Putin made another wave of Covid-19 in Russia. Endangered economy and Bitcoin
Coronavirus infection had a significant impact on the stock markets and cryptocurrency markets, especially the Russian economy. And the situation can get worse. A second wave of Covid-19 diseases is possible in Russia from October to November, President Vladimir Putin said during a meeting on the sanitary-epidemiological situation. The head of state called on the Ministry of Health to be prepared for such a development of events and announced the need to begin preparations for restoration of medical facilities after the pandemic.
“To gradually get out of the constraints that we still live to a great extent today, we have to think about what the experts are talking about – both those who are present here and their colleagues abroad, that there may be another wave, which it is possible somewhere on autumn, late October – November. We should also keep this in mind and be prepared for such a development of the situation, "Putin said.
A new round of coronavirus infections is also possible in other countries. For example, yesterday, May 21, the Minister of Economic Recovery in Japan, Yasutoshi Nishimura, warned that a second wave in the country is inevitable. For this reason, the authorities intend to do everything necessary to reduce the scope and consequences of this, Tass overhears
“The second wave will surely happen. But it's important to do everything so that the size of this wave is small, "Nishimura stressed.
Similar warnings regarding the United States were previously made by the Director of Centers for Disease Control and Prevention (CDC) Robert Redfield. According to him, the second wave is likely to come in the winter during a seasonal outbreak of influenza. In addition, the consequences may be stronger than with the first, as it will lead to an "unthinkable burden" for health care.
At present, 326,000 cases of Covid-19 infection have been detected in Russia, 8894 over the past 24 hours. Nearly 100,000 people recovered, 3,249 died.
The coronavirus pandemic hit the economy and as a result of the stock market. The S&P 500 index, which includes the 505 largest companies whose shares are traded on US stock exchanges, fell to a record low of 2,237 points. However, as countries began to lift the restrictions, this value recovered to the current level of 2,941 points.
This fall has affected the cryptocurrency market. On March 13, the Bitcoin rate fell to $ 3,800, after falling by more than 50% in one day. So far, the coin price has recovered to $ 9,100, twice understood over $ 10,000.
The price of the digital main currency can continue to grow thanks to the halving, the effect of which is expected closer to the fall, admitted Nikita Zuborev, senior analyst at Bestchange.ru. But he noted that cryptocurrency price appreciation, if it does, is likely to be offset by an imminent liquidity crisis in all markets.
“According to our ideas, it is quite possible that there will be a second crisis wave that will primarily affect the purchasing power of the consumer market. This will pull all other business areas. It is nearing autumn that we expect these consequences to begin. Investments at such a time can be significantly reduced for individuals, and some of the large investors' funds will be taken over by the cheaper securities market. There is serious uncertainty in the market. If the second wave of the epidemic occurs in a number of economically large countries, the severity of this crisis and its consequences will grow proportionally, ”Zuborev suggested.
He noted that despite the possible intensification of the crisis, the most serious risk to the cryptocurrency market is the possible manipulation of major players. This week, moreover, coins that were minted during the rise of Bitcoin began, when only a narrow circle of people – like-minded Satoshi knew about it – began to move. Against this background, there is an opportunity to sell large volumes of coins, which has already affected the market sentiment and the price of BTC in recent days.
“You must always remember that more people died from the second wave of the Spanish woman than from the first. If the reaction to the second wave is similar, it will shake the economy very much. There are no business stocks, all pillows are eaten up. The crypto market in the Russian Federation is already sick of state initiatives, but if we talk about the cost of crypto assets, it is likely to correlate with the world situation. The second wave will begin – we will see oil below $ 10, the Dow Jones index below 10 thousand. Plans for more growth must be postponed to better times, ”predicted Mendeleev.
If the fears of Russia's president are confirmed, the second wave could affect the Russian stock market and weaken the ruble, says EXANTE managing partner Alexei Kirienko. Nevertheless, even the weakening of the national currency cannot stimulate the growth of the Russian interest in cryptocurrencies. So far, bitcoin is of interest to an extremely narrow layer of Russians. One reason is the low confidence due to significant volatility and negative attitudes of legislators.