Bitcoin had undergone an impressive bullish correction after slumping almost 85% from its all-time high near $20,000. The price of bitcoin in the early December established an interim bottom level at $3,127 before going towards its monthly high near $4,237, which totaled its correction to nearly 35.5%.
On the other hand, the S&P 500 was dependably undergoing a downside correction after the establishment of its 52 week high at 2,940.21. As December striked, the index noted ten daily selling sessions back-to-back amid mid-term, while causing a crash of nearly 20% from the recent peak, which is its lowest since April 2017.
Overall, the S&P 500 plunged 19.8% by Tuesday from its September 20 record close. The Nasdaq and the Dow depreciated 23.3% and 18.8% from their total record closes set August 29 and October 3, respectively.
S&P 500 Sees Continued Bearish Indicators
Different from Bitcoin, the S&P 500 is reacting to macroeconomic factors that ranges from Fed interest rate hikes to global political scenarios rooting from the Trump administration. A recent tweet from US Treasury Secretary Steven Mnuchin on Tuesday disclosed that he was in talks with the CEOs of the US’ six major banks. It prompted a pessimistic market sentiment over the liquidity among these institutions.
The ongoing US-China trade was war is also heading into a blank in spite of the assurance from both Beijing and Washington. A vice presidential-level meeting between the two powerful economies, as reported on Sunday by the South China Morning Post, that is signaled positive results. But it wasn’t adequate to reinject the optimism into the US stock market.
The S&P 500 is anticipated to consolidate until the new year starts. Most of the traders as well as stockbrokers are away from their place amid the holiday season, that is most likely to reduce the volume in these markets.
In spite of being the two different asset classes altogether, Bitcoin proved as better in the form of return of investment this month.