Media Outlets Blast Bitcoin as Stocks Approach Bear Market Territory
The mainstream media narrative regarding Bitcoin (BTC) and other cryptocurrencies has largely been the same since last year’s bull run, drawing erroneous comparisons between the blockchain industry and the infamous dot-com bubble or worse, the Beanie Baby bubble.
The headlines have gotten worse in recent weeks as the crypto market has added further losses fueled by the drama and uncertainty surrounding the Bitcoin Cash (BCH) fork and, more importantly, a global investment environment that is becoming increasingly risk-off.
This trend can be seen across markets. For instance, the S&P 500 is trading about 9% below the record high made in September. Notably, Morgan Stanley recently stated that more than 40% of the S&P 500 stocks are down at least 20%, meaning that they are officially in a bear market.
Among the stocks currently trading in a bear market are the FAANG stocks — Facebook (FB), Amazon (AMZN), Apple (AAPL), Netflix (NFLX) and Google (GOOGL), each of which have fallen steadily over the last 6 weeks amid disappointing earnings numbers and forecasts.
The global sell-off has not been limited to stocks, as oil prices have plummeted into bear market territory in only the last few weeks — comically, traders and analysts were calling for $100 a barrel well into October.
Thus, when taking a broader look at global markets, the current price action of cryptocurrencies comes as less of a surprise, despite the sensational headlines coming from the MSM. In any risk-off environment, the more volatile assets will be sold off first, and cryptocurrencies certainly qualify as a risky asset.
If this latest sell-off tells investors anything, it’s that the crypto market is still relatively immature and perhaps more intertwined with global markets than most realize.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.