No March Toward Crypto For Investors Despite Recent Stock Market Dip
It’s a no-show for the crypto market despite the stock market taking a beating this week. Some have presumably said cryptocurrencies would save the day when the global economic terrain tremors. But so far, investors are not looking in that direction even as the global stock market appear rattled.
Only this week the German DAX, French CAC 40, and UK FTSE 100 are all off by more than four percent in mid-day trading Friday.
In the U.S., the NASDAQ Composite has fallen by 3.2 percent for the week, while the S&P 500 is down by nearly four percent.
The financial industry and investors appear to be getting nervous. Jamie Dimon, CEO of JPMorgan Chase, said on Friday in his bank’s earnings press release that:
“The U.S. and the global economy continue to show strength, despite increasing economic and geopolitical uncertainties, which at some point in the future may have negative effects on the economy.”
Asian markets are down similarly. The Nikkei 225 has declined by 3.6 percent, while the Shanghai SSE Index is down by 6.7 percent. The Hong Kong Stock Exchange is also off 3.4 percent.
Dimon added the during the media call that:
“there’s always friction in the global economy, it just seems to be deteriorating a little bit. I’m just pointing it out. When you look at the whole landscape, I wouldn’t ignore all that and the chance that one of those could go bad.”
Other observers are pointing to a variety of factors for triggering the drop this week. Rising interest rates, public debt held by governments, to the possible effects of a trade war between the United States and China have all been fingered.
Even in the wake of these adverse economic outcomes, those who were hoping that cryptocurrencies would withstand the selling pressure of the wider financial markets were disappointed this week.
Bitcoin (BTC), when valued in U.S. dollars, dropped by 3.6 percent over the last seven days, while bitcoin cash (BCH) fell by more than 14 percent. Ether (ETH) has declined more than 12 percent on the week, while Ripple’s XRP is off by around 11 percent.
The overall crypto market cap fell by $16 billion so far in that span and currently stands at around $200 billion. Most other altcoins had similar performances to BCH, ETH, and XRP.