After originating from China’s Wuhan, Coronavirus continues to spread all across the globe. Coronavirus outbreak has so far claimed several lives and also affected the economic growth of many countries. China left no stone unturned in containing the virus that involved the lockdown of Wuhan, which is the epicenter of the disease.
Amid this difficult time, Nexo’s “Earn Interest” rates continue to remain stable at 8 percent. Nexo has emerged as one of the leading platforms for instant crypto loans. It is the only blockchain organization that offers its services in more than 45 fiat currencies and over 200 jurisdictions. The organization offers digital asset holders instant reach to cash and retaining ownership of their assets.
Nexo has explained the series of events that have surrounded the negative market trend and how the organization managed to retain its outstanding services.
Coronavirus’s role in the recent market fall:
Equity investors enjoyed a great time since the year 2009 and the leading indexes scaled the new all-time high on an everyday basis. But, the grave threats posed by the lethal Coronavirus led to the recent downward activities in markets all across the globe. It is worth noting that Coronavirus has already infected a whopping 1, 11,500 people and 1,693 in the last 24 hours only.
The virus has killed more than 3,800 people, which include 79 patients. The situation continues to remain grim in China. The virus has picked up a pace and spreading at a rapid rate in different parts of the world. The highest number of cases have been registered in Iran, with 595 cases that emerged in the last 24 hours only.
Oil price war:
Fresh tensions have surfaced between the two largest oil exporters, namely Saudi Arabia and Russia. UAE is in favor of increased production cuts among OPEC nations and Russia plans to support prices amid the Coronavirus outbreak. A consensus has emerged among the OPEC nations, but Russia has decided not to support the plan. It said that from April 1, all parties could produce as much as they like. The situation has led to a price war, as Riyadh responded by enhancing extraction and offering its crude at a major discount.
Rally on government bonds:
As equities registered a sharp fall all across the globe, investors decided to invest in government bonds as that has emerged as a safe haven for them. It led to a significantly high rally for the US 10-year Treasuries in more than 10 years.
Impact on commercial banks:
The current atmosphere inflicted a negative impact on commercial banks. And, as the long term yields are declining, the banks’ profitability has also declined.
Crypto market:
Despite the cryptocurrency’s unstable nature, a large number of digital assets showed stability during this time when the share market witnessed a huge fall. Though BTC received a hit and a large chunk of this year’s gains were wiped out, but returns of biggest crypto assets are still in positive zones.