely uncorrelated” in order to grow.
“The best thing that should happen to Bitcoin is rightnow is not growth when stocks are falling; and not fall when gold falls. It should be completely uncorrelated. He's not doing very well at the moment. However, things can change very quickly. Blue chart – S&P 500; orange – BTC; black - gold."
</p>Best best thing for #Bitcoin to do right now isnot to go up when stocks down, or go down when gold goes down, it is to be completely uncorrelated. At the moment it’s not doing a good job at that. That can all change very quickly though.
Blue: S&P 500
Orange: BTC
Black: Gold pic.twitter.com/2KOWmiQrLq- Alex Saunders (@AlexSaundersAU) February 27, 2020
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