The share markets crashed suddenly a few days ago, leading to a shocking drop in the prices of cryptocurrencies. According to the US Federal Reserve reports, the stock market crash led to a sharp rise in the sale volume at the bond market, which in turn raised the price of the safe-haven asset of the financial reserves that is the US Dollar. The benchmarks in Japan and South Korea ended up on either side of flat during the morning session of the trade. Simultaneously, Hang Seng of Hong Kong dipped by about 0.8%, thereby pulling the Asia-Pacific stocks down by about 0.2%.
The king of cryptocurrencies, Bitcoin, plummeted by almost 30% overnight, and its price now stands at $30,000. The stock futures of the US dropped below the flat and the price of commodities witnessed a sharp loss while the US Dollar gained considerably in price overnight. Rob Carnell, the famous ING economist, said that the recent crash in the share market should lead to higher bond yield and an increase in the US Dollar value. The benchmark yield of the 10-year treasuries of the US increased by 4.1 base points to 1.6830 percent right before dropping to 1.6676 percent during the trading session in Tokyo. Amid the crash, the US Dollar value managed to rise to $1.2183 for 1 Euro.
The incident that triggered the drop in cryptocurrency price is the strict restriction imposed by the Chinese government upon financial institutions for barring crypto trading services. Several trading platforms across the world reported major outages during the cryptocurrency price crash. The price of Ethereum fell by almost 50%, and institutions like IPOs, SPACs, Tesla, and ARK Innovation lost their bid. Industrial commodities like crude oil and Dalian iron ore suffered a steep decline in price as well.
