Crypto market continues the red movement from yesterday while “showing strong relative strength against stocks.” Meanwhile, the world stock markets that are being permeated by bears have a lot more pain ahead of them.
Bears Taking Over the World Stock Markets Vs Red Crypto Market
The crypto market is going red with Bitcoin down by 1.95 percent, Ethereum (ETH) by 3.41 percent while XRP got hit by 3.13 percent.
Bitcoin Cash (BCH), Litecoin (LTC), Tron (TRX), and IOTA (MIOTA) all are in the red by close to 5 percent.
However, as put by Max Keiser, Partner at crypto VC funds, Bitcoin is coming out as a strong contender against stocks:
“Bitcoin is showing strong relative strength against stocks. As this trend continues, cash parked in stocks and bonds will rotate into Bitcoin. I see new ATH’s in the medium term.”
Relative strength is simply the measure of the price trend of a financial instrument or stock in comparison to other instruments, stock or industry.
Though crypto market seems to be slowly trying to make its way away from the red until yesterday the crypto market has been in the green, unlike the global stock market which has been slowly venturing into the bear market.
If we take a look at the world stock markets, it is not at all doing good and with analysts calling out a bigger rout with no future catalyst to take the market higher in sight, the market scenario is bearish. The current scenario is shown below:
According to Bank of America Merrill Lynch, the bears are getting even more vicious outside the US with about 58 percent of MSCI’s global index stocks being in a bear market right now. There’s blood on the street in Europe as Germany DAX Performance Index is lower 13.28 percent on the year and Italy’s FTSE MIB is down 14 percent this year. However, most of the equity indexes are either already in or about to achieve correction.
Bear has already gotten into the global stock market and is now permeating the US that could make 2019 be the year of the bear.
Morgan Stanley’s chief equity strategist Michael Wilson has called the market moves “the rolling bear market” that has “unfinished business with the S&P.” He further shared that after two weeks of the rolling bear market, it has “made its latest and loudest statement yet by attacking this bull market’s darlings – Growth stocks, concentrated in the US Technology and Consumer Discretionary sectors.”
Moreover, according to him “it doesn’t take heavy analysis to recognize this market is now approaching bear territory.” Though S&P is down only 8.8% this month while giving up all of its years till date gains, “40% of US Stocks and almost every sector have fallen 20% at some point from their 52-week highs.”