Is there a connection between the Dow Jones and the cryptocurrency?

After a very good bull run, the Dow Jones Industrial Average went rough for a few weeks. Cryptocurrency is also experiencing an adjustment. Could there be a connection between the two investment worlds?
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We need to be careful when using vague terms like “bull and bear markets” as we move into each investment area. The main reason for this is that the cryptocurrency gained more than 10 times during the “bull run” in 2017. If you invested $ 1,000 in Bitcoin in early 2017, you would have earned more than $ 10,000 by the end of the year. Traditional equity investment has never experienced such a thing. In 2017, the Dow grew by about 23%.
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I’m really careful when looking at data and graphs, because I understand you can say what the numbers want. Crypto saw a huge gain in 2017, and 2018 saw an equally rapid adjustment. The point I want to make is that we should try to be objective in comparisons.
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Many newcomers to the crypto-currency camp were shocked by the latest crash. All they heard was how the early adopters got rich and bought Lambos. For more experienced traders, these market adjustments were quite open due to rising prices in the last two months. Recently, many digital currencies have made many people millionaires overnight. It was clear that sooner or later they would want to take part of this profit off the table.
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Another factor we really need to consider is the recent addition of Bitcoin futures trading. Personally, I believe that there are great forces here who want to see the failure of the cryptocurrency managed by the old guard. I see futures trading and the excitement in crypto ETFs as positive steps towards the mainstream of crypto, and I consider it a “real” investment.
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Saying all this, “What if there’s a connection here?” I began to think.

What if the bad news on Wall Street affected crypto exchanges like Coinbase and Binance? Could it cause both to fall on the same day? Or would it be the opposite and lead to an increase in cryptocurrency when people are looking for another place to park their money?
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In the spirit of not trying to bend the numbers and stay as objective as possible, I wanted to wait until I saw a relatively neutral playing field. This week is as good every day as it represents a period of adjustment in both markets.
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For people unfamiliar with cryptocurrency trading, unlike stock exchanges, stock exchanges are never closed. I’ve been trading stocks for over 20 years and I know very well the feeling of sitting on a lazy Sunday afternoon,
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“I really wish I could take one or two positions now, because if we take into account when the markets open, the price will change.”
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A Walmart-like presence can contribute to knee-jerk emotional reactions that can throw snowballs on both sides. With the traditional stock market, people have the chance to press the pause button and make their decisions overnight.
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I took the last 7 days of crypto trading data for DJIA and the last 5 days to match a weekly turnover.

Side by side compared to last week (3-3-18 – 3-10-18). The Dow (due to 20 out of 30 companies losing money) fell 1,330 points, or 5.21%.
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The comparison for apples for cryptocurrencies is a little different, because the Dow is not technically available. This varies, although many groups create their own version. The closest comparison during this period is to use the first 30 cryptocurrencies in terms of total market value.
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According to Coinmarketcap.com, 20 of the first 30 coins fell in the previous 7 days. Familiar sound? If you look at the entire crypto market, the size has dropped from $ 445 billion to $ 422 billion. Bitcoin, seen as the gold standard equivalent, saw a decline of 6.7% over the same period. As with Bitcoin, switch to altcoins.
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Coincidence or cause? How come we have seen approximately similar results? Are there similar reasons in the game?

Although the fall in prices seems to be similar, I am interested in the fact that the reasons for this are completely different. I’ve told you before that numbers can be deceptive, so we have to pull back the layers.

Key news affecting the Dow:

According to USA Today, “Strong wage data has raised fears of incoming wage inflation, raising concerns that the Federal Reserve may need to raise interest rates three times this year.”
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Because crypto is not centralized, interest rates cannot be controlled. This could mean that in the long run, higher rates could cause investors to put their money elsewhere in search of higher returns. Crypto can come in a very good game.

If there were no interest rates, what caused the crypto adjustment?

This is mainly due to conflicting reports on how the positions of a number of countries will affect the market. People around the world are worried about whether countries will even allow them as a legitimate investment.

Last week, some good news came from congressional statements by Jay Clayton (SEC President) and Christopher Giancarlo (CFTC President). The point was that while they wanted to eliminate bad players and ensure compliance with AML laws, they also wanted to allow innovation.

Undoubtedly, the connection between similar results between the two worlds is uncertain.

We all know that markets do not like uncertainty. But uncertainty is temporary. Something that causes anxiety one day can sometimes be resolved overnight. There are times when the news is so shocking that it paralyzes the market for months and even years.

The key is to filter all this information and decipher what is real and what is not.

Since I’ve been on both stocks and cryptocurrencies for a long time, I believe it might be better to be careful with both. The opportunity to make a profit is available every day. This is especially true in cryptocurrency, as I often bought a coin that dropped 30% in the last day and then dropped 30%, but returned it within a week or more.

I would recommend being as diverse as possible (this varies depending on the situation of each). There are days when one is up and the other is down. For a moral boost, it’s nice to have the option to sign up for an account that has a better day. If you have an account in both worlds, maybe you can link it.

One thing is for sure, the crypto is here to stay and will make the investment more interesting.