Bitcoin BTCUSD, +1.35% is supposed to be an asset that isn’t highly correlated with equity markets, or any other traditional asset for that matter, but some analysts have pointed out that the cryptocurrency has traded in closer step with parts of the market amid the recent turbulence in equities as investors attempt to assess the most effective strategies for playing an economy recovering from the worst pandemic in more than a century.
Bitcoin prices are down 28% from a peak at $64,829.14 in mid-April, and Sunday’s trade was choppy for the world’s most prominent crypto after a tweet from digital-asset bull and Tesla Inc. TSLA, +3.16% CEO Elon Musk was interpreted as a threat to unload the $1.5 billion investment in bitcoin that the electric-vehicle company announced back in February.
The Russell 2000 closed Friday notching its largest weekly percentage decline since March 26, off 2.1%. It was a bruising week for stocks, generally, even if equities enjoyed a solid rally to end the five-day trading period that had been marked by unease about inflation in the middle of the week. The Dow Jones Industrial Average DJIA, +1.06%, S&P 500 SPX, +1.49% and the technology-laden Nasdaq Composite Index COMP, +2.32% all logged their steepest weekly losses since Feb.
I feel bad for those who bought in much higher. Perhaps it will keep going up if no one sells
The good news is every level of support seems to be broken.