Bitcoin Steady While Stocks Fall – Trustnodes

Bitcoin is holding to gains with it up in the past 24 hours by 2.6% while stocks fall some more as Nasdaq drops 1.7%.

Both Dow and S&P fell by even more on opening, down circa 2%, ostensibly on disappointing earnings by banks like JP Morgan and Morgan Stanley.

The dollar continues to strengthen however, up to 109 from 108 on Wednesday as the year long bull run continues in DXY.

But oil is dropping and with some speed, down to $91 for US oil from $95 on Wednesday.

Gas meanwhile continues waving above the significant support line of $6, currently trading at $6.70, with it unclear whether it is sidewaying to go down.

Nor is it clear whether bitcoin is decoupling from stocks with the current green for bitcoin and red for stocks potentially explainable by suggesting it is due to stocks specific factors, in this case earnings.

Yet the disappointing earnings might indicate a slowing down of the economy, which is good for bitcoin because it might mean no more aggressive hikes by Jerome Powell, the Fed chair.

Unless we get the worst of all worlds: rising inflation due to it paying no attention to interest rates, a falling economy due to it paying attention to interest rates, with the economy going down just as much as inflation rises and both at the same time while rates keep on hiking.

Except oil is now falling, so the Fed hikes might be working, and thus Fed might be less aggressive especially as the economic slowdown will add significant pressure.

As a barer asset, bitcoin might be responding more quickly to all this than stocks, especially as stocks are looking back three months with the last quarter earnings.

Rather than a decoupling therefore, we might instead be getting a front-running. A turning point perhaps, though it might take some time for it to become clear.