Chinese Covid-19 Protests Rocks Stock Markets And Crypto, Oil Drops

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Last Updated on 29 November 2022 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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Stock markets in Europe, Asia and the US were subdued on Monday because of the uncertainty over the massive anti Covid-19 protests which have erupted in China and are spreading like wildfire. If these protests last, they could impact global supply chains and cause a market crash.

Crypto markets were trading mostly lower as well at first, with new warnings over a possible new Bitcoin crash to the bottom. By Tuesday morning, Bitcoin was stabilizing around $16,500 and Asian stock markets rose again after Beijing sent a large police presence to the cities.

Katrina Ell, senior economist at Moody’s Analytics Inc., said:

One risk in China is that Beijing’s ongoing policy of Covid-zero mobility curbs is an impediment to stabilizing domestic demand.

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FTX collapse

The newest protests in China, which started after the events at an iPhone factory last week, could push crypto markets further to the bottom. In the past month most major digital coins were already down some 20% because of the collapse of the FTX platform of Sam Bankman-Fried.

November has in this manner been the worst month for Bitcoin since June 2020. On top of that, it was, once again mostly because of the FTX scandal, the worst month of November on record for Bitcoin so far.

There is growing concern on social media that a renewed stock market and crypto market crash could cause Bitcoin to fall to record lows, with some reports quoting $5,000 as a possible new support line.

The only good news to come out of the recent Chinese protests were the drop in oil prices. Uncertainty over the future situation in China, the world’s biggest importer of oil, stoked concern over the outlook for demand and sent the price of fuel to its lowest level for the year.

olegkrugllyak / Depositphotos.com