Bitcoin is down over 80 percent and altcoins over 90 percent from their peaks. Meanwhile, the global stock market is in a slump as Dow and Nasdaq drop about 3 percent. eToro analyst Mati Greenspan says stock market participants don’t have what it takes to trade cryptos. While Anthony Pompliano says Bitcoin has overperformed S&P for the last 10 years and “will outperform over next 10 too.”
Crypto & Global Market in a Slump
Bitcoin has dropped down from $6,500 to the current trading price of $3,890. The leading cryptocurrency is down over 80 percent from its peak with chances of even going lower. Altcoins are doing even worse with many down more than 95 percent. The top cryptos are majorly in red as shown in the chart below.
As for the entire crypto market, Waves and Binance Coin are surging by about 14 percent while the majority of the crypto market sees red.
Meanwhile, the global market is in a slump as well. US President Donald Trump has now yet again threatened to impose “major tariffs” on Chinese goods. As the US and China trade war jitters the finance market once more, Asian, European and US stocks all are registering losses.
S&P 500 and Nasdaq both took a drop of over 3.2 percent each. Brent crude has fallen down 1.6% while Dollar is rising by 0.1 percent but euro and Japanese yen declined.
Neil Wilson, chief markets analyst for markets.com said,
“There is a strong chance now that the buy the dip mentality has flipped into a sell the rally approach.”
In comparison to the crypto market, the percentage of the red global market is not much as further pointed out by Mati Greenspan, the senior analyst at eToro:
The Dow is down 3% and all the stock jocks are loosing it.
— Mati Greenspan (@MatiGreenspan) December 4, 2018
In response, a crypto enthusiast commented,
“And right now it’s looking like it will drop at least another 3% tomorrow. When futures show no, even tiny, bounce after a day like this.. well.. apocalypse. That’s why I do solely crypto. If I can lose the shirt off my back anyway, might as well lose it shooting for the moon.”
The percentage loss might be fewer but the actual value lost is huge as shared by Morgan Creek Digital founder, Anthony Pompliano,
The S&P 500 lost almost $755 BILLION today.
That is more money lost in a single day for public equity investors than all crypto investors combined this year.
The math don’t lie! 🤷🏽♂️
— Pomp 🌪 (@APompliano) December 4, 2018
One Twitter user, commented, “You are comparing the equity value of every public company to a speculative project that turned into a bubble. Terrible comparison.” To this Pompliano replied with,
“Bitcoin outperformed the S&P 500 for last 10 years, 5 years, and last 2 years. It will outperform over next 10 too. It’s irresponsible for investors to have zero exposure to the best performing asset.”
He further shared his bullish views on the future of the crypto market,
“Crypto market will outperform S&P over next 10 years. Won’t be close. Public equities are in longest bull market in history and overvalued today.”