Stocks and Bitcoin go opposite directions for week
Some argue that crypto and stocks are correlated, but that wasn’t the case this week. In fact, since March 13, stocks have dropped while Bitcoin has slowly recovered.
The end of the week brings about more mixed results for markets everywhere, with the Dow Jones Industrial Average having dropped by more than 400 points since yesterday.
It ended trading last Friday at 21,636. Since dropping on Wednesday morning trading this week, it hasn’t fully recovered and is now at just above 21,000. That’s a five-day decline of around three percent.
By contrast, crypto is relatively stable and isn’t moving in the same direction as stocks. On Monday, the price of Bitcoin was below $6,000. It’s currently trading at between $6,700 and $6,800.
That’s part of a larger pattern since March 13, a notorious day for most digital currencies.
During that time, many of the world’s top digital tokens reported record losses, with assets like Bitcoin falling as low as $4,800, a $3,000+ drop from its March 12 price of $7,900. As of today, it’s recovered two-thirds of that decline.
The mentioned dates bear different numbers for the Dow Jones. On March 12, the market was at 21,200 points. The following day, when most cryptocurrencies were down, the Dow shot up by more than 2,000 points to an impressive 23,185.
The correlation between Bitcoin and stocks is hotly debated correlated, though this data suggests otherwise (at least for the short-term), and each market appears to possess its own distinctive behavioral patterns.
Leaving aside crypto and stocks, the big end-of-week winner this time around is oil. Following yesterday’s news that Russia and Saudi Arabia are looking to curb their oil production rates, the commodity is now at $28 per barrel—a $4 spike in the past 24 hours.