Crypto Market Cap Surges to $23 Billion Amid Stock Market Recovery

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Recent price movement particularly what was observed on 28 November, shows that the Dow Jones Industrial Average moved upwards by 617 points. This shift in movement means it managed to record its biggest market rally since March this year. Following the unanticipated rebound of the United States stock market, the digital asset market increased in valuation. The whole market managed to surge to $23 Billion as of press time.

The Chairperson of the Federal Reserve, Jerome Powell revealed this Wednesday that interest rates are now in a neutral level following a slight decline. This reflects the performance of the digital asset market and the growth rate of the U.S. economy in recent months.

Investors Have Reason to be Happy

U.S. President Donald Trump hasn’t hidden his stance regarding the growing Federal Reserve interest rates. He has shown his disdain on the matter and has attributed the sell-off of the stock market in recent days to the federal rate hike.

According to Rober Pavlik, an executive with SlateStone Wealth, the declining Federal Reserve interest rates is something that should make investors smile. It is something that they have long anticipated.

As soon as the statement made by Powell was released, the stock market bounced forward by a large margin which is reason for investors to be happy. In the last two weeks, just as it was the case with the U.S. stock market, the digital asset market suffered a sharp decline. According to reports, at one point during this tough period, the entire crypto ecosystem lost an alarming $90 billion of its valuation.

5-day Performance as Indicated by the Dow Jones Industrial Average

Some analysts cited the fight between Bitcoin Cash (BCH) and Bitcoin Cash SV as a primary reason in the decline of the entire crypto market cap valuation. Others argued that the CBOE and CME Bitcoin futures markets have largely impacted the recent price trend of the top digital asset by market cap Bitcoin (BTC).

A few numbers of crypto investors theorized that the decline in confidence towards the U.S. stock market led investors to liquidate their high-risk assets such as cryptocurrencies. Insisting that investors feared a crash of the stock market could hit the digital asset market.
As the stock market slowly recovered, the virtual currency market recovered by $23 billion, with Bitcoin (BTC) recording its largest price surge in one day since April this year. Back then the price of BTC increased from $6,000 to $8,000 in minutes.

Where is the Digital Asset Market Heading?

With extreme volatility ranging from $3,000 to $5,000, technical analysts generally believe a pullback to the lower region of $3,000 remains a possibility. BTC recovered from its $3,300 low to $4,300 in just two days, and it shows a decent amount of momentum. However, this isn’t strong enough to show beyond any doubt that the bottom of the digital asset is established.

Finally, we must remember that while there is no direct correlation between the cryptocurrency market and the U.S. stock market, a successful U.S. economy throughout recent months and months to come has the potential to draw more investors into the crypto space. This is true considering the long-anticipated ICE and NY Stock Exchange January launch of Bakkt futures market.


Source:  SMARTEREUM