Coronavirus infection has had a major impact on the stock and cryptocurrency markets. The S&P500, which includes the 505 largest global companies whose shares are traded on US exchanges, fell to record 2,237 points, although then it increased to the current level of 2,940 points.

The S&P500

In March, the BTC rate fell to $3,800 (-50% per day). At the moment, the price has recovered to the level of $9,200 and even tested the upper limit of $10,000. The value of Bitcoin could continue to grow thanks to a halving, however, in the current situation, the likelihood of a rise in the price of the cryptocurrency, which was expected by the fall, is offset by the impending liquidity crisis in the markets.

the BTC rate fell to $3,800 (-50% per day)

The second wave of the crisis is likely to affect all areas of the business, reducing purchasing power in the consumer market. The investment market will experience this in the form of a reduction in private participation in it, while large investors will turn their attention to the cheaper securities market. Despite COVID-19, the most serious consequences for the cryptocurrency market may come from the manipulations of large players. In view of this, there is a possibility of selling large volumes of coins, which has already significantly affected the market mood and the price of BTC in the last few days.

The second wave of the crisis

At the moment, there are two trends that indicate the likelihood of such an outcome:

1. second pandemic wave;
2. quarterly reports that could hit the S&P500. It will include three months, most of which were quarantined. It is expected that the results will be very negative.

There is a risk of a repeated stock market crash.

There is a risk of a repeated stock market crash. Despite the fact that the correlation between the S&P500 index and cryptocurrency quotes is high, these are still different assets by nature. The collapse of the stock market will be a good investment opportunity to buy the main digital currency - Bitcoin.