Welcome to Bitcoin's first bear market. It's a sign of success that you can go down so much and still exist. US stock markets are undergoing a correction after a great run since the Trump election.
Are these two events connected?
Take a look at the two charts below - they look alike.
US stock prices are overheated; they got ahead of themselves. But the fundamentals of the US economy are excellent. Unemployment is down, corporate taxes are lower, most taxpayers will be paying a bit less. Wall Street believes the US economy will continue to expand. Usually that means higher stock prices, but not if exuberance is already priced in.
Perhaps the US stock markets can afford to go down a bit, a light correction, and then gradually climb.
Bitcoin is ending a decade long run. It went up the last few years at a crazy pace. So Bitcoin is "finding its bottom". It's way above zero, and less than $20k.
When you compare the two - say the S&P 500 vs Bitcoin, the S&P 500 wins hands down. Think how much value is created by the 500 companies that comprise the S&P 500. Compare that to the Bitcoin industry, and with all due respect, the S&P 500 is monstrously bigger.
The S&P 500 market cap is $20 trillion.
Bitcoin's market cap is $138 billion.
Bitcoin is .0138% the market cap of the S&P 500. The new kid on the block has a lot of room to grow.
Who will hit the bottom first? What's next - a flat line, slow growth or a roller coaster?
I think Bitcoin will continue to be a roller coaster. The S&P 500 will take a hit and resume it's 100 year pattern of gradual growth.
It is very interesting to look at these two big economic standards together!