财经少华
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Bitcoin vs. U.S. Stocks: The Differences in Rebound
In yesterday's market rebound, both the S&P 500 and the Nasdaq Composite Index closed with bearish candles, indicating a downward closing performance, while Bitcoin achieved a 5.5% rebound. This disparity has raised concerns about the dynamics between cryptocurrencies and the traditional stock market. So, why was Bitcoin able to rise against the trend while U.S. stocks performed weakly in the same market environment?
Bitcoin: A global 24/7 market, trading is unrestricted, cannot be inflated, failure means bankruptcy or liquidation, and there is no national treasury relying on its rise.
Stock Market: Trades only at specific times, with limited participants. Although stocks cannot be inflated, if failure occurs with political backing, they may receive assistance. U.S. fiscal revenue is directly related to stock market performance, so the stock market often receives policy support during crises.
Bitcoin is a true free market, while the stock market is subject to policy intervention. Therefore, during a fiat currency liquidity crisis, Bitcoin prices often lead stock market declines and also lead stock market rebounds. This perspective provides a new understanding of the differences between cryptocurrencies and traditional financial markets.
In yesterday's market rebound, both the S&P 500 and the Nasdaq Composite Index closed with bearish candles, indicating a downward closing performance, while Bitcoin achieved a 5.5% rebound. This disparity has raised concerns about the dynamics between cryptocurrencies and the traditional stock market. So, why was Bitcoin able to rise against the trend while U.S. stocks performed weakly in the same market environment?
Bitcoin: A global 24/7 market, trading is unrestricted, cannot be inflated, failure means bankruptcy or liquidation, and there is no national treasury relying on its rise.
Stock Market: Trades only at specific times, with limited participants. Although stocks cannot be inflated, if failure occurs with political backing, they may receive assistance. U.S. fiscal revenue is directly related to stock market performance, so the stock market often receives policy support during crises.
Bitcoin is a true free market, while the stock market is subject to policy intervention. Therefore, during a fiat currency liquidity crisis, Bitcoin prices often lead stock market declines and also lead stock market rebounds. This perspective provides a new understanding of the differences between cryptocurrencies and traditional financial markets.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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