Panic Selling: The Financial Impact and Potential Benefits of the Coronavirus Pandemic
As the Coronavirus pandemic continues to make its way across multiple countries and cause general panic that is resulting in the shutting down of public events and quarantining of the public, we can see a massive impact of this disease in the financial sector as it affects the stock market and cryptocurrency markets as well.
At the time of writing, Bitcoin has officially tumbled down to a price of $4,100, which is the lowest we have seen over this year and most of last year. While there is nothing to do about the volatile swings in both the crypto market or the stock market, investors can still prepare for the future and take the opportunity to examine today’s market, its root causes, and potential benefits. Here is what you need to know through all of the hype.
The Coronavirus Is Still Spreading Concern (and Causing Equally Concerning Performance)
Coronavirus cases are on the rise and the stock market is on the fall, with the NASDAQ, Dow, and S&P falling well over 9 percent in what is described as the worst blow that the market has faced since the Black Monday crash in 1987, which can prove far more detrimental to the economy than the most recent recession of 2008.
Investors are continuing to engage in panic selling as fears of the Coronavirus’s spread grows, which has caused equal instability and collapse in the cryptocurrency market. For individuals everywhere, the focus has turned to pulling out their money as soon as possible as conditions worsen both in the real world and in the stock market. But does this mean that everything looks bleak for our future?
Where Disaster Lies… So Does Opportunity
When the market dips, it can be a natural reaction to want to pull your investments out amidst all the chaos, especially when it comes to crypto. That said, the biggest advice making its rounds in all of this chaos is to avoid panic selling. Unless you need access to funds right away or you have expendable assets, it may be better to wait until you recover some of your assets’ value before you consider selling them off again (rather than assuming that the market is in a state of ruin).
Granted, this advice is typically given to those who actively trade stocks. While crypto is a relatively new market and there will always be a number of investors and analysts saying that it is inevitably doomed to fail, however, this is all speculation. It is just as likely that Bitcoin and other assets will rebound and recover as the stock market does too.
While you hold onto your other assets and wait for the market to recover, this is also the perfect opportunity to purchase crypto at extremely low prices while the market is bearish. Where one sees absolute disaster, others see a golden opportunity.
The Coronavirus is certainly concerning, but panic often leads to poor decision-making. Take the time to understand how the disease is affecting the market, what your personal response should be, and where you may be able to benefit from the situation. Your investments will thank you.
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