Bitcoin (BTC) hitting two-month lows is nothing compared to aspects of the fiat economy — some saw their worst day since the 2008 global financial crisis.

As coronavirus panic gripped markets worldwide, so did intense bouts of volatility as various stock exchanges opened after the weekend.

Greenspan: “investors are freaking out”

On Wall Street, trading lasted just minutes on Monday morning before stocks lost so much value that risk reduction systems automatically halted all activity. 

Meanwhile, the Dow Jones saw its worst day in history in terms of points, opening down 1,758 points and in terms of percentage rivaling its 2008 performance.

In the United Kingdom, the FTSE 100 index likewise put in its worst showing since the crisis twelve years ago. 

Bitcoin investors were grappling with a similar shock to the system after BTC/USD shed 15% overnight to land at around $7,650 on Monday before bouncing higher

For Cointelegraph Markets analyst Mati Greenspan, however, traditional markets firmly held center stage. 

Referencing the VIX volatility index from CBOE, Greenspan noted that with a score of 58.29, 2008 levels of “fear” were now only a stone’s throw away. 

VIX volatility index 1990-present. Source: TradingView

In private comments, he suggested that panic over coronavirus was doing more damage than coronavirus itself. He said:

“Investors are freaking out, both over the virus itself but especially over the possible economic impact that efforts to slow the virus might have.”

Ex-Goldman CEO sees “quick recovery”

Fellow Cointelegraph Markets analyst filbfilb meanwhile called the past 24 hours a “remarkable day.”

“I fully expect it to be at mercy to the legacy system (henceforth),” he warned traders of his Telegram trading channel. 

Not everyone was so concerned. Lloyd Blankfein, ex-CEO of Goldman Sachs, which received a substantial bailout in 2008, foresaw a “quick recovery” once coronavirus passes.

“Fear can take mkt lower, but expect quick recovery when health threat recedes. Esp in US, underlying economy strong, banks well-capped, system not too leveraged,” he wrote on Twitter on Monday. 

“Unlike ‘08, will avoid systemic damage that could take years to work thru. Obviously, not ignoring tragic human toll[.]”

As Cointelegraph reported, U.S. debt alone currently stands at $23 trillion, a historic record and more than double that of 2008.