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.”
Markets check: It’s a better day as stocks continued to rebound from the lowest levels in over a year.
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.
Ethereum (ETH), however, lost around 6.9%, alongside a number of alternative crypto assets that saw deeper losses than bitcoin. While stock markets have improved and crypto assets have not, a number of traders have been discussing crypto decoupling from stocks in terms of correlation.
Crypto Twitter: crypto did not decouple!
Nasdaq: +4% this week
ETH: -3% this week (-13% open to trough)
“Seeing lots of tweets about stocks [and] crypto decoupling, and crypto not bouncing with stocks,” Martin tweeted. “Charting gives a better picture of what’s happening: 1/ We had high correlation 2/ Luna collapse leads to more severe crypto selloff 3/ Post collapse crypto not making up the difference.”
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.
What do you think about the current state of markets and the economy? Let us know what you think about this subject in the comments section below.
