After weeks of optimism that the Coronacrisis was over, the economic realities of mass layoffs and decreased consumer spending set in and dragged both stock markets and the price of Bitcoin down. Whereas US markets corrected some 6-7% overnight, Bitcoin saw a drop of 6% itself, which is remarkable and shows that volatility has lowered for the world’s most famous crypto currency.
US stock markets reacted negatively to the news that the US Federal Reserve’s latest forecast had turned bearish again.
Fed Chair Jerome Powell’s speech on the economy didn’t inspire any optimism about the next few quarters. “The virus and the forceful measures taken to control its spread have induced a sharp decline in economic activity and a surge in job losses,” Powell said
Mad Money host Jim Cramer stated that you should as from now “go with companies that will be able to hit their numbers regardless of how badly this economy gets hit by all these new Covid hotspots.”
The correction came at the end of a week where India showed a new growth in infection rates and the Brazilian government (temporarily) refused to report countrywide Corona numbers.
Whereas most people were starting to sound hopeful that a second Corona outbreak could be avoided, it is now starting to become crystal clear that the virus will be with us for some time to come.