March 2020 was a brutal month for capital markets. Traditional equity markets saw global losses surpass $12 trillion, with commodities and cryptocurrencies also seeing their own seismic drops in valuation.
At the epicenter of all this financial turmoil is the Coronavirus pandemic. The virus has so far led to more than 1.3 million reported cases, over 75,000 deaths and social lockdowns across the globe.
In this March 2020 focused analysis, we take a closer look into how far crypto and traditional markets fell, which assets have so far bounced back after the crash, and finally, which investments have managed to survive the market meltdown.The month capital markets collapsed
In the third month of the new decade, financial markets crashed in unison around the world. While Bitcoin fell by a quarter, other global assets like crude oil (-54%) and the S&P 500 (-13%) also saw crippling losses as the first pandemic in decades was priced into capital markets.March Low: Lowest traded price in March
Looking at the red bars—showing just the percentage drop in price from March 1st to the March low—Bitcoin together with crude oil saw a 50%+ correction to the downside, with the S&P also dropping by 25% over the month.March Bounce: Price change between the March Low and the highest traded price before 1st April
However following the panic-fuelled market crash, markets did also bounce back by the end of March. Bitcoin in this category led the way, seeing its price appreciate from a low of $3,900 to hit a high of just under $7,000 according to data from the Kraken Futures – Real Time Bitcoin Index.
The 79% bounce for the biggest cryptocurrency was also matched by Ethereum (+71%) and to a lesser extent by crude oil (+32%), and the S&P 500 (+19%). As markets rallied, even gold saw a 13% move to the upside, after only falling a modest 7%. Gold seemed to be the only good news in a sea of double-digit declines as the ...