U.S. stocks jumped on Thursday as stock traders saw some relief after weeks of losses. All major stock indexes rebounded after nearly eight straight weeks of losses, while the crypto economy suffered some losses on Thursday, down about 4% against the dollar in the past 24 hours. Meanwhile, gold has been trading below $1,850 an ounce as Kitco’s Neils Christensen said the gold market remained “under pressure and no major buying momentum in sight”.
Analysts say ‘doom and gloom’ forecasts ‘may be overdone’ amid stock market rally
Dow Jones Industrial Average, S&P 500, Nasdaq and NYSE Composite all united during Thursday’s trading session. The S&P 500 closed up about 2% at 4,057.84, while the Nasdaq surged 2.7% to 11,740.65.
Market Check: It’s a better day as stocks continue to rally from their lowest levels in more than a year.
— Bloomberg Markets (@markets) May 26, 2022
The Dow rose about 1.6% Thursday afternoon, the fifth straight day of gains for the index. Quincy Krosby, chief equity strategist at LPL Financial, believes that the rebound may indicate that some of last week’s doom and gloom forecasts were overblown.
“While this was an expectation, and a closely watched potential ‘oversold’ rally, the fundamentals of today’s market climb suggest that last week’s doom and gloom for the all-important U.S. consumer, as well as the dire recession headlines, may It’s overdone,” Crosby Tell CNBC’s Tanaya Macheel and Jesse Pound Thursday.
Many believe cryptocurrencies are decoupled, Alex Krüger says ‘the worst is here for cryptocurrencies’
Ethereum (Ethereum), however, lost about 6.9%, while some alternative crypto assets lost more than Bitcoin. While the stock market has improved without crypto assets, many traders have been discussing a decoupling of crypto’s correlation with stocks.
Encrypted Twitter: Encryption without decoupling!
Nasdaq: Up 4% for the week
Ethereum: -3% this week (-13% open to trough)
— Alex Kruger (@krugermacro) May 26, 2022
Economist and Trader Alex Kruger There was talk of the decoupling of cryptocurrencies from stocks on Thursday.
“The worst-case scenario for cryptocurrencies is here,” Krueger Say“Apathy and decoupling. The correlation with stocks is now broken. It has largely disappeared since Monday afternoon. Now stocks have rebounded alone.” Krueger doubled down on his comments following his statement. “Note that people who don’t trade and barely read charts or correlations disagree with this tweet. That’s okay. Everyone responds differently,” Krueger Add to.
“Seeing a lot of tweets about stocks [and] Crypto decoupling, cryptocurrencies not bouncing with stocks,” Martin tweeted. “Graphs give a better picture of what’s going on: 1/ Our correlation is high 2/ Luna crash leads to more severe crypto selloff 3/ The post-crash cryptocurrencies did not make up the difference. “
Peter Schiff discusses U.S. GDP contraction and Bitcoin decoupling as gold market slumps
The value of gold did not rise either, remaining below $1,850 an ounce against the U.S. dollar. The 30-day statistic shows that over the past 24 hours, an ounce of pure gold has lost 1.67% and 0.27% lower. Thursday, Kitco Nils Christensen Gold’s slump was discussed in a report that highlighted a recent report from the U.S. Commerce Department, which noted that gross domestic product (GDP) fell in the first quarter. 1.5% APR“The gold market didn’t react much to the disappointing economic data,” Christensen explained Thursday.
Gold bugs and economists Peter Schiff Speaking of a GDP contraction of 1.5%, Bitcoin was also mentioned (bitcoin) has been decoupled from Nasdaq. “The U.S. economy, said to be the strongest ever, contracted 1.5% in the first quarter, 0.2% above analysts’ expectations,” Schiff Say Thursday. “if [the] GDP contracted again in the second quarter, and the economy officially slipped into recession.If GDP shrinks in such a bad economy [strong]imagine what happens when it weakens,” the economist added.
Schiff continued on Thursday, making sure to sprinkle salt on Bitcoin’s recent market trauma.Schiff Comment:
Has Bitcoin finally shaken off its high correlation with Nasdaq? While tech stocks are up today, Bitcoin is falling, almost below $28,000. My guess is that Bitcoin will continue to maintain a positive correlation with Nasdaq, but only on a dip.
How do you see the current market and economic conditions? Let us know what you think about this topic in the comments section below.
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