S&P 500 Looks Like 'Bitcoin Dump' with $3.4 Trln Erased in Days: Analyst

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Fri, 02/28/2020 - 16:45
Alex Dovbnya
No, it's not a Bitcoin chart. The coronavirus scare brings crypto-level volatility to traditional markets
S&P 500 Looks Like 'Bitcoin Dump' with $3.4 Trln Erased in Days: Analyst
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While Bitcoin hodlers are no strangers to volatile price moves, it clearly doesn't apply to U.S. stock market investors who are currently caught in the worst sell-off since 2008. 

Now, all assets are tanking across the board, and analyst Brian Patrick Eha noticed that the S&P 500, the index that is used to track large-cap equities, resembles your casual Bitcoin dump.      

Stock prices
image by @brianeha

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Trillions of losses 

Over the past six days, the S&P 500 erased a whopping $3.4 trln due to a growing number of coronavirus cases around the globe. To put this into perspective, this is 21.7 times the current market cap of Bitcoin. As reported by U.Today, this is the fastest correction in the entire history of the U.S. stock market. 

Hungry bears can't get enough of this carnage with the benchmark index taking yet another three percent hit on a bloody Friday.  

It seems like traditional investors do not have the hodl mentality of the cryptocurrency community that can stomach 80 percent drawdowns, which is exactly what happened to BTC in 2018.      

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Gold failing as a safe haven

With equities getting massacred the whole week, one would normally expect gold prices to rally. However, precious metals are now even more bruised than risk-on assets, with gold and silver plunging four percent and six percent respectively. 

Treasuries appear to be the only asset class that managed to stay above the fray, which is reminiscent of the 2008 financial crisis. The yield on the 10-year note has recently witnessed a sharp drop and came close to reaching its all-time low. 

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.