TL; DR
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Between Wednesday evening and Thursday morning, the S&P 500 index (also known as the 500 largest companies in the US) lost 1.42% in value.
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In the same time frame, crypto market caps soared!
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This is in no way a confirmation of a complete disconnect…but it’s not a bad sign!
Full story
Fun fact: our brains can only process a limited amount of information at a time, so they will often make assumptions to conserve processing power.
For example:
Just everyone assumed Jeff, your mom’s friend, was great because trusting your mom’s taste meant they didn’t have to think harder than necessary.
When in reality, Jeff was a total snooze-fest of a human being, who gave terrible birthday/Christmas gifts and confiscated the remote.
(Yes, no – book a therapy appointment now – far ahead of you!).
Point is: we all make assumptions.
A common assumption in the crypto world is: if stocks fall in price (particularly tech stocks), crypto will follow suit.
But! There is a theory that as time goes on and the crypto space matures, it will decouple from the stock market, making cryptocurrency a more robust asset class.
And yesterday we received a strong signal that this transition might be underway.
Between Wednesday evening and Thursday morning, the S&P 500 index (also known as the 500 largest companies in the US) lost 1.42% in value.
…which doesn’t seem like much, but is actually a LOT when you consider that the S&P owns tens of trillions of dollars ($39.444 trillion to be exact).
In the same time frame, crypto market caps soared!
Bitcoin added ~$10 billion, Ethereum added ~$13 billion, and Solana added ~$4 billion.
This is in no way a confirmation of disconnection.
…but it’s not a bad sign!
