Stock market sell off driving crypto market crash?

Right after the latest enormous sell-off that negatively impacted the entire crypto industry leading to the worst crypto market crash, Bitcoin and other cryptocurrencies seem to be behaving like risk assets.

Bitcoin (BTC) plummeted to about $5000 in just a 24-hour window, while other altcoins like always, followed the suit. And now the whole financial market is experiencing one of the worst days in crypto history, as Coin Market Cap recorded as much as 37.7 percent drop in Bitcoin price alone.

Crypto market crash: Bitcoin, stocks, and fear of Coronavirus

Coronavirus, that started from Wuhan, a city in China has now spread across 114 countries. The highest numbers of affected people are in South Korea, Iran, and Italy, while in America and Canada the numbers of virus stricken people are increasing steadily.

The whole health crisis is giving a major blow to financial markets and different asset categories. Few hours after the speech of President of the United States of America Donald Trump and European Central Bank’s (ECB) announcement on dealing with the on-going crisis; the entire cryptosphere plunged in the crypto market crash.

Similarly, the global stock markets have been hit hard due to this health crisis. In Italy, it dropped by 16.6 %, in Brazil 14.7% and Spain 14.6%. In Germany losses registered were -12%, France -12%, UK -10.9%, and U.S. -10%.

As the virus is spreading across the globe, many countries are taking drastic steps, such as Italy quarantined almost the entire country. In order to halt the virus from spreading any further, many states are planning to do the same. This whole bizarre situation is negatively impacting the economy. Moreover, companies are halting their production and many employees are being laid off.