As Stock Market Plunges, Bitcoin Hosts Price Surge

As of yesterday, the stock market took a plunge as Dow Jones Industrial Average, Nasdaq 100 Index, S&P Index and stocks like Alphabet Inc. took a hit while bitcoin price and cryptocurrency market registered a good surge. As stock market looks shaky, crypto market has gained a bull run momentum.

Dow Jones and the stock market takes a hit

Since March 2017, the Dow Jones Industrial Average experienced the longest losing streak as it fell for the fifth day, yesterday. Though it has been looking like an earning season on the Wall Street, stocks took a heavy plunge yesterday while the cryptocurrency market gained value.

The shares of the technology and industrial companies took a hit and went down while the 10-year treasury yield gained 3 percent after four years. The sell-off in the market took effect when Caterpillar Inc. stated that the first quarter was its maximum recorded value for the year. This resulted in a downward streak in stock values as Alphabet Inc. went 4.5 percent lower and Nasdaq 100 Index took a plunge of 2.1 percent.

US Dollar that was hitting its highest since January also weakened and gold rallied. However, today in the evening as US dollar resumed its appreciation on the foreign exchange market after a slump, Gold slid lower and fell to a four week low.

World stock markets have been mostly down along with the US stock indexes that showed weaker openings. With disappointing reports on corporate earnings, the interests of the investors waned that was further affected by the rising interest rates and inflation.

Also, read: Top-Notch Talent From Wall Street Relocating To Booming Crypto Market

While Bitcoin price soars and CME & Cboe Bitcoin Futures volume rises

On Tuesday, the Dow Jones closed down 425 points that were down over 600 points at its worst point of the day. With, Dow falling for the past five days straight, it lost a chunk of its gains for the year representing its longest losing streak in over a year. The S&P 500 Index dropped 1.3 percent along with MSCI Emerging Market Index that experienced a 0.3 percent fall.

On the same day, Bitcoin and altcoins saw a great surge in prices with Bitcoin price rising over $9,000 level and entire crypto market April rally climbing to about 75 percent. Furthermore, the Bitcoin futures’ volumes on Wall Street also experienced a spike the same day.

It’s not out of the ordinary for Dow Jones and Bitcoin to move in opposite directions as it has actually happened frequently. Over the last week, the Cboe futures contract has been trading between 1,700 and 4,000 bitcoins. These contracts that expire on May 16, traded 6,653 BTC yesterday.

As for CME contracts that expire this Friday saw a surge of up to 23,405 bitcoins in its volume which usually trades even less than 15,000 BTC. These yesterday’s figures show the volume was over 60 percent more than their weekly averages.

Though it’s not clear, in a way, it can be said the money from the stock market has flown into the cryptocurrency market. However, today, cryptocurrency market is experiencing a few drop downs which are yet to be seen how long it will last.

Do you think as stock market plunges, the investors are shifting their attention towards the crypto market? Will this be a factor for Bitcoin price rise as well?