Bitcoin Continues On Its Recovery Path as the Dow Sees Its Worst Financial Run in Over a Decade
Market data released recently by various mainstream media outlets has indicated that the Dow Jones Industrial Average is currently suffering from one of its worst economic runs since the 2008 market crash. To be even more specific, statistics show that the Dow has lost over 1,650 points (or about 7 percent) in the week gone by (with no signs of recovery in sight).
Things Look Grim For The Stock Market
According to a recent report released by CNBC, this latest crash follows the Federal Reserve's decision to hike its interest rate by 0.25%. Also worth noting is that along with the Dow, the S&P 500 too has fallen by 2.1 percent over the past few weeks (with the exchange currently sitting at 2,416.58).
Similar performance figures were showcased by the Nasdaq Composite — with the financial body losing a whopping 2.99 percent to close at 6,332.99 earlier yesterday.
As things stand, both the Dow and the S&P 500 are currently seeing red, with both of the aforementioned trading bodies down by at least 9%. As a result of this, many analysts are claiming that this has been the worst December for the two entities since 1931 (the year of the Great US financial depression).
In regards to the entire matter, Komal Sri-Kumar, a well respected economist and head of Sri-Kumar Global Strategies, was quoted as saying:
“There are lots of signs now suggesting that we may be looking at a recession. I would say that the risk here is that a whole lot of confluence is taking place: The trade was is not going to end soon, and the Fed totally misjudged the market in suggesting two more rate hikes next year.”
Bitcoin Continues To Prosper In Spite Of Tumbling Stock Market
After nearly a decade worth of bullish equity market conditions, it now appears as though the Dow could be on the brink of another recession. However, despite the stock market continuing to struggle, it appears as though Bitcoin is experiencing a resurgence of sorts. With that being said, it is still worth noting that the premier alt asset is down by more than 75% since hitting its ATH of $19,500 over a year back.
At press time, BTC is continuing to linger around the $4,000 threshold after having dipped to an annual low of $3,000 a fortnight back. And while many economists have continued to claim that the only way Bitcoin could reclaim its former glory is through the entry of institutional investors (into the crypto market), there are people like Stephen Pair (the CEO of Bitpay) who firmly holds to the belief that a more user-driven approach to bitcoin adoption can help the premier currency once again shoot up in value.