Worst case scenario for cryptos is here
It seems that a worst case scenario is unfolding for cryptos. Read here why.
Stock markets jumped last Thursday as stock traders saw some relief after several weekly losses. All major stock indices recovered after falling for nearly eight weeks in a row, while the crypto economy suffered some losses, losing about 4% against the dollar.
Worst case scenario for cryptos
It won’t be the end of the world, but a bad situation is developing for digital currencies. For example, the Dow Jones rose about 1.6% on Thursday afternoon as the index posted gains for the fifth day in a row. Quincy Krosby, LPL Financial’s chief equity strategist, believes the recovery may be a sign that some of last week’s doom and gloom forecasts were exaggerated.
“While this was an anticipated and much-talked-about potential oversold rally, the underpinnings for today’s rising market suggest that last week’s doom and gloom may have been exaggerated. Along with the terrible headlines about the recession,” Krosby told CNBC’s Tanaya Macheel and Jesse Pound on Thursday. However, many experts believe that cryptos have decoupled, says economist Alex Krüger: ‘worst case scenario for crypto is here’.
Disconnection
Meanwhile, amid the stock recovery, the cryptocurrency economy faltered again last week and lost. Bitcoin also did not have a very good week.
Economist and trader Alex Krüger spoke on Thursday about crypto-decoupling of stocks. “The worst-case scenario for crypto is here,” Krüger said. “Apathy and disconnection. The correlation with stocks is now broken. It has been largely gone since Monday afternoon. Now stocks just bounce.” As stocks recover, analysts discuss Bitcoin decoupling, gold markets remain ‘under pressure’.
