Once again, cryptocurrency and stock market results are diametrically opposed. But it’s worth starting with the economic dates. In Q3 2023, US GDP grew by 4.9% (with a forecast of 4.3%), the highest rate since Q4 2021. The U.S. labor market is still just as strong, with no signs of cooling off.
🟢 Cryptocurrencies have risen noticeably. During the working week, the capitalization of digital assets rose by 10.5%. The iShares Bitcoin Trust (BlackRock’s spot BTC-ETF) was registered with the DTCC. Also, the court ordered the SEC to review Grayscale’s application. This news created an important fundamental push for the price. The growth was accompanied by increased volumes and local short squeezes. BTS broke the correlation with shares and grew in unison with gold.
🔴 On the contrary, the stock market fell. The S&P 500 corrected by 1.95% and the Nasdaq by more than 2.5%. Disappointing reports amid the Fed’s tight monetary policy are hitting corporate profits harder and harder. The irrational investor optimism seen in Q1 and Q2 of this year is starting to evaporate. There is a great risk of correction by another 3.5% – 4.5%. The situation can be saved by a good AAPL report, but even this statement is questionable.
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