While the American stock exchanges got an unexpected red week while Bitcoin went the other way.
American Stock exchanges down
US stock exchanges had a strong red unexpected week, where weak quarterly figures from the tech sector overshadowed strong macroeconomic figures.
Dow Jones closed at 24,688.31, down 1.19 percent. That means the index dropped 296.24 points, but was at the lowest level down 539 points.
The technology-rich Nasdaq index fell at most three percent, but eventually ended 2.1 percent to 7.167.21.
The S & P 500 fell 1.7 percent to 2,658.69. It is ten percent lower compared to the record in September.
“The market is starting to become sluggish, with Nasdaq, who gets the beating of Amazon and Google,” says DFD boss Dave Lutz in Jonestrading, according to Marketwatch.
While the traditional market is down, Bitcoin is up
Bitcoin got a much calmer week. On Friday, Bitcoin was up one percent and was traded for around $ 6,500, according to CNBC.
Brian Kelly, CEO and founder of the cryptocurrency exchange BKCM believes that crypto investors are segregated from the broader markets.
“I’ve never heard anyone say Microsoft fell, it’s best I sell bitcoin to cover the margin,” he told CNBC.
Earlier in October, cryptocurrencies were affected by the uncertainty surrounding stock markets when Dow Jones dropped as much as 1300 points in two days. Bitcoin then fell six percent when the market for cryptocurrencies during that period lost 18 billion dollars of value.
The volatility of bitcoin has made it almost impossible to use it as a viable payment method. Instead, bitcoin has been regarded as “digital gold,” writes the news agency.
Is Bitcoin starting to increase its independence to the traditional economy? Feel free to voice your opinion in the comment field below.