BTC - As Stocks Swoon Can Crypto Get Its Mojo Back?
Tuesday was a painful day for stock market investors, with the Dow Jones Industrial Average (DJINDICES: ^DJI) falling more than 1,275 points and the S&P 500 (SNPINDEX: ^GSPC) and Nasdaq Composite (NASDAQINDEX: ^IXIC) dropping 4% to 5%. Market participants often hope for at least a modest bounce after a tough day, but Wednesday morning didn't suggest any such relief was forthcoming. Futures contracts on all three stock indexes were down slightly as of 8:15 a.m. ET.
Some investors in cryptocurrencies have believed that digital assets would be able to provide some valuable diversification in the event of a stock market decline. Unfortunately, that hasn't been the case over the past couple of years, as the prices of Bitcoin (CRYPTO: BTC) and other popular cryptocurrencies have tended to track closely in line with the Nasdaq. Now, though, some digital investors are asking whether Bitcoin and its peers can regain the positive momentum that took them to all-time highs last year even if stocks stay mired in a bear market.
Cryptocurrencies certainly haven't escaped the rout that started on Tuesday. Bitcoin has fallen 11% in the past 24 hours and now stands just above the $20,000 mark. Ethereum (CRYPTO: ETH) is down almost 9% since this time Tuesday, falling back below $1,600 even as proponents of the smart-contract network point to the coming Merge event as a landmark moment for the digital asset.
For further details see:
As Stocks Swoon, Can Crypto Get Its Mojo Back?