Bitcoin and Cryptocurrencies Pull Back While Dow Experiences Record-Breaking Rally
Bitcoin and the cryptocurrency markets are experiencing moderate pull-back while the Nasdaq, S&P 500, and the Dow erase their Christmas losses.
Bitcoin and other cryptocurrencies experienced a strong rally leading up to Christmas, with total market capitalization surging from $122 on Wednesday, Dec. 19th to $146 billion on Christmas day, Dec. 25th; an increase of 20 percent. Bitcoin showed similar performance, going from $3,800 to $4,250 per coin.
These gains were more or less erased by Dec. 26th as Bitcoin once again normalized at price levels around $3,800. However, the market has still retained $7 billion of its market capitalization, sitting at a total of $129 billion.
Meanwhile, the Dow gained a record-breaking 1086 points (an increase of 5 percent), its best day-after-Christmas session ever. The S&P 500 and Nasdaq also posted strong returns, jumping 5 percent and 5.8 percent, respectively.
These gains come after an overall December stock market landslide, with the Dow dropping 15 percent prior to today’s rally.
After the robust 2017 stock market year, there is evidence that U.S. markets are squeamish: U.S. Treasury note yields fell to 2.72 percent, its lowest levels since April. When yields on Treasuries are low, that typically indicates that market confidence is weak, as explained by Investopedia.
Overall, the crypto markets are still up 27 percent since bottoming at $100 billion in Dec. 15th. Month over month, total market capitalization is up a modest 5 percent.
The recent drop in prices could indicate consolidation before any further price movement. Whether the market experiences another rally or slips back to former lows is still undecided.
The post Bitcoin and Cryptocurrencies Pull Back While Dow Experiences Record-Breaking Rally appeared first on CryptoSlate.