Stock markets, gold, oil prices, national currencies suffered last week from the impact of coronavirus. Bitcoin followed, with the biggest daily price drop. The March 9-15 recap by BTCMEX.

Economies all over the world continue to suffer from the impact of COVID-19 pneumonia outbreak. The whole countries are going on lockdown, central banks cut interest rates, stocks trigger circuit breakers. Gold is down. Coronavirus hit everything from stocks to Bitcoin. Find the details in Coronavirus special on BTCMEX.

For the second time in its history, the New York Stock Exchange stopped trading when a market drop triggered the exchange’s internal circuit breaker, shortly after 9:30 am on March 13. The system was implemented after the Black Monday stock crash of 1987, when major exchanges fell 20% in one day.

Shortly after cutting the interest rates by 0.5%, the Federal Reserve of America announced the 1.5 trillion USD injection to support the trembling financial system.

These changes are being made to address highly unusual disruptions in Treasury financing markets associated with the coronavirus outbreak.

New York Fed said in the official statement

Meanwhile BTC/USD price suffered a huge volatility resulting in the biggest daily price drop in Bitcoin history. The March 13th, 2020, drop occurred on the highest volume spike seen since February 2018 and it pulled the price below key supports at $6,800 and $6,400 to a new 2020 low at $5,713. According to the experts, the steep correction in the US stock market together with a lack of buying demand as Bitcoin’s price fell to the low $5,000 levels ultimately led the price to decline to $3,600, triggering mass liquidations on some famous crypto derivatives exchanges.

The reason it will crash hard is because a lot of the venture capital, corporate investments and private investment from individuals that is based on cheap money and disposable income and excess cash in portfolios, etc., like in any other part of the economy, will dry up.

Explains Andreas Antonopoulos

The Ethereum co-founder and the founder of Cardano, Charles Hoskinson, is convinced that the economic order of the 20th century is now dead. 

What we are looking at right now is the unraveling of the economic order of the 20th century… Winners and losers that had certain assumptions about how power should work, how money should work, how credit should work, how finance should work, how information needs to flow. And this economy was sustainable and stable when the information was not instantaneous. And when it was totally acceptable to have empires, meaning one or two nation-states being supreme above all others and establishing all the rules and regulations.

Despite the global economic meltdown, the number of crypto wallets containing one Bitcoin or more continues to rise. According to the research conducted at the Glassnode, since March 2019, the number of Bitcoin wallets holding one or more bitcoins added more than 60,000 addresses.

The investors are extremely anxious about the markets, everybody is selling everything and losing on their equity portfolios, just like it was seen during the financial crisis of 2008-2009. Experts predict that Italy is likely to become the first country to enter the extreme market crisis, as well as the markets to fall a lot more in the nearest future. More measures are to be taken by the fin regulators all over the world.

These are times when cryptocurrency markets are tested along with the central banks’ regulations and the traditional financial system.