Posted on

Cryptocurrencies Fall as Dow Jones, NASDAQ Plummet

0 Total shares

Panic gripped the Street on Wednesday.

The Dow Jones fell 800 points.  The tech-heavy NASDAQ was falling to its 200-day moving average. All this volatility reared its ugly head in the worst month of the year.

Not helping, bond yields were on the rise.

The benchmark 10-year Treasury note yield rose to 3.25% and hit its highest level since 2011. Additionally, the 30-year bond yield reached its highest mark since 2014.  Neither sat well with traders.  That’s because they lead to expectations of a tighter monetary policy, which can cap company profits, potential dividends, and throw a wrench into things.

Going along for the ride, cryptocurrencies fell, too.

Ethereum is down another 10.5%.  Bitcoin just fell 4.2%.  XRP is down 11.6%.  Stellar just fell another 11%, as well.  All as fear grips the markets.

However, Don’t Panic

Pullbacks are healthy.

The pullback — particularly for tech stocks – was needed, argued Joe Heider, president of Cirrus Wealth Management, as noted by CNN.  “The selloff is healthy.  Since the market bottomed in March 2009, it’s seen more than 10 years of growth stocks leading the way non-stop.”

However, as long as the economy is growing, it’s nothing to be concerned about at all. In fact, it may be another buying opportunity for cryptocurrencies.

Don’t Follow the Herd

One of the key reasons that many investors underperform in the market is because they move in and out of assets at the wrong time.  An investor sees everyone else making money from rising markets. That’s when they tend to throw every spare dollar into their investments. Unfortunately, when that same investor sees a group of other investors selling, that investor sells, too.

In short, they get caught up in the herd mentality.  It is evident in the markets, as well as cryptocurrencies.

Remember that markets are resilient

Don’t let a pullback chase you from the market.  Remember, they’re resilient.



Want the latest crypto news? Join our Telegram Channel

Daily updates