Why Bitcoin, Ethereum Are Leading Stock Markets Lower
The stock market reacted negatively last week to fears of higher interest rates and a slowing economy, and it didn't appear that the new week would begin any differently. As of 8:45 a.m. ET, futures contracts on the Dow Jones Industrial Average (DJINDICES: ^DJI), S&P 500 (SNPINDEX: ^GSPC), and Nasdaq Composite (NASDAQINDEX: ^IXIC) had moved down another 1%, adding to sizable declines of roughly 4% to 5% last week.
The cryptocurrency markets haven't helped investors much lately, with prices of Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), and other well-known digital assets failing to provide any ballast for diversified portfolios. Indeed, the losses for Bitcoin and Ethereum Monday morning were even more extensive than for the stock market. That has some investors wondering whether the long-term promise of cryptocurrencies as a game-changing financial innovation will be able to survive an adverse cycle of tighter monetary policy and higher interest rates.
Crypto markets are open all weekend long, but most of the downward move in digital assets didn't come until early Monday morning. After trading on either side of $20,000 on Saturday and Sunday, Bitcoin fell as much as $1,600 early Monday, and shortly before the stock market's open, the digital asset was trading at $18,800.
Source Fool.com
