The US stocks benchmark S&P 500 could fall by as much as 40 percent as the Coronavirus pandemic spreads further, according to\u00a0Scott Minerd of\u00a0Guggenheim Investments. If the chief investment officer is correct, then crypto tokens like bitcoin could also plunge massively heading further into this year.<\/p>\n
The global crypto market lately fell and recovered in tandem with the US stock market. A study conducted by Binance cryptocurrency exchange found<\/a> that leading token Bitcoin formed a modest positive correlation with the stock market in the first quarter. Excerpts:<\/p>\n “In the first quarter of 2020, the bitcoin price was down by 10 percent, while the S&P 500 displayed a [negated] 19 percent return. Their correlation was relatively high (0.57), which is explained by a similar pattern in daily business day returns.”<\/p><\/blockquote>\n The uncanny resemblance in the moves of bitcoin and S&P 500 became sharper against the backdrop of COVID-19<\/a>. The fast-spreading novel Coronavirus forced businesses to either shut down or go on an overstretched loss-making standby, causing mass layoffs in the US.<\/p>\n Something to keep in mind as joblessness surges, as we debate how aggressively the U.S. should try to get companies to maintain payrolls:<\/p>\n People are incredibly resilient to negative life events, like widowhood. But they are uniquely "un-resilient" to long-term unemployment. pic.twitter.com\/FpF3hF1kpO<\/a><\/p>\n — Derek Thompson (@DKThomp) April 5, 2020<\/a><\/p><\/blockquote>\n\n