Latest News

Bitcoin Is Finally Breaking. Why That’s Good News for the Stock Market.

0
Text size

Dreamstime

Bitcoin
 finally broke below $29,000, a level that it’s been able to hold through 2022, and may be starting to break. That could be good news for the stock market—if it’s a sign of capitulation by investors.

Bitcoin has fallen 6% to $27,661.71, its lowest level since 2021. The cryptocurrency has been trading between $29,000 and $50,000 for much of the year. Stifel’s Barry Bannister sees it as the last speculative asset that needs to fall before the market can find a bottom.

“We monitor several factors which we believe will mark the capitulatory low for stocks,” he wrote. “One on that long list is Bitcoin, a high-powered speculative instrument, which we believe still has downside to about $15,000.”

While Bitcoin could lose half its value, the

S&P 500
probably has only 5% more to fall from Wednesday’s close, or about 3,700, Bannister said. With the S&P 500 down 0.8% early Thursday, that could mean stocks are getting closer to a bottom.

Just don’t tell Bitcoin investors that this is good news.

Write to Ben Levisohn at ben.levisohn@barrons.com

We want to retire in a few years, and have about $1 million saved. Should I move my money to a Roth, and pay off my $200,000 mortgage while I’m at it?

Previous article

Approaching Retirement? T. Rowe Price Says You Need This Much Saved Based on Your Income

Next article

You may also like

Comments

Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News