There’s still only one story in town at the moment: the sell-off in global stock markets, led by the Dow Jones. The Dow had, of course, been on such a steady upward grind that a correction was inevitable, but there appears no evidence thus far to indicate a major change of direction has occurred. Stockholders valuations might make pretty uncomfortable reading this weekend but the stocks themselves retain their intrinsic value. It’s been interesting to see how alternatives have performed in the wake of this turbulence. Gold (XAUUSD) has not benefited from any ‘safe haven’ buying, Bitcoin (BTCUSD) has also continued its decline, although some buying interest has emerged. Bitcoin remains an illiquid & immature market where the sheer unpredictability of the asset manifests itself in irrational swings, similar to playing a game of catch with a hand grenade.
Despite Bitcoin preachers proclaiming every bit of buying interest as a sign of the Crypto Second Coming no-one has any idea how far in either direction this is likely to go. For the time being at least the way to win is wait and watch. There are opportunities being created, but the Bears will not relinquish their grasp on the markets as easily as some might hope.