The US stock market jumped on Thursday as equity traders saw some relief after suffering many weekly losses. All major stock indexes rebounded after falling for almost eight straight weeks, and the crypto economy took some losses on Thursday, losing about 4% against the US dollar over the past 24 hours. Gold, meanwhile, is hanging below the $1,850 per ounce mark, as Kitco’s Neils Christensen says the gold market remains “under pressure and not seeing significant buying momentum.”
Analysts say “pessimistic” forecasts “may have been overdone” amid the stock market recovery
the Dow Jones Industrial Average, S&, P 500, Nasdaq, S&The P 500, Nasdaq, and NYSE composite all rosein Thursday’s trading session; S&the P 500 rose about 2% to close above 4,000; the P 500 rose about 2% to close at 4, 057.84, while the Nasdaq rose 2.7% to 11,740.65.
Market Check Stocks had a better day as they continued to rebound from their lowest levels in over a year.
The Nasdaq 100 is now up 2.99% https://t.co/SvxNwDuX3N pic.twitter.com/gbsgAlPP8B
– Bloomberg Markets (@markets) May 26, 2022
The Dow Jones Industrial Average rose about 1.6% on Sunday afternoon, marking its fifth consecutive day of gains, and Quincy Crosby, chief equity strategist at LPL Financial, believes the rebound may be a sign that some of last week’s pessimistic forecasts were exaggerated.
{“While this was expected and potential ‘overselling’ was talked about, the underpinnings of today’s market rally, along with last week’s dire recession headlines, suggest that pessimism about the critical U.S. consumer may have been overdone,}” Krosbytosaid} and CNBC’s Tanaya Macheel and Jesse Pound said on Thursday.
Many Believe Cryptos Have Decoupled, Alex Krüger Says ‘Worst Case Scenario for Crypto Is Here’
Meanwhile, amid a rebound in stocks,the cryptocurrency economystalled again on Thursday, losing 4% in the past 24 hours of trading. Bitcoin (BTC) fell roughly 0.7% on Thursday, losing a small percentage.
Ethereum (ETH), however, lost about 6.9%, along with many alternative crypto assets that saw deeper losses than Bitcoin. While the stock market has improved and crypto assets have not, many traders are debating the decoupling of crypto from equities in terms of correlation.
Crypto Twitter: crypto did not decouple.
Nasdaq: +4% this week
ETH: -3% this week (-13% open to trough)
– Alex Krüger (@krugermacro) is a May 26, 2022
economist and traderAlex Krügerspoke Thursday about crypto decoupling from stocks
“The worst case scenario for crypto is here,” Krüger said. “Indifference and decoupling. Correlation with equities is now broken. It is almost gone since Monday afternoon. Stocks are now bouncing alone.” After his remarks, Krüger doubled down on his commentary.” See how people who don’t trade and rarely look at charts or correlations disagree with this tweet? That’s okay. Everyone deals with it differently,” Krügeradded,
Bitcoin proponentLuke Martin85} hosts the Stacks Podcast, which also talks about digital currencies not bouncing back into the stock market.
Martin tweeted, “Seeing a lot of tweets about the decoupling of stocks (and) crypto, crypto not bouncing in stocks.” The chart gives a better picture of what is happening: 1/ we had a high correlation 2/ Lunar collapse leads to more severe crypto crash 3/ post collapse crypto does not make up the difference.”
As the gold market slumps, Peter Schiff discusses the decoupling of US GDP contraction and bitcoin
Gold has also failed to increase in value and remains below the $1,850 per ounce price range against the U.S. dollar, with 30-day statistics showing that an ounce of net gold is down 1.67%, losing 0.27% over the past 24 hours. On Thursday, Kitco’sNiels Christensendiscusses gold’s slump, focusing on a recent U.S. Department of Commerce report that showed that first-quarter gross domestic product (GDP) fell1.5% annualized“The gold market has not shown much of a reaction to the disappointing economic data,” Christensen explained on Thursday.
Gold bug and economistPeter Schifftalked about the 1.5% contraction in GDP and also noted that bitcoin (BTC) decoupled from the NASDAQ.” The U.S., Schiffsaid Thursday, “The economy, which should be the strongest it has ever been, contracted 1.5% in the first quarter, beating analysts’ expectations by 0.2%. If GDP contracts again in the second quarter, the economy is officially in recession. If GDP shrinks when the economy is (strong), imagine what happens when it is weak,” the economist added.
Schiff followed up on Thursday, confirming that he throws salt in Bitcoin’s recent market wounds. Schiffsaid:
has bitcoin finally broken out of its high correlation with the NASDAQ? While tech stocks are up today, bitcoin is down and about to fall below $28K. My guess is that bitcoin will continue to maintain a positive correlation with the NASDAQ, but only when the NASDAQ is falling.
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