Stocks Drop Like Cryptocurrency, now WHO Head Warns of Coronavirus Pandemic

Published February 28, 2020 | Updated February 28, 2020

stock markets drop hard

Stocks Drop Like Cryptocurrency, now WHO Head Warns of Coronavirus Pandemic

“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.

sp500 daily chart
S&P 500 Daily Chart (TradingView)

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

volaility index
Stock Market Volatility Index Weekly Chart (TradingView)

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,

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.

btcusd tradingview
BTC/USD 1-Day Chart on Bitstamp (TradingView)

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.

How are you planning to maintain your investment portfolios in times of distress? Please share your views with us. 

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Nivesh Rustgi 1181 Articles
Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)
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