- US stocks have dipped 10% since peaking on January 26, an official correction.
- Cryptocurrencies like Bitcoin have fared even worse during that same time period.
The US stock market is officially in a correction, defined as a 10% decline from its most recent high.
The benchmark S&P 500 closed 10.4% below its record high on January 26. Bitcoin has fared much worse during that same time period. In fact, it’s down nearly 28% since US markets began their slide in late January, according to data from CoinDesk. That includes a rebound during most of this week. At last check, it was trading at 8,298.
Bitcoin, the largest cryptocurrency by market capitalisation, has had a tough start to the year following news of a regulatory clampdown in South Korea and declining trading volumes. The total capitalisation of the market for digital coins has shed over $US170 billion since January 26.
Bitcoin has not been the only coin to experience a rout worse than the stock market:
- Ethereum: $US800, -$US270, (-25%)
- Litecoin: $US146, -$US25, (-18.4%)
- Bitcoin Cash: $US1,336, -$US320, (-20%)
As for US equities, this is the fourth correction for the index since the bull market began in March 2009, according to Bespoke Investment Group.
Stocks have been on a slide since January 26. But selling pressure ramped up this week, worsened by technical factors including the implosion of trading strategies that had bet on low volatility.