Market updates and forecasts

Get the latest economic news from ForexMart, including updates on the financial market, central banks' policy announcements, financial indicators, and other relevant news which can have an impact on the industry.

Disclaimer:  Information provided here to retail and professional clients does not contain and should not be construed as containing investment advice or an investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance.

Opinion: Bitcoin's peak growth could lead to a stock market crash


April, 08 2024
watermark Economic news

The peak price of bitcoin, reached in mid-March at a record level of $73,800 and still not confirmed by repeated testing, may be the beginning of a «bearish» cycle for the stock market, Business Insider reports. 


The rise in the price of bitcoin and the NASDAQ 100 index reflects the speculative fever caused by the Fed's «cheap money» during the pandemic, according to a number of strategists on Wall Street. In particular, Stifel strategist Barry Bannister pointed out that the recent growth of the cryptocurrency coincided with the «dovish» reversal of the Fed, but this connection may indicate the end of the current «bullish» growth.


If we consider the logarithmic diagram of bitcoin with a polynomial trend, then the token is already approaching the so-called «maturity» with major peaks at $73,000. If the token has already reached its peak, it could have negative consequences for the rest of the stock market, especially for technology stocks and the entire NASDAQ 100 index over the next six months.


This suggests a weakening of technology stocks and a possible decline in investor sentiment when value stocks begin to outperform growth stocks.


Logo

QUICK LINKS

Feedback

ForexMart is authorized and regulated in various jurisdictions.

(Reg No.23071, IBC 2015) with a registered office at Shamrock Lodge, Murray Road, Kingstown, Saint Vincent and the Grenadines

Restricted Regions: the United States of America, North Korea, Sudan, Syria and some other regions.


© 2015-2024 Tradomart SV Ltd.
Top Top
Risk Warning:
Foreign exchange trading carries a high risk of losing money due to leverage and may not be suitable for all investors. Before deciding to invest your money, you should carefully consider all the features associated with Forex, as well as your investment objectives, level of experience, and risk tolerance.
Foreign exchange trading carries a high risk of losing money due to leverage and may not be suitable for all investors. Before deciding to invest your money, you should carefully consider all the features associated with Forex, as well as your investment objectives, level of experience, and risk tolerance.