According to Bloomberg, the Dow Jones Industrial Average fell below $24,000 Monday afternoon to a low of $23,923.88. The Dow Jones Industrial Average fell over 1600 points today as most gains were erased from this year. Gold value rose as treasuries rallied.
Stocks sold off after 3pm, the Dow began to fall over 800 points in 10 minutes with a quick rebound short after. “This is classic risk off that may not end any time soon,” says Win Thin, head of emerging-market currency strategy at Brown Brothers Harriman.
“I think sentiment was a little too optimistic,” said Brad MCMillan, chief investment officer for Commonwealth Financial Network. “What was driving the market up in January? It wasn’t the fundamentals, as good as they were, it was excessive confidence.”
Bitcoin value fell below $7000 in the afternoon and bounced back shortly after, reaching over $7300. Investors remain skeptical of the cryptocurrency market due to many banks refusing to allow cryptocurrency to be purchased via credit card. Increased regulation and possible price manipulation leads many to fear cryptocurrency. Recent instances where cyber hackers focused on cryptocurrency exchanges and investor digital wallets have also forced many to abandon ship on the cryptocurrency bandwagon.