Bitcoin, Crypto Markets Experience Same Fluctuations as Stocks and Fiat Currencies
Cryptocurrencies crashed, but the same happened with stock, fiat currencies and developing countries. According to some experts, these are normal cycles that repeat themselves as years pass.
In the last days we have witnessed how Bitcoin crashed, losing $900 dollars in just a few hours. This, of course, created a massive sell off in different projects and virtual currencies.
The US Dollars, continues its upward trend and it has strengthened against other currencies around the world, including virtual currencies. Currencies such as the Argentine Peso, or the Turkish Lira have substantially devalued in the last months.
The S&P 500 Index lists the largest 500 US publicly traded companies according to their market value. This index is used to analyze the US equity markets. In the last five days it has been operating down.
Furthermore, the MSCI Emerging Market Index has also dropped for the seventh consecutive day. Now this is trading on its lowest price-to-earnings ratio since 2016.
The Indian Rupee has also lost against the US dollar, something similar to what happened to Indonesia’s Rupiah that has dropped down to 15,000 rupiah per dollar.
According To Vikram Joshi, Part Of Pulsd, Commented:
“Inflation and deflation of a bubble do not mean that an industry is not worthy. People get super excited only because hey see huge potential in a product or service. In this inflation-deflation cycle, we shouldn’t be surprised to see some dead potatoes. Cryptocurrency and blockchain have immense potential and we shall see it in coming years. It just takes time, as all the good things in life do.”
Markets tend to have different cycles. When they go down, it is time to re-think our strategies and plan future investments once again. After an incredible bull run as we had in cryptocurrencies at the end of the last year, it was expected to see a prolonged bear market.
At the moment of writing virtual currencies are operating positively, with the exception of Ethereum. They are recovering part of what they lost during the last days. Bitcoin (BTC) is now being traded above $6,500 dollars and has a market capitalization of $112 billion dollars. Ethereum, at the same time, is being traded close to $227 dollars and has a market capitalization of $23 billion dollars.
XRP, Bitcoin Cash (BCH), EOS, Stellar (XLM) and Litecoin (LTC) are all in the green zone with increases that range between 2.5% and 3.8%.
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