Well yesterday we saw a sudden 6% decline as we were trading close to that $10,000 resistance.
So what happened?
Well the stock market sold off. Global equities across the board cratered and investors moved into traditional safe havens like bonds. Crypto is still a risk asset so it sold off as well.
BTC initially showed resilience by holding above $9,700 during the Asian and European trading hours. However, the sell-off in U.S. equities was too so volatile that crypto market traders followed suit.
To put it into perspective
The Dow Jones Industrial Average (DJIA) fell by 1,800 points on Thursday, reviving memories of multiple 1000 point drops seen during the first half of March.
These charts are starting to look pretty similar. The real question is stocks are seeing most of the losses erased this morning, but BTC is not seeing the same.
Thanks for the report, Cryptictruth. I am more concerned with the long run and wealth preservation. Are you still buying or waiting for a better price?
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Personally I’m waiting.
I was really disappointed to see the drop yesterday. It used to be that the crypto market would do the opposite of what the traditional market was doing. That hasn't been the case lately. They have been much more closely aligned and I am not sure I like it.
Yeah I was anticipating that they would drop with stocks, but I'm disappointed because crypto is the anti-inflation asset that's not impacted by the fed. In my mind people should be flooding crypto markets...
Totally agree.
In times of such extreme volatility and uncertainty in the traditional markets, I don't think we can expect any specific correlation between them and crypto. Too much money is being lost in traditional markets and due to job losses to allow people enough money to gamble on crypto.
Good point. I had hope that people would move into stable coins and eventually other currencies as the fed keeps printing and devaluing currency.