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Today was one of the worst single-day trading sessions the U.S. stock market has ever seen, with the benchmark indices erasing all of the gains that were incurred during the rally seen last Friday afternoon. This has led the crypto markets to similarly decline, with Bitcoin once again breaking below $5,000.

It now appears that the global markets and cryptocurrencies alike could be in for a rocky few months ahead, with President Trump offering a stark warning on just how long it may take for the spread of the lethal Coronavirus to be curbed.

This may not bode well for the crypto market either, which has been acting fully as a risk-on market throughout the past several days and weeks, which is a phenomenon that is unlikely to end anytime soon, according to analysts.

After taking a nonchalant approach to the Coronavirus when it was just starting to show signs of spreading in the U.S., federal, state, and local governments are all rapidly ramping up their efforts to prevent the pandemic from growing at its current rates.

These efforts have led to a significant change of lifestyle for those living in the U.S., with similar – and even more extreme measures – being taken in other countries.

Naturally, this has spooked investors, who have further perpetuated the multi-week selloff today, pushing the Dow Jones, S&P 500, and Nasdaq to all crater over 12 percent.

This downtrend also led Bitcoin and the aggregated crypto market to sink, with BTC plummeting back below $5,000 while many major altcoins have posted losses of 10 percent or more.

In a press conference today, President Trump explained that the efforts to slow the spread of the virus will take months to be effective, potentially opening the gates for significantly greater economic impacts in the weeks ahead.

Bitcoin’s recent price action and close correlation to the global markets has destroyed the narrative regarding its status as a safe-haven asset, leading many investors and analysts alike to forecast further downside ahead for the entire crypto market.

Hsaka, a well-respected cryptocurrency trader, explained in a recent tweet that he believes Bitcoin will continue tracking the benchmark indices in the days ahead, meaning that further downside could be imminent.

“SPX erased all the gains for the day. Expecting BTC to follow suit.”

Unless there is some drastic shift in the global markets that is induced by a sudden and sustained decrease in the spread of COVID-19 – like that seen in South Korea – it is a strong possibility that the markets will continue to decline in the days, weeks, and even months ahead.

The post Intense stock market meltdown suggests the crypto market has a rough road ahead appeared first on CryptoSlate.

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