Black Thursday

The ongoing debate of crypto’s correlation with conventional markets may be far from over, but when the Dow suffers the worst trading day since 2020, there’s enough pain to go around for everyone.

• Bitcoin dropped significantly yesterday, sharply contrasting a new hope provided on May the 4th when price jumped to briefly touch the $40,000 level before rolling over.
• Traditional markets didn’t fare well at all. The Dow Jones Industrial Average lost over 1,000 points while the Nasdaq closed with losses at nearly 5%. This marks the worst drop either has experienced in a single day since 2020.
• Some took advantage of falling BTC prices. The Luna Foundation Guard reported purchasing approximately $1.5 billion Bitcoins to add to their reserves, though the purchase may have been made before the BTC dump.
• The rate hike announced by the Fed on Wednesday played a part in worsening conditions across most markets. Even though the increase didn’t exceed most expectations, the combination of war in Ukraine, China’s lock-down status and Russia’s oil policy formed a perfect storm for contracting market conditions.

Downturns happen in every market. The path to the top is never a straight line. Focus on fundamentals and strengthen your resolve. You can’t appreciate the tops without experiencing the bottoms.