Crypto Markets Hopeful In 2019 While Stock Markets Begin The Year With A Downtrend!

The financial markets have a tendency of surprising its stake holders by defying the predicted directions. At the moment, stock markets appear to be on a downtrend while digital assets are still struggling to find the support level after the bearish 2018 crypto market.

According to Tom Lee, the bullish crypto enthusiast, the stock markets are at point of mid-life crisis hence the much disposal of securities recently. Mr. Lee during the interview at CNBC added that 2019 might be bearish for the securities markets.

Wall Street bull @Fundstrat's Tom Lee says the sell-off is a midlife crisis for the markets. Expects earnings season to be ugly. pic.twitter.com/t5Lb9qowkz

— CNBC's Fast Money (@CNBCFastMoney) January 3, 2019

Earlier on, Lee had made a prediction of the stock market rallying by 10% towards the end of 2018. However, this never came to pass and instead the market has dipped over the past few days owing to a couple market forces. In his argument, Lee suggests that the biggest influence of the selloff was an interest rate hike by the FED while the Us-China trade war & tariffs also contributed.

The monetary explanation given by Tom Lee was quite simple;

“If you tighten financial conditions you force people to liquidate positions, forcing shrinkage. You see chaotic moves across markets, that’s damaging because that takes a lot of time to fix,”

One of the biggest companies to be hit by the stock market plunge was Apple, the large cap has lost over 10% within a week. The management has attributed the downtrend to reactions from China-US trade wars under Trump’s administration.

The crypto markets on the hand have been on a downtrend since the 2017 BTC rally. Basically, a good part of 2018 saw investors liquidate their digital assets while projects within this arena struggled to beat the market odds. Well, this may soon change according to technical indicators such as the GTI Vera Convergence Divergence that show a probable BTC rally in 2019. Bloomberg reported that this indicator’s prediction concurs with their Galaxy Crypto Index and the past week has been a high buying volume for Bitcoin.

Furthermore, other market players such as Mati Greenspan said that T.A show that altcoins are almost hitting the support level as opposed to a resistance mark. These sentiments were again shared by Joseph Lubin, Co-founder Ethereum, stating that 2018 was a bottom for digital currencies causing panic amongst the stake holders in crypto markets.

Going by the above logic, one would predict a better year for the crypto markets while the downtrend for stocks remains pegged to the outcome of the affecting macroeconomic factors.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

171 +