Crypto Markets Recover Slightly After Yesterday’s Drop, Equities Market Trades Flat
Following yesterday’s drop in the crypto markets, most cryptocurrencies have recovered some of their losses and are trading up over a 24-hour trading period.
The traditional equities market, which has seen increased volatility over the past several weeks, is currently trading flat and one prominent investor believes further instability could be right around the corner.
Crypto Markets Trade Up After Yesterday’s Drop
Yesterday, Bitcoin dropped from the $3,800 region to lows of $3,645, from which it has since recovered. At the time of writing, Bitcoin is trading up 2.8% at its current price of $3,900, slightly higher than where it was trading at before yesterday’s drop.
Following the drop, many analysts believed that Bitcoin had broken its support level around $3,800, with Mati Greenspan, the senior market analyst at eToro, saying that the drop “could lead to a retest of yearly lows.”
Despite this move looking negative, it appears that there wasn’t significant volume behind the drop, allowing bulls to swiftly regain the upper hand. It is likely that Bitcoin will continue treating $3,800 as a level of relative support following the recent price jump.
The market’s upwards move has sent the overall crypto market cap to over $130 billion, up from its recent lows of $120 billion.
Most altcoins have closely tracked Bitcoin’s price action and are trading up today.
At the time of writing, XRP is trading up nearly 3% at its current price of $0.376. Yesterday, XRP fell to lows of $0.336, from which it is currently trading up nearly 12%.
Ethereum has responded very bullishly to the recent recovery and is trading up 5.4% at its current price of $132. Ethereum is trading up nearly 15% from its 24-hour lows of $115.
Litecoin is one of today’s best performing altcoins and is trading up nearly 7% at its current price of $32. Yesterday, Litecoin fell to lows of $28, from which it has recovered over 14%.
Equities Market Finds Stability After Recent Volatility
The US stock market has found some stability today, as most major benchmarks are currently trading flat. Despite this, Jack Bogle, the father of the index fund, warned investors that there could be increased volatility in the near future.
While speaking with Barron’s in a recent interview, Bogle said that “trees don’t grow to the sky, and I see clouds on the horizon. I don’t know if and when they’ll arrive. A little extra caution should be the watchword.” He then noted things like large amounts of sovereign and corporate debt, the “upheaval” in global trade relations, and Brexit, as sources of the market’s instability.
Bogle also said that now is a good time for investors to assess how much tolerance for risk they have, as there could be increased volatility in the near future.
“If I had a big liability in a year, I’d get prepared for it right now. You want to be able to fund it without pressure,” he said.
At the time of writing, the Dow Jones is trading up marginally at $23,160. The other major benchmarks are also trading up marginally, with the S&P 500 trading at $2,490, and Nasdaq trading at $6,587.
Featured image from Shutterstock.
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by Cole Petersen on December 29, 2018 at 01:30AM