World markets plunge into turmoil: declines in stocks, oil and cryptocurrencies
Everything seems to be in turmoil at the moment, wherever you look. Recently, futures, stocks, oil, including cryptocurrency, have suffered in varying degrees. Today’s disaster has a large number of factors: the aggravation of the coronavirus epidemic, the confrontation of the Russian Federation and Saudi Arabia, and cataclysms in the global economy as a whole have led to cataclysms that bring down markets around the world.
The most disturbing revelation was actually that digital currency units are not protected from decline. In fact, cryptocurrencies were often considered a reliable investment during periods of volatility, and almost all of their adherents said that changes in the price of cryptocurrencies occur regardless of classic financial assets. But this week, cryptocurrency instantly lost its own, not so long ago acquired non-dangerous bay status, when the total market capitalization collapsed by $ 25 billion – that is, by 9% – in less than a day. If this is not enough to understand how sad things are with digital assets, today the extreme nail was hammered into the lid of their coffin – market capitalization collapsed another 25 billion dollars, so the total loss was 50 billion in less than a week.
The main digital currency, Bitcoin, has suffered quite a lot, losing 10% in value in just 24 hours. Although there were a number of short-lived signs of recovery in the following days, in mid-March, bitcoin hit another 15%. Ashish Singhal, CEO of the CoinSwitch.co cryptocurrency exchange, officially stated the following: “The sudden drop in prices was caused by the sale of Bitcoin by PlusToken.”
Naturally, a large-scale campaign according to the well-known Ponzi scheme definitely influenced the drop in Koin price, but this trend is a sign of much more hysteria with the sale. World markets are practically in free fall, because oil futures have fallen by more than 30% after the news that OPEC has failed to agree on a new cut in production. BP shares fell 23%, Royal Dutch Shell – 15%, and Premier Oil lost 55%. It is unlikely that the situation will be resolved in the foreseeable future, since the Russian Federation and Saudi Arabia are set for a price slaughter.
As expected, the damage was not limited to the fact that bitcoin and almost all other cryptocurrencies suffered to a similar or even worse degree. For example, the cost of the Ripple XRP collapsed by about 10% over the weekend and another 20% after. Today, the third cryptocurrency in terms of market capitalization is traded at approximately $ 0.15 per coin, by analogy with $ 0.24 a week ago.
It is unlikely so far that a sharp rise in prices is expected, so before XRP catches up with the lost positions, it will most likely take some time. Many were amazed that Ethereum paid even more. For this currency, aimed at smart contracts, on the first day of the week a decrease in value of more than 20% was recorded from $ 253 to $ 189 per unit. Following this, the situation worsened: ETH lost about 30% of the price over the past day. At the same time, Bitcoin’s younger brother, Bitcoin Cash, is even worse.
The fourth cryptocurrency in terms of market capitalization at the beginning lost 25% in value at the end of last week, and by now it has begun to cost 35% less. Another Bitcoin hard fork, Bitcoin SV, has become another currency unit that has been severely damaged this week. For BSV, as well as for its BCH, this week was quite brutal. At the moment, it is being traded at a cost of 50% of its price on March 6th.
It was absolutely not assumed that this collapse would touch the cryptocurrency market either. The recent situation allowed us to imagine that digital monetary units have every chance of becoming a reliable asset, and almost everyone expected them to grow when the rest falls in value. However, to the disappointment of all those who chose cryptocurrency as their own investments, this market once again showed its own unpredictability, having fallen harder than stocks and oil combined. At this stage, the positive point is that digital assets are being traded at a fairly profitable value in relation to classic money, and it is impossible to imagine a better time to acquire them than now. If you want to take advantage of the moment and trade at a bargain value, you will need a trading account on a reliable exchange such as Whitepaid. Register an account now and enter the market before prices inevitably straighten.