With bitcoin drops down to $6,730 today at one point and currently riding at $7,000, everyone is feeling the blues, but a look at the stock market shows that it is experiencing even a terrible fate by having the worst week since 2016 with a dip ranging from 3-5 percent across the world.
Beating the crypto dip: US stock market experiences worst week since 2016
Today, Bitcoin saw a great downfall by dropping down below $6,000 at one point. This was the second lowest level bitcoin has hit since November 2017.
Right now, the entire crypto market is experiencing a lot of red as some of the popular coins saw the dip up to 12 percent. Bitcoin drops of 7.12 percent, Ethereum 5.15 percent, Ripple 5.41 percent and Tron 12.14 percent while Litecoin saw the dip of only 1.84 percent.
With numerous events taking place around the world inclusive of regulations, bans and so much more the entire week cryptocurrency market continued with the bearish performance.
However, cryptocurrency market is not the only one that is having the blues, the global stock market has been as depressed this whole week.
Since January 2016, the China sell-off affected the market with its worst weekly performance of US equity market that fell about 6 percent over the period of five days. Reportedly, this wide sell-off left no region safe by affecting the UK stocks by 3.4 percent, Asian markets shook about 3 to 4 percent where Japan witnessed over 5 percent dip and the European stocks fall down by more than 4 percent.
The reason for such a wide negative sentiment in the market could be numerous. The probability of an incoming trade war between US and China followed by the US tariffs is the prime reason for the same. The current market scenario is making it difficult for people to find any reason that might bring an upward trend in the stock market, at least for now.
MarketViews points out that:
“Although the price action of the last two months has only increased our conviction that we have entered a multi-month topping process that will ultimately give way to a vicious bear market, we are not sure that markets are headed directly lower in the short term. If they do head immediately lower, it could be in a cascading fashion that the media would probably label as a crash, but we think the odds of a relief rally starting at some point are probably higher.”
A probable silver lining: Opportunity to buy altcoins at cheaper prices
The recent plunge in the bitcoin and other cryptocurrency prices has provided the investors with an opportunity by bringing other coins into their buy range.
This drop in crypto prices puts digital currencies like ADA, EOS, BNB, and BAT among others that have the better chances to lift off in investors’ close range. People that are interested in the potential coins but couldn’t make the purchase can now get into the crypto market after this dip.
What are your views on the stock market taking a bigger and more terrible downfall than the bitcoin drops? Share your thoughts with us!
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
I am an entrepreneur and a writer with a bachelors degree in Computer Science. I manage the blockchain technology and crypto coverages at Coingape. follow me on Twitter at @arya_achal or reach out to me at achal[at]coingape.com.