Is There a Correlation Between The Dow Jones & Cryptocurrency?
After a rather nice bull run The Dow Jones Industrial Average has had a rough couple of weeks. Cryptocurrency also is experiencing a correction. Could there be a correlation between the two investment worlds?
We need to be careful using vague terms like “bull and bear markets” when crossing over into each investment space. The main reason for this is that cryptocurrency over the course of its amazing 2017 “bull run” saw gains of well over 10x. If you put $1,000 into Bitcoin at the beginning of 2017 you would have made well over $10,000 by the end of the year. Traditional stock investing has never experienced anything like that. In 2017 the Dow increased approximately 23%.
I’m really careful when reviewing data and charts because I realize that you can make the numbers say what you want them to say. Just as crypto saw enormous gains in 2017, 2018 has seen an equally quick correction. The point I’m trying to make is that we need to try to be objective in our comparisons.