The turbulence seen within the stock market over the past several weeks has sent shockwaves across virtually all markets, leading Bitcoin and other digital assets to post unprecedented losses throughout the past several days and weeks.
This intense global downturn has been fueled by the Coronavirus pandemic, which has struck fear into the hearts of investors, creating a hysteria-driven selloff of all “risk-on” assets.
Today, however, the U.S. stock market was able to post a massive 10% rebound following President Trump’s decision to declare a state of emergency, a declaration that frees up a significant amount of funding to help states and municipalities curb the rapid spread of the deadly virus.
This rebound has also helped Bitcoin recover some of its recent losses, although analysts are still cautious about getting too excited about any type of mid-term trend reversal.
Stock market sees the largest single-day climb since the 2008 financial crisis
Following today’s White House press conference in which the decision to declare a state of emergency was announced, all the major benchmark indices rallied – with the Dow, S&P 500, and Nasdaq all climbing over 9%.
This movement is unprecedented and seems to suggest that investors believe that the new funding that was freed up by the state of emergency declaration will be enough to contain and curb the rapid spread of the Coronavirus.
Bitcoin – which is currently recovering from one of its largest single-day losses ever – also has been able to post some decent gains today, currently trading up slightly at its current price of $5,600.
This marks a massive climb from daily lows within the mid-$3,000 region that was set during yesterday’s crypto market meltdown.