There’s another violent crash with the cryptocurrencies today. Bitcoin is now well below $10,000, Ethereum is now battling with the 800 mark, Ripple is now battling below the $1 mark.
So there seems to be something brewing up in the crypto country – and if this continues, it will also be dangerous for the stock markets, says Christopher Harvey from the major US Consumer Bank Wells Fargo at CNBC.
At present, this is not yet the case, according to Harvey – but there is a danger if the downmove of the cryptocurrencies lasts longer, i. e. not only for two days, but for weeks. This would mainly affect tech stocks, but also financial stocks.
One often underestimates at present, according to Harvey, how strongly the cryptocurrencies are already anchored in the financial markets – the market for cryptocurrencies has grown from day to day, and therefore already accounts for a considerable share of the financial markets, and this in the various regions of the world. At the same time, many equity investors would not realize how big their exposure in cryptocurrencies is, in fact, when they hold tech stocks.
This doesn´t seem to have really penetrated the stock markets’ consciousness, one can presume. But perhaps it’s no coincidence that the US Stock markets have only woken up from their euphoria once in a while – and perhaps we will only know later on whether a decisive reason for this was the sale of the cryptocurrencies!