This is not a time for fear. This is a time for taking action to prevent infection and save lives now,” says World Health Organization head Dr Tedros Ghebreyesus
Iran, Italy and South Korea are now fighting to contain the virus to avoid a situation like China. In total, the number of cases reported in China is 78,497 with 2,788 fatalities worldwide. Currently, Iran and Italy have reported over a 1000 cases, as South Korea’s affected count increases to 2,022.
In China the number of ‘new‘ cases are decreasing, below 350 now. While it is optimistic, the region is region is still under quarantine and needs to continue to it’s preventive measures. The warning from the head of WHO chief on a global pandemic is enough reason to cause hysteria.
The stock markets seem to think otherwise. The S&P 500 index plunged by 4.3% with a huge gap on opening bells; it has dropped 12.1% in a week.
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Moreover, the rush towards FIAT and the fear is so strong that Gold prices nearly budged. Nevertheless, Japanese Yen rose handsomely over US Dollar.
Stock Market Volatility
The volatility in the stock market reached a 2-year high signifying extreme fear which has followed a brief period of greed. Dan McArdle, the co-founder of Messari notes,
S&P weekly candle looks like a whale dumping a low-liquidity altcoin market:
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As Alex Kruger reminded one of the recent dump in matic, he tweeted.
It has happened. Today is the day the Nasdaq looks like Matic.
While the percentage of drop in Matic was extremely high, in a leveraged (50x-100x) environment with options and futures like in the stock market, a 12% fall is disastrous as well.
Furthermore, Bitcoin [BTC] and the crypto markets which has remained uncorrelated with the global issues showed signs of holding above bullish support.
The price closed above the 200-Day Moving Average keeping the bullish case alive. The volume of the pullback has however been on the low side which could be a reason for caution
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