BTC and ETH Are Doing Fine Compared to US Stocks and Indices

NASDAQ 100 opened the day by losing 4%, S&P 500 Lost about 3%. The unfortunate thing for many investors is that it has been happening for a week now. S&P’s cumulated loss over the week is over 13% and NASDAQ 100 lost over 8% during the same period. It looks like the US economy is tanking despite whatever new moves are made by the government.

The crypto market has been quite stable despite the global economic turbulence. Even at the time of writing when BTC is moving in the downward direction, it is still 4% up compared to September 22. Ethereum lost just 2% but was up 1.3% at the beginning of the 24-hour cycle. Many experts have been quite surprised by the performance of cryptocurrencies amidst the uncertainty in the national economy.

Several factors contribute to this phenomenon

Many people are taking matters into their own hands by switching to cryptocurrencies to hedge against inflation. What is important is that it is happening across the globe meaning that the mood of the US population regarding crypto is not as impactful.

Many investors are uncertain about their next moves considering how many national economies look to be in shambles. The British Pound has been dropping to new all-time lows against the US dollar. The bearish movement is fueled by questionable tax cuts announced by Liz Truss. The alleviation of taxation is targeting banks, wealthy individuals, and corporations, but largely ignores common folk who will suffer the most during the upcoming winter.

With so much uncertainty in the US and UK, many investors are seeing crypto as a more appealing destination for their capital.

Will Bitcoin continue holding on?

The current volatility does not allow anyone to make predictions. Only wild guesses are being distributed on social media and by news outlets. The reality is that the crypto market may flourish despite the global recession, but we have to think about the mood of conservative investors who may abandon all financial instruments to focus on real estate, artwork, stable commodities, and other time-tested investments.

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