Investors have nowhere to hide during the ongoing sell-offs on international markets after the Bitcoin and other cryptocurrencies were also hit.
The cost of the Bitcoin, the largest digital currency, collapsed by 7% to its lowest level since mid-August, but later regained some of its losses. The competitive digital currencies, such as Ether, Ripple and Litecoin reported a more significant depreciation of 11.3%, 11.5% and 10.5%, respectively.
The growing institutional interest in the cryptocurrencies has led to their correlation with traditional types of assets, although this trend is not expected to continue.
The largest sale of shares since February has covered both the United States on Wednesday evening and Asia on Thursday, with most major indexes declining by around 4% and Shanghai Composite ended the session on a nearly four-year low. The effects are also felt in Europe where the pan-European Stoxx 600 index fell by nearly 1.7%.
The concerns about the US-China trade war, the yields on 10-year US bonds reaching its peak in 2011 and the Federal Reserve’s monetary policy to raise interest rates, have contributed to market concerns.
The cryptocurrencies have wiped out over 600 billion USD since the beginning of the year. This is mainly because they failed to spread worldwide in the face of a series of hacker attacks against cryptocurrency exchanges and the increased regulatory control over the sector.