U.S. stock markets surged on Thursday as stock traders saw some relief after a number of weekly losses. All major stock indices rebounded after falling for nearly eight straight weeks, while the crypto economy suffered losses on Thursday, losing around 4% against the US dollar in the past 24 hours. Meanwhile, gold has remained below $1,850 an ounce as Kitco’s Neils Christensen says gold markets remain “under pressure, seeing no major buying momentum.”
Analyst Says ‘Doom and Gloom’ Forecast ‘May Have Been Overdone’ Amid Stock Market Rebound
The Dow Jones Industrial Average, S&P 500, Nasdaq and the NYSE composite all rebounded in Thursday’s trading sessions. The S&P 500 rose about 2% to 4,057.84 at the close, while the Nasdaq jumped 2.7% to 11,740.65.
Market check: It’s a better day as stocks continued to rebound from the lowest levels in over a year.
The Dow Jones jumped around 1.6% on Thursday afternoon as the index posted gains for the fifth straight day. Quincy Krosby, chief equity strategist at LPL Financial, believes the rebound could be a sign that some of last week’s dire predictions were overstated.
“While this is an expected and much talked about potential ‘oversold’ rally, the underpinning of today’s market rise suggests that last week’s pessimism regarding the all-important consumer American may have been overdone, as well as the recession headlines,” Krosby told CNBC’s Tanaya Macheel and Jesse Pound on Thursday.
Many Believe Cryptos Have Decoupled, Alex Krüger Says “The Worst Case Scenario For Crypto Is Here”
Meanwhile, amid the rebound in stocks, the cryptocurrency economy faltered again on Thursday, losing 4% in the past 24 hours of trading. Bitcoin (BTC) lost a small percentage on Thursday, dropping around 0.7%.
Ethereum (ETH), however, lost around 6.9%, alongside a number of alternative crypto assets that suffered bigger losses than bitcoin. While stock markets have improved and crypto assets have not improved, a number of traders have discussed the crypto decoupling of stocks in terms of correlation.
economist and merchant Alex Kruger spoke on Thursday about crypto decoupling from stocks.
“The worst-case scenario for crypto is here,” Krüger said. “Apathy and decoupling. The correlation with equities is now broken. He has largely disappeared since Monday afternoon. Now stocks are bouncing back on their own. After his statement, Krüger doubled down on his comment. “Look at people who don’t trade and barely look at charts or correlations disagreeing with this tweet. That’s okay. Everyone copes differently,” Krüger added.
The promoter of bitcoin Luke Martinhost of the Stacks podcast, also talked about digital currencies not bouncing with stock markets.
“See a lot of tweets about stocks [and] decoupling crypto and crypto not bouncing with stocks,” Martin tweeted. “The charting gives a better picture of what is happening: 1/ We had high correlation 2/ Luna collapse leads to more severe crypto selloff 3/ After crypto collapse doesn’t make a difference. “
As Gold Markets Crash, Peter Schiff Discusses Shrinking US GDP and Bitcoin Decoupling
Gold has also not increased in value and remains below the $1,850 per ounce price range against the US dollar. The 30-day statistics show that one ounce of fine gold has lost 1.67% and 0.27% in the last 24 hours. Thursday, Kitco’s Neils Christensen discussed the fall of gold in a report that highlights the recent US Department of Commerce report which noted that first quarter gross domestic product (GDP) fell at an annual rate of 1.5%. “The gold market isn’t seeing much reaction to the disappointing economic data,” Christensen explained Thursday.
Golden Bug and Economist Peter Schiff talked about the 1.5% drop in GDP and also mentioned that bitcoin (BTC) decoupled from Nasdaq. “The U.S. economy, supposedly the strongest it’s ever been, contracted 1.5% in the first quarter, 0.2% more than analysts expected,” Schiff said. said Thursday. “Whether [the] GDP contracts again in Q2, then the economy is officially in recession. If GDP is contracting when the economy is so [strong]imagine what happens when it’s low,” the economist added.
Schiff followed up on Thursday and made sure to throw some salt on the bitcoin market’s recent wounds. Schiff noticed:
Is bitcoin finally freeing itself from its strong correlation with the Nasdaq? As tech stocks rise today, Bitcoin is falling almost below $28,000. My guess is that Bitcoin will continue to maintain its positive correlation with the Nasdaq, but only when it goes down.
Keywords in this story
Alex Kruger, Analyst, Bitcoin (BTC), Crypto, Cryptoeconomics, DOW, Economists, Equity Strategist, Ethereum (ETH), Gold, Gold Bug, Gold Markets, Jesse Pound, Kitco, LPL Financial, Luke Martin, Luna Collapse, nasdaq, Neils Christensen, NYSE, Peter Schiff, Quincy Krosby, S&P 500, stock indices, stock market, Tanaya Macheel, US stock markets
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Jamie Redman is the news manager for Bitcoin.com News and a fintech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written over 5,000 articles for Bitcoin.com News about disruptive protocols emerging today.
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