Hi HODLers,
We all know that raising interest rates are bad for risk-on assets and despite our digital gold narrative for Bitcoin, cryptocurrencies are risk-on assets.
For the past months the correlation between NASDAQ, the US technology index and cryptocurrencies has grown stronger and stronger.
As you can see below, we were all in this dump together.
Bitcoin Performance Year To Date: -21%
NASDAQ Performance Year To Date: -17%
And they said Crypto ws much riskier than stocks? Not so much it seems :D.
The interesting part came today as Cryptocurrency markets are moving up whereas NASDAQ is about to close at -2% for the day.
So what does this means?
- I would like to know if anyone has an explanation. Could it be shorts taking a breather?
- Is Crypto ahead of a future bounce? Or are we just late for the latest dump?
In any case, there are now a lot of strategists and economist predicting doom days for the economy (some talk about recession) and the Stock Market as some others think that we are in for a 50% drop as we are in a bubble.
My opinion is that this correction might continue a little bit but I do not expect to reach such low levels.
In any case, I should remind each of us that the same people predicting these doomdays, predicted a roaring economy and financial markets a few months ago.
Stay sane and prudent and keep investing what you can afford to lose.
In the meantime, keep earning ;)
