After Russia’s announcement that it would not join other oil producers’ proposed output reduction, the markets tumbled into a freefall on Monday. Crude oil futures, stocks, and bond yields all fell dramatically, Business Insider reports. As that widespread sell-off was occurring, the cryptocurrency market responded by dropping $23 billion in value.
OPEC oil producers had sought an agreement to lower production to stabilize prices amid a decline in demand caused by coronavirus fears. Russia balked at the proposal, setting off concerns of an imminent oil price war and market glut. As a result of those fears, crude oil futures opened down 30 percent. Stock prices for major producers also fell, with BP, Premier Oil, and Dutch Shell all seeing double-digit declines in their stock values.
Swissquote Bank senior analyst Ipek Ozkardeskaya blamed the widespread crash on the Russians:
"Russia punched investors in the face as it refused to follow OPEC with further production curbs to match the slump in oil demand caused by the coronavirus breakout.”
Many investors responded by moving into U.S. government bonds – typically considered a safe haven. That led to dramatic price increases for bonds and declining yields. Meanwhile, cryptocurrency markets provided no shelter either, as total market capitalization dropped by 9 percent in less than one day.
Amid the panic, one analyst suggested that investors have “no place to hide.”