U.S. stock markets jumped on Thursday as traders saw some relief after a few weeks of losses. All major stock indexes rebounded after falling for nearly eight weeks in a row, while the crypto economy took a few losses on Thursday, losing about 4% against the U.S. dollar over the past 24 hours. Gold, meanwhile, has fallen below $ 1,850 an ounce, as Kitco’s Neils Christensen says gold markets remain “under pressure, seeing no major buying momentum.”
Analyst Says ‘Doom and Gloom’ Predictions ‘May Be Overtaken’ in Mid-Market Bounce
The Dow Jones Industrial Average, S&P 500, the Nasdaq, and NYSE composition all gathered during Thursday’s trading sessions. The S&P 500 rose 2% to 4,057.84 with the closing bell, while the Nasdaq plunged 2.7% to 11,740.65.
Market control: It’s a better day, as stocks have continued to rebound from the lowest levels in more than a year.
– Bloomberg Markets (@markets) May 26, 2022
The Dow Jones industrial average jumped 1.6% on Thursday afternoon as the index recorded gains for the fifth straight day in a row. Quincy Krosby, LPL Financial’s chief stock strategist, thinks the rebound may be a sign that some of last week’s predictions of doom and sadness have been exaggerated.
“While this was expected, and much talked about as a possible‘ oversold ’build-up, support for today’s higher market climb suggests that last week’s downturn and sadness about the major US consumer may have been exaggerated, along with the terrible recession titles. ”Krosby told CNBC’s Tanaya Macheel and Jesse Pound on Thursday.
Many believe Cryptos has broken up, Alex Krüger Says “The Worst Case Scenario for Crypto Is Here”
Meanwhile, in the middle of the stock bounce, the economy of cryptocurrency fluctuated again on Thursday, losing 4% over the past 24 hours of trading. Bitcoin (BTC) lost a small percentage on Thursday dropping about 0.7%.
Ethereum (ETH), however, lost about 6.9%, along with a number of alternative crypto assets that saw deeper losses than bitcoin. While stock markets have improved and crypto assets have not, some traders have discussed crypto divestment of stocks according to correlation.
Crypto Twitter: Crypto has not broken up!
Nasdaq: + 4% this week
ETH: -3% this week (-13% open to trough)
– Alex Krüger (@krugermacro) May 26, 2022
The economist and businessman Alex Krüger there was talk of a crypto divestment of shares on Thursday.
“The worst case for crypto is here,” Krüger said. “Apathy and detachment. The correlation with equations is now broken. It has mostly been missing since Monday afternoon. Now shares are bouncing alone. “After his statement, Krüger doubled his comment.” Look at people who don’t trade and barely look at charts or correlations, disagree with this tweet. It’s okay. Everyone is treated differently, “Krüger said added.
“Seeing a lot of stock tweets [and] crypto decoupling, and crypto not bouncing with stocks, ”Martin tweeted. difference. “
Peter Schiff discusses US GDP contraction and Bitcoin breakdown as gold markets fall
Gold has also not risen in value and remains below the price of $ 1,850 per ounce against the US dollar. 30-day statistics show that an ounce of good gold has decreased by 1.67% and 0.27% has been lost over the past 24 hours. On Thursday, Kitco’s Neils Christensen discussed the decline in gold in a report that highlights the U.S. Department of Commerce’s recent report that notes that the first quarter gross domestic product (GDP) has declined by 1.5% annual rate. “The gold market doesn’t see much of a reaction to the disappointing economic data,” Christensen explained Thursday.
Golden bug and economist Peter Schiff talked about GDP shrinking 1.5% and also mentioned that bitcoin (BTC) parted ways with Nasdaq. “The U.S. economy, arguably the strongest it has ever been, contracted 1.5% in Q1, .2% more than analysts expected,” Schiff said. said Thursday. “Yes [the] GDP contracts again in Q2, then the economy is officially in recession. If GDP is contracted when the economy is like that [strong]imagine what happens when it is weak, ”added the economist.
Schiff continued on Thursday and made sure to throw salt on bitcoin’s recent market injuries. Schiff noticed:
Is bitcoin finally free of its high correlation with Nasdaq? As technology stocks rise today Bitcoin falls, almost breaking below $ 28K. I guess Bitcoin will continue to maintain its positive correlation with Nasdaq, but only when it falls.
What do you think about the current state of markets and the economy? Let us know what you think about this topic in the comments section below.
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