BTC and ETH HODLs Relative To Stocks: Crypto vs Wall Street
Looking at the charts during downturns may not be as fun as looking at them during bull runs, but if you're a long-term trader it's important to keep tabs on how things are performing even when the prices are down.
The pattern up until recently was that when stocks went up, so did crypto, and visa versa. The "volatility" of crypto assets often makes the prices go way up during good times, but it often plummets in price shortly afterwards as a response.
In recent years, however, a different sort of pattern has emerged - during bull runs the prices still go up but during downturns the asset has shown some resiliency against the massive drops that it used to experience in the past. It may be a result of increased market size and name recognition - giving the asset a level of stability comparable to traditional stocks and markets.
The USD markets have started to show signs that it's about to slow down, given the massive government spending and economic disruptions (COVID, supply chain issues, Russian sanctions) which is likely to take a turn for the worst as time goes on. How will crypto fair in this new economic environment? Time will tell.
The pattern up until recently was that when stocks went up, so did crypto, and visa versa. The "volatility" of crypto assets often makes the prices go way up during good times, but it often plummets in price shortly afterwards as a response.
In recent years, however, a different sort of pattern has emerged - during bull runs the prices still go up but during downturns the asset has shown some resiliency against the massive drops that it used to experience in the past. It may be a result of increased market size and name recognition - giving the asset a level of stability comparable to traditional stocks and markets.
The USD markets have started to show signs that it's about to slow down, given the massive government spending and economic disruptions (COVID, supply chain issues, Russian sanctions) which is likely to take a turn for the worst as time goes on. How will crypto fair in this new economic environment? Time will tell.
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