Covid-19 has infected the markets
It's not just Bitcoin which has crashed. Bitcoin itself is correlated to the global economy and to the stock market which means Bitcoin (and crypto in general) are not so called "non-correlated assets". The stock market has crashed more in one day since the crash of 1987. Why is this happening?
In order to effectively stop the coronavirus (COVID-19) it requires mass quarantines. I know that hardcore deontological libertarians will make the statement that this violates principles. While I do not claim to be a libertarian in the deontological sense, I do consider myself a consequentialist. Consequentialist libertarians who are concerned with saving the most lives could see from the data (Chinese, South Korean, etc) that the way to contain and stop the spread is mass quarantines.
The problem with mass quarantines is that it shuts society down for months at a time. It might take a full 3 months before we get over this. During this 3 months 1 out of 2 people we know may have been infected with the coronavirus (COVID-19) and among those 10 to 20% will be hospitalized. This is a lot of people who will be sick and a lot of strain on hospitals and for this reason in my opinion we have to make difficult decisions.
To delay the spread means taking self isolation seriously now. Which means closing public schools across the country, stopping big sporting events or sports in general, stopping all mass gatherings, and telling the most vulnerable among us to literally stay inside their house for as long as a month or two. The virus can remain in the body for over 30 days so 2 weeks may not even be enough.
For this reason the markets are collapsing. For people lucky enough to have cash sitting in bank accounts perhaps its an opportunity to buy cheap stocks. For the vast majority of people it's going to be about how to survive these next few months (literally and financially).