Crypto slump drags other markets lower in its wake

The selloff in cryptocurrencies has spread to commodity markets, and seems likely to drag equities down with it too, says Chris Beauchamp, Chief Market Analyst at investing and trading platform IG.

Crypto selloff gathers pace as Ether slips through $2000

The crypto bear market has morphed into a full-on market rout, with outflows gathering pace as key names drop to fresh multi-month lows. The week has seen Nouriel Roubini once again predict the total demise of bitcoin, and Michael Burry has added his voice to the chorus of warnings about cryptocurrencies, something that will have added fresh impetus to the selling. The asset has seen such dramatic selloffs before, and the rebound will be swift if it comes, but as silver has taught us this week it is hard to spot tops and bottoms except in hindsight.

Broad selloff takes hold across markets

The down moves aren’t limited to cryptocurrencies however. Commodities are deep in the red too, and while stock markets are calm by comparison the losses here could easily accelerate quickly. The best selloffs start when no one is really expecting one, but it seems like, as many have feared, the contagion from a crypto selloff has spread to the rest of the financial universe.