Ethereum co-founder Vitalik Buterin likened the US stock market to cryptocurrencies in a Twitter post.
He says many digital assets are expected to “normalize” and mature to the level of traditional assets. Instead, some of the world’s largest companies trade volatile altcoins.
Daily stocks became cryptocurrencies
This kind of comparison between stocks and cryptocurrencies first began to appear in late February, when the most valuable stock sale in history was just beginning to gain momentum.
As reported, the S&P 500’s chart for February 28 looked like your regular Bitcoin dump when the cryptocurrency was still relatively stable.
Things got really ugly in early March, when it became clear that Bitcoin had become highly correlated with the broader market. On March 12, BTC recorded its biggest daily loss in seven years (more than 51 percent).
On March 15, the S&P 500 fell 11.98 percent, the third-largest drop in the index’s history, first introduced in 1923.
This was followed by a rapid V-shaped recovery for both Bitcoin and Q2 stocks.
Another volatile trading session
On June 11, the most brutal day for Wall Street since March, the Dow, another benchmark index, fell nearly seven percent (1,862 points).
This carnage was not ignored by cryptocurrency investors – Bitcoin fell by more than eight percent.
Despite the strong opening, the stock market’s upward movement quickly ran into problems after the Federal Reserve warned of “fairly permanent” economic damage from the pandemic and dragged BTC to a daily low of $ 9,230 on the Bitstamp stock exchange.
Bitcoin has since recovered to its current price of $ 9,453 in tandem with shares, as volatility remains.