COVID-19 Stock Market Selloff Leaves Bitcoin Unfazed

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Global stock markets saw a selloff on Monday which at first seemed to drag crypto markets down with it. By Tuesday morning though, the Bitcoin price had recovered and seemed totally unfazed by the COVID panic that spread across the globe. The world’s biggest crypto traded above $13k once again ($13,151).

US Infections Soaring

In the US and Europe, the onset of the colder autumn and winter months means the number of corona infections is rising rapidly. In the US, the seven-day average of Covid-19 infections neared record numbers whilst most major European nations are considering a renewed lockdown.

Global corona cases up, Global equities down.

Dow slips 700 points
German DAX down 3.5%
Software company SAP cracks 20%

Lockdowns, shutdowns and curfew in France, Italy and Spain..

— Anisha Jain (@_anishaj) October 26, 2020

The risk of a new total lockdown is increasing as the number of infections continues to soar. The global stocks are seeing uncertainty which is something financial markets don’t like at all. Furthermore, US President Donald Trump cannot seem to find agreement over a second corona support package for struggling Americans.

SAP and Germany

Over in Europe the downward trend of the German DAX was quite striking. Because of a profit warning by technology group SAP, the German stock market ended the day almost 4% lower.

#SAP now -18.2% ON THE #DAX-FLOOR!

This is a massive hit - Billions (€31 billion so far) wiped out today! https://t.co/rtVfqPyf3C

— Lars Pellinat (@Lars9596) October 26, 2020

Just as most other European stock markets, the DAX is still down for the year. Check out DEGIRO if you’re interested in stocks.

Bitcoin unfazed

Crypto markets on Monday seemed to be dragged down by the stock market pessimism as well. However when Tuesday morning came around, Bitcoin had mostly recovered and was trading above $13k again.

At the time of writing, the best known crypto is still up 12% in the past week, better than any major stock market.