As the Dow plunged into negative territory for 2018 following Wednesday’s 600-point drop, and the Nasdaq Composite Index posted a 4.4% slide, the largest single-day loss since August 2011, Bitcoin (BTC) has posted a $40-spread within the past 24 hours, according to WorldCoinIndex.
BTC price action shows low volatility, with a 24-hour high of $6,489 and a 24-hour low of $6,449.
Source: WorldCoinIndex
The one-month BTC chart shows a trading range of $6,686 to $6,248.
The Dow is currently rallying, up +478.75 (1.95%) at time of writing, showing wild swings that suggest market volatility is not a Bitcoin phenomenon.
In the case of the traditional markets, long-term concerns about a looming recession are contributing to pullbacks and corrections.
Writing in February 2018, Desmond Lachman, a macro-economist at the International Monetary Fund and on Wall Street, says “all the ingredients are in place for a catastrophic economic and financial market crisis.”
“A key ingredient for a global economic crisis is asset price bubbles and credit risk mispricing. On that score, today’s financial market situation would appear to be very much more concerning than that on the eve of the September 2008 Lehman-bankruptcy. Whereas then, asset price bubbles were largely confined to the U.S. housing and credit markets, today, asset price bubbles are more pervasive being all too much in evidence around the globe.”
The Nasdaq has posted the largest percentage drop since October 2008.
While crypto analyst and YouTuber Nicholas Merten, aka Data Dash, points out the big drop, he suggests an imminent recession won’t be as bad as the global financial crisis of 2008.
In his latest video, he talks about the October bloodbath in US stocks and the “fear indicators” that implicate economic uncertainty across the markets.
“Not only is the Nasdaq having its worst month since that month in October of 2008 but the Dow Jones, the S&P 500 and even less-known indices like the Russell 2000 are experiencing their worst month on record.”
“This is the first year that I’ve actually been bearish on equities… In one month, we’ve cut out practically all the gains of this year.”
[the_ad id="42537"] [the_ad id="42536"]While the Nasdaq posted a 12.15% dip on the month on Wednesday, momentarily wiping out all gains for the year, Bitcoin is currently trading at $6,471, up 12.6% from one year ago today, when it was trading at $5,747.
The Nasdaq Comp, +3.34%, is currently up 11.9% from one year ago today.
