The coronavirus outbreak has had quite a serious effect on most parts of the world. Financial markets everywhere have been taking a deep dive and chopping off significant amounts of many companies’ valuation. On Monday, many markets all over Europe and the US took a deep nosedive as the epidemic worsened. Bitcoin was also not spared.
Futures on the Dow Jones Industrial Average (DIJA) lost about 1,031 points, representing a 3.56% fall. Falling to 27,960.80, the crash is the worst the DIJA experienced since February 2018. The crash also completely erased all of the gains and momentum the DIJA had pulled in since the year began.
The other two major US indexes including the S&P 500 and the Nasdaq Composite, both fell 3.4% and 3.7% respectively. The S&P 500 closed at 3,225.89 after the drop, while the Nasdaq closed at 9,221.
Many market analysts believe that as the coronavirus continues to spread, things might get considerably worse. Some have even said that it’s possible the markets crash between 20% and 25% in the near future.
Bitcoin also fell over 3% to hit $9,473. This was a little surprising for many because, for a long time, the king coin has been touted as a safe haven in times of uncertainty like this. Its behavior in the past has also proven this to be true. However, this time, Bitcoin dropped while gold jumped almost 2% to hit a new 7-year record, hitting $1,676.60.
