Crypto and Forex traders face volatile and bear markets respectively due to the coronavirus. Since February 25, the number of new cases of COVID-19 reported in the rest of the world has exceeded new cases in China, according to the World Health Organization.
Fear that the spread of the virus will lead the world into a pandemic that slows the global economy and depresses stock prices; the S&P 500 index has been in the red by 10% since the start of 2020.
Meanwhile, the volume of OTC crypto transactions has increased since the virus has become a constant part of the daily news cycle. “If you talk about crypto, we can see significant green candles in the volume over the past 30 to 60 days” – says a spokesperson for Tenkofx who is a forex and cryptocurrency broker specializing in market access Forex, spot indices, metals and energy as well as cryptocurrencies.
Italy is now the biggest hot spot for coronavirus infections in Europe, and has effectively locked out the whole country in an attempt to slow the virus down. Investors and businesses have so far expressed disappointment with the government’s response to rising infections in the United States, and traders warn that there may be more disruption on a wide range of financial markets. .
So far, the largest economy in the world is not at all prepared for this coronavirus crisis.
The Bottom Line
A survey of economists predicted that China’s annual economic growth in the first quarter of 2020 would slow to 4.5% from 6.0% in the fourth quarter of 2019, illustrating the heavy toll of the coronavirus. There could be 3 scenarios
the best case – a delayed V shape
the basic case – a U-shaped recovery
the worst case – an L-shaped recovery