COVID-19 Stock Market Selloff Leaves Bitcoin Unfazed

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Last Updated on 27 October 2020 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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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).

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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.

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.

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.