While Stocks Rebound, Analysts Discuss Bitcoin’s Decoupling, Gold Markets Remain ‘Under Pressure’

Bitcoin

U.S. equities markets jumped on Thursday as stock traders saw some relief after a number of weekly losses. All the major stock indexes rebounded after falling for nearly eight weeks in a row, while the crypto economy took some losses on Thursday, losing roughly 4% against the U.S. dollar during the past 24 hours. Meanwhile gold has been hanging below the $1,850 per ounce mark as Kitco’s Neils Christensen says gold markets remain “under pressure, seeing no major buying momentum.”

Analyst Says ‘Doom and Gloom’ Forecast ‘May Have Been Overdone’ Amid Stock Market Rebound

The Dow Jones Industrial Average, S&P 500, Nasdaq and the NYSE composite all rebounded in Thursday’s trading sessions. The S&P 500 rose about 2% to 4,057.84 at the close, while the Nasdaq jumped 2.7% to 11,740.65.

The Dow Jones jumped around 1.6% on Thursday afternoon, as the index recorded gains for the fifth straight day in a row. Quincy Krosby, LPL Financial’s chief equity strategist, believes the rebound may be a sign that some of last week’s doom and gloom predictions were overhyped.

“While this is an expected and much talked about potential ‘oversold’ rally, the underpinning of today’s market rise suggests that last week’s pessimism regarding the all-important consumer American may have been overdone, as well as the recession headlines,” Krosby told CNBC’s Tanaya Macheel and Jesse Pound on Thursday.

Many Believe Cryptos Have Decoupled, Alex Krüger Says ‘Worst Case Scenario for Crypto Is Here’

Meanwhile, amid the equities rebound, the cryptocurrency economy faltered again on Thursday, losing 4% during the past 24 hours of trading. Bitcoin (BTC) lost a small percentage on Thursday dropping roughly 0.7%.

Ethereum (ETH), however, lost around 6.9%, alongside a number of alternative crypto assets that suffered bigger losses than bitcoin. While stock markets have improved and crypto assets have not improved, a number of traders have discussed the crypto decoupling of stocks in terms of correlation.

The economist and trader Alex Krüger spoke about crypto decoupling from stocks on Thursday.

“The worst-case scenario for crypto is here,” Krüger said. “Apathy and decoupling. The correlation with equities is now broken. He has largely disappeared since Monday afternoon. Now stocks are bouncing back on their own. After his statement, Krüger doubled down on his comment. “Look at people who don’t trade and barely look at charts or correlations disagreeing with this tweet. That’s okay. Everyone copes differently,” Krüger added.

The bitcoin proponent Luke Martin, host of the Stacks podcast, also talked about digital currencies not bouncing back with equities markets.

“See a lot of tweets about stocks [and] decoupling crypto and crypto not bouncing with stocks,” Martin tweeted. “The charting gives a better picture of what is happening: 1/ We had high correlation 2/ Luna collapse leads to more severe crypto selloff 3/ After crypto collapse doesn’t make a difference. “

As Gold Markets Slump, Peter Schiff Discusses the US GDP Contraction and Bitcoin’s Decoupling

Gold has also not increased in value and remains under the $1,850 per ounce price range against the U.S. dollar. 30-day statistics show an ounce of fine gold is down 1.67% and 0.27% was lost during the past 24 hours. On Thursday, Kitco’s Neils Christensen discussed gold’s slump in a report that highlights the recent U.S. Commerce Department report that notes the first-quarter gross domestic product (GDP) declined at a 1.5% annual rate. “The gold market is not seeing much reaction to the disappointing economic data,” Christensen explained on Thursday.

Golden Bug and Economist Peter Schiff talked about the 1.5% drop in GDP and also mentioned that bitcoin (BTC) decoupled from Nasdaq. “The U.S. economy, supposedly the strongest it’s ever been, contracted 1.5% in the first quarter, 0.2% more than analysts expected,” Schiff said. said Thursday. “Whether [the] GDP contracts again in Q2, then the economy is officially in recession. If GDP is contracting when the economy is so [strong]imagine what happens when it’s low,” the economist added.

Schiff continued on Thursday and made sure to throw salt on bitcoin’s recent market wounds. Schiff remarked:

Is bitcoin finally breaking free of its high correlation with the Nasdaq? While tech stocks are rising today Bitcoin is falling, almost breaking below $28K. My guess is that Bitcoin will continue to maintain its positive correlation with the Nasdaq, but only when it’s falling.

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