The stock market in the United States is now officially in a bear market. This is the fastest change from an all-time high-a bear market, the S&P 500 has ever experienced.
According to all the indicators of the US stocks are now officially in a bear market. It only took 16 days to get here – a new record.
Crypto Winter, Recession?
The headlines of the financial media today confirm the fear that the expected development would be much sooner. After a series of sharp losses, the Dow has fallen since its peak in mid-February, approximately 20 percent.
Many companies report that profits this year will be anemic. Sectors such as technical, manufacturing, airlines, cruise operators and others are likely to find that your gains will dry up this year. Overall, this has spooked investors.
The Coronavirus was really the event of the “black Swan” that nobody expected. In connection with the ongoing oil price war ends you can easily see why the economic forecasts are bleak. The bullish start to the year 2020, the scale of the developments was not foreseen – no one was prepared for it.
For months now, President Trump tries to the stock market boost by fueling the enthusiasm of more and more. His recent speech was not enough, however, to reassure the investors.
What is now possible: a prolonged recession.
Bitcoin, the leading crypto-currency does not seem to pass your Test as a store of value and as a hedge against market uncertainty. Bitcoin is currently at $ 5,700, its market capitalization has dropped to under 100 billion dollars.
From now on, there is some potential for a reversal. However, it is undeniable that Bitcoin simply follows the stock market and his losses multiplied.
All in all, we are in a bear market – and the crypto-space is seriously at risk to experience a further Winter. If that is the case, we can expect more pain on the horizon, while Bitcoin struggles to find a bottom.