Dow Jones Drops Another 500 Points as Bitcoin Price and Crypto Markets Remain Stable For Now
Yesterday, the Dow Jones dropped 800 points to mark its largest single-day loss in nine months. Today, the Dow Jones dropped another 500 points while cryptocurrencies remained relatively stable.
By the time markets closed yesterday, the Dow Jones had lost more than 830 points, its largest loss in months. Cryptocurrency prices were also significantly down yesterday. Bitcoin dropped 5%, while altcoins like ETH, BCH, and XRP dropped 9% to 11%. It was a bloody day for financial markets and crypto markets alike.
After markets closed, Dow Jones futures and Asian markets looked equally as bleak for Thursday. Reports suggested that markets were going to plummet out of the gate once again.
Well, Thursday morning has come and gone, and the Dow Jones has experienced a roller coaster of a day. Markets dropped at open before gaining several hundred points. Then, they dipped several hundred more points, rose again, and plummeted in the afternoon.
The Dow Jones opened at 25,518. As we go to press, the Dow Jones sits at 25,248, a drop of 350.70 points or 1.37%.
At certain times during the day, the Dow Jones had dropped even further. At 2:50pm, for example, the Dow Jones touched 25,024.67, a fall of 500 points from the open. After a brief surge before markets closed, the Dow plummeted once again for a 1.37% loss on the day.
Crypto Prices Are Stable Amidst Plummeting Markets
Yesterday, tumultuous markets were accompanied by plummeting cryptocurrency values. Today, however, that’s not the case, as crypto markets have remained surprisingly stable. There has been virtually no upward or downward movement in crypto markets since prices first plummeted yesterday.
At 18:00 UTC yesterday, bitcoin markets plummeted from $6,555 USD down to $6,250. As we go to press, bitcoin is sitting at a price of $6,322.
All major cryptocurrencies are down over the past 24 hours, although over the past 12 hours, there has been limited movement among all major cryptocurrencies.
One of the biggest winners of the day has been 0x protocol (ZRX), which surged 20% after a Coinbase listing was officially announced. Since the listing announcement, however, 0x has pared some of its gains and is up 5% on the day.
Will Crypto Prices Rise or Fall in a Recession?
One of the biggest questions in the crypto space today is whether crypto prices will rise or fall during a recession.
A price correction is widely expected for financial markets in the coming months. Bitcoin is prized for being tied to no single country’s economy or governmental decisions. If multiple major countries go through a recessionary period, however, then bitcoin’s mettle could be tested.
Based on the last two days of market movements, bitcoin’s price does not seem connected to financial markets – at least in the short term. Some investors believe they’ve found the much-coveted “alpha” with bitcoin, while others claim bitcoin will drop when traditional financial markets drop.
Stay tuned to see where markets end the week. It could tell us more about how closely intertwined crypto and financial markets are – if at all.