You may have seen my previous article on BTC and the Market Cap, if not click here. We obliterated the support line, where I assumed there would be a little bounce and a chance at a small profit. I took a look at my portfolio this morning and my reaction was pretty much the image above…
So what went wrong?
Nothing. Markets are doing what markets do, as can be seen in this interesting correlation between the S&P 500 and the crypto market is they both had a significant drop at roughly the same time as seen in the image below.
I think the next question is will Bitcoin and the Cryptocurrency market in general continue following the movements of the S&P500 (traditional markets) or will it detach? Many expect that the falling bearish stock market will make investors look for a safe haven, namely the crypto market. This is debatable and only time will tell, but for now we can see we’re following the stock market, and are yet to see money come into the space as money has been flowing out since the beginning of the year.
Hold onto your socks in the meantime and only invest what you can lose so you don’t end up tearing your eyes out of there sockets.