Crypto shows complete independence from the U.S. stock market during the Christmas Rally

December 27, 2018
Chris Wheal

One of the questions where experts’ opinions largely differ is whether or not crypto and fiat trading markets are actually related. Some have even suggested that the level of crypto volatility actually corresponds to the current condition of the fiat stock market. However, the most recent chain of events, also called by some as the “crypto winter” might actually show the opposite. For instance, while U.S. stock market was enjoying the gains, cryptocurrency was falling down, despite the victorious rally fiat was heading with into 2018. Same difference – only now, the contrary one – was experienced just recently.

crypto independence

Through this year’s first three quarters, the U.S. stock market has been performing exceptionally well. However, earlier in October, the U.S. fiat stocks started to drown. In fact, the S&P 500, the Dow Jones Industrial Average, and the Nasdaq Composite Index have completely wiped out most of their earlier gains. The stock markets across America have experienced the losses compared only to the Great Depression of 1931! As of today, the U.S. stock market has lost as much as 16.3 percent.

On the contrary, the cryptocurrency trading markets have experienced a strong “Christmas rally,” with Bitcoin gaining as much as 22.6 percent, again trading back at $4,000. Additionally, for the first time this year, the remaining cryptocurrency markets have outperformed Bitcoin with a 28.7 percent gain, which also added additional $30 billion in market capitalization.

Cryptocurrencies are still volatile and cannot be considered a complete “safe haven” asset, however, their proved independence from the traditional stock market might open new avenues for institutional and public involvement, experts say. This could include everything – from fund managers starting to include Bitcoin in their portfolios to retirees investing in crypto for their 401(k). Click here to check out our report on some of the best performing coins currently.

Post written by Chris Wheal
Chris Wheal is editor of OpenLedger's news and features service. An award-wining business journalists himself, he runs a team of freelance journalists from across the UK and north America.

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