The crypto market is pretty mixed today with some coins trading in the red, but a lot of others trading in the green as well.
After a substantial fall in the price of Bitcoin, the most important coin is struggling to recover.
At the moment of writing this article, BTC is trading in the red and the most important coin is priced at $5,360.45.
The current market drop is just getting started
Robert Schiller, the Nobel Prize-winning economist who warned last year that there could be a self-fulfilling prophecy that could end Wall Street’s longest bull run in history just said that the current market drop that is brought by the fears around the spreading of coronavirus are just getting started.
WHO announced a few days ago that the coronavirus outbreak became pandemic and all hell broke loose since then.
Potential for market disruption if high
During an interview on CNBC’s Trading Nation, Schiller explained the reasons that the fear over the coronavirus outbreak that’s dragging the stock market has not even peaked yet.
“We haven’t gotten very far into it yet. So, the potential for market disruption because of a scary narrative is quite high,” he said.
He also said that the future looks pretty scary because it’s difficult to quarantine people and prevent them from spreading the virus.
More than that, those already infected and contagious can be asymptomatic.
It’s important to note the fact that Schiller is a huge authority in the field of behavioral economics.
A recession is most likely to happen
He predicts that a recession is more likely to happen.
He believes that this is an extremely hard time for the economy and the world is facing two dangerous epidemics: the epidemic of the coronavirus, and the other, an epidemic of fear, as noted by the online publication the Daily Hodl.
“I don’t like to be a doomsday purveyor. I think that it may turn out to be overrated,” he said.
He continued and explained: “What we have now is really two epidemics. We have an epidemic of the coronavirus, but we also have an epidemic of fear based around a narrative that is not necessarily keeping up with scientific reality.”
He concluded by saying that we’re living dangerous times for the stock market.
