Bitcoin, once pitched as a non-correlated asset to more traditional markets appears to be chasing the NYSE and NASDAQ lower.
Public markets tanked yesterday, as the Dow lost over 1,000 points, and the NASDAQ Composite dumped almost 5%, becoming the single worst day for markets in the past couple of years. On Wednesday, the US Federal Reserve announced an anticipated 50 basis point rate increase – and markets rallied – as Fed Chair Jerome Powell indicated a future 75 bps increase was off the table (at least for now). Today, markets are sinking once again with the Dow currently down over 400 points and the NASDAQ losing over 2% or 300 points. Volatility seems to be the rule as markets sort out hyperinflation and rising rates – not to mention the war in Ukraine and that pesky COVID.
Bitcoin is no longer a safe haven it seems as BTC is absolutely cratering today, currently down by a whopping 9%+. Just last month, Bitcoin investors were moaning that it was down to around $43,000 from last year’s high of almost $70K. Today, the moaning must be louder.
Misery loves company, unfortunately, as it’s a sea of red for crypto markets. Perhaps crypto is more correlated than thought with traditional markets?
If you are looking for some hope in a storm of despair, check out Finder.com. au‘s prediction for Bitcoin by years’s end. Even better, 7 year’s from now the prediction has a 10X prediction.