US Market Experiences Drastic Trend Reversal While Crypto Plunges

Over the past eight hours, the U.S. stock market demonstrated one of the most drastic trend reversals of 2018. Meanwhile, more than $16 billion was wiped out of the crypto market.

Throughout the past 48 hours, the U.S. stock market and the Dow Jones seemed to be experiencing a steep decline in value, as the Dow Jones crashed from 25,833 to 24,261, by more than 1,572 points. It is unusual for an index in the size of the Dow to fall by over a thousand points within a two-day span.

However, on late December 6, the Dow showed an unexpected short-term trend reversal, adding nearly 700 points within merely six hours.

Inverse Correlation?

Cryptocurrencies often appeal to investors in the traditional financial market for their ability to store value in a market that is generally unaffected by broader markets. While the emerging asset class suffers in dealing with its own volatility, like gold, the value of cryptocurrencies is solely affected by the demand from investors in the…