Global markets face violent selloff as Coronavirus fears spread

The global markets have been rattled by the rapid spread of the Coronavirus (COVID-19), which has led the US equities markets to see an intense selloff, with the benchmark US stock indices shedding $4.3 trillion in value over the past seven trading sessions.

This intense downwards movement has marked the Dow Jones’ worst week since the 2008 financial crisis and has led many investors to forecast the possibility that the COVID-19-driven selloff will lead the markets into recession territory.

This intense selloff hasn’t been limited to equities, as Bitcoin and traditional commodities have also been caught within firm downtrends.

Currently, Bitcoin is trading down significantly from its recent highs of $10,500, with its recent capitulatory selloff to lows of $8,400 erasing a good bulk of the gains incurred throughout the course of its recent uptrend.

It doesn’t appear that COVID-19 fears have directly contributed to the crypto’s intense selloff, but it does seem as though it comes as investors flee risk-on assets in an effort to preserve their capital.