Crypto: Protecting You From the Dangers of Stock Market Volatility?

TL;DR

• Between Wednesday night and Thursday morning, the S&P 500 index (aka the top 500 companies in the US) shed 1.42% in value.

• In the same time frame, crypto ​market caps​ were climbing!

• This ain't a confirmation of complete decoupling by any means...but it's not a bad sign!

Full Story

Fun fact: there's only so much information our brains can process at any one time, so they'll often make assumptions in order to save processing power.

For example:

Everyone just assumed your mom's boyfriend Jeff was awesome, because by trusting your mom's taste, it meant they didn't have to think any harder than they needed to.

When in reality, Jeff was a total snooze fest of a human, who gave terrible birthday/Christmas gifts and hogged the remote.

(Yep, no - booking a therapy appointment now - way ahead of you!).

Point is: we all make assumptions.

A common assumption in the crypto world is: if stocks drop in price (specifically, tech stocks), crypto will follow suit.

But! There's a theory that as time goes on and the crypto space matures, it will decouple from the stock market, making cryptocurrency a more robust class of investment.

And yesterday, we got a big signal that this transition may well be underway.

Between Wednesday night and Thursday morning, the S&P 500 index (aka the top 500 companies in the US) shed 1.42% in value.

...which doesn't seem like much, but is actually a WHOLE lot when you consider that the S&P holds tens of TRILLIONS of dollars ($39.444 trillion to be exact).

In the same time frame, crypto ​market caps​ were climbing!

Bitcoin added ~$10B, Ethereum added ~$13B, and Solana added ~$4B.

This ain't a confirmation of decoupling by any means.

...but it's not a bad sign!