The crypto market tanks 8.8% amid escalating macro fears and global pandemic threats

The crypto market is telling a fearful story, reminiscent of the period between 2019 and 2023. It’s Russia and Ukraine all over again, but this time with Iran and Israel – basically, the Middle East is at war. Then, there is a new virus stemming from China – again. Then, the Trump against China episode gets a sequel.

Investors are yet to learn their lessons. Some have resorted to panic trading. The crypto market is bleeding – red trading charts not seen in a while since Trump won to become the 47th POTUS. Do investors know any better, or is this going to be another economic depression?

Currently, Chinese health officials are reportedly monitoring increased cases of human metapneumovirus (HMPV). The crypto industry is already feeling it. Bitcoin fell 5% to $96,527 in Asia after reaching above the $100,000 mark earlier this week. 

In addition, Min Jung, an analyst at Presto Research, said that both the NASDAQ and S&P 500 fell more than 1% yesterday. However, this was caused by fears around the US economy as the Federal Reserve is expected to maintain elevated interest rates for a longer period.

Is HMPV a significant threat? 

During Trump’s time in office, the economy suffered from COVID-19 being touted as a new deadly virus. According to reports, HMPV is also a respiratory disease. The disease is related to respiratory syncytial virus (RSV) and has been present since at least 2001. It was first discovered in the Netherlands. Its outbreaks are prevalent during the winter months. 

According to local officials, cases have been increasing in northern China, particularly among children. The country’s Centers for Disease Control and Prevention (CDC) has cautioned individuals to take health and hygiene precautions. Still, it has disputed internet allegations of overburdened hospitals and worries of another Covid-like pandemic.

However, experts claim that the apparent increase in cases is likely partly due to new technology detecting and identifying HMPV more easily. Dr Jacqueline Stephens said, “I think we’re just more cautious of outbreaks now.”

 The senior lecturer in public health at Flinders University in Australia added, “Everyone is hypervigilant, and you hear this term human metapneumovirus, and it sounds kind of scary.”

Prof Paul Griffin, director of infectious diseases at Mater Health Services in Brisbane, said, “The challenge is at the moment there’s not much we can do except educate people [that] it’s around to reduce transmission. There’s no vaccine or antivirals, although there are some vaccines in development.”

This fear is currently leading to liquidations as people prepare financially.

The Iran-Israel conflict’s effect on the crypto industry 

The ongoing Iran-Israel conflict appears to presage upheaval in the crypto markets. Investors have expressed apprehensions about the potential consequences of the situation on crypto assets as tensions continue to escalate.

The historical conflict in 2024 has spread in two distinct phases: the first phase, which lasted from April 1 to April 19, and the second phase, which has been ongoing since July 31. 

A business publication reported that Bitcoin’s (BTC) price plummeted from $70,000 to $60,000 during the initial phase. It also stated that the decline in the price of BTC had an impact on other crypto, including Ethereum (ETH), Solana (SOL), Ripple (XRP), Binance Coin (BNB), and Dogecoin (DOGE), among others. This resulted in a $500 billion loss for the overall crypto sector. 

Geopolitical events have traditionally had a significant impact on global markets. The crypto space is no exception. For instance, the Russia-Ukraine war had an impact on Bitcoin exchange results.

According to a panel research of 20 countries from January 23 to April 16, 2022, it resulted in a 0.2% fall in crypto trading volume. On the other hand, Ukraine approved legislation legalizing crypto as a means of raising funds for their fight against Russia.

Following Iran’s missile strike on Israel, BTC’s price fell to $60,200, a 6% drop from a high of around $64,000 at the time. In addition to BTC, ETH and SOL had losses of more than 4% and 5%, respectively.

Also, Coinglass discovered that the circumstance resulted in massive sell-offs of $523.37 million within 24 hours. However, the most serious worry is the conflict’s long-term impact on the crypto market. 

It is widely held that the crypto market is currently at a juncture, swaying between bearish uncertainty and optimistic optimism. At present, the most significant uncertainty is whether these disputes will catapult crypto into the realm of economic haven or heighten concerns about market instability.

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