The Correlation Between Dow Jones & Binance Charts Cryptocurrencies

After a strong bull run, The Dow Jones Industrial Average is now in a slump. A correction is also occurring in cryptocurrency. Could there be a link between these investment worlds?

When crossing over to any investment space, we need to be cautious about using vague terms such “bull and bear” as they can lead to confusion. This is because cryptocurrency has seen gains of over 10x over the course its 2017 “bull run”. At the beginning of 2017, you could have invested $1,000 in Bitcoin and made well over $10,000 at the end. It’s not possible to invest in traditional stocks like this. The Dow gained approximately 23% in 2017.

I pay attention to charts and data, as I understand that it is possible for numbers to be interpreted in your favor. In 2018, crypto saw huge gains, but 2018 has seen a swift correction. To sum it all, we need to be objective in the comparisons we make.

Many who are not familiar with cryptocurrency are shocked at the recent crash. All they have heard is how the early adopters got rich buying Lambos. For traders who have been around for a while, the reason this market correction occurred was the skyrocketing prices of the last two weeks. Many digital currencies made millions of people overnight. It was obvious that they would want to make some of that money.

Another important factor to be aware of is the recent introduction of Bitcoin futures trading. Personally, I think there are some major forces here that want to see cryptocurrency fail. I see futures trading as a positive step towards making crypto mainstream. It should also be considered a “real” investment.

After I said that, it occurred to me: “What if there IS some connection here?”

What if Wall Street bad news affected crypto exchanges like Binance or Coinbase? Could it lead to them both falling on the same day as one another? But what if they were the reverse and crypto increased because people were looking for other places to store their money.

In an effort to not skew numbers and to keep things objective, I decided to wait for a more neutral playing field. This week is good because it’s a time in which both markets saw corrections.

To those who aren’t familiar with cryptocurrency trading, it is not like the stock market. The exchanges never shut down. I have been trading stocks for over 20-years and understand that feeling of being idle on Sunday afternoons.

“I wish I could trade a couple of positions right now. I know that when the markets are open, the price will fluctuate significantly.”

Walmart-like availability can also cause knee-jerk emotional responses that can snowball either way. Stock market traders have the option to hit the “pause” button and let their decision-making process take place overnight.

To create the equivalent of an entire week of trading 바이낸스 차트 , I took the crypto trading data for the past 7 days and the DJIA for the past 5.

Here’s a side-by side comparison for the week of 3-3-18-18 to 3-10-18-18. Due to the fact that 20 of 30 companies it consists are losing money, Dow Jones dropped 1330 point which was a decline of 5.21%.

It is slightly different for cryptocurrency because a Dow does not technically exist. This is changing however as more groups are creating their version. At the moment, it is easy to draw a comparison between the top 30 cryptocurrency in terms of market capitalization. says that 20 percent of the top 30-ranked coins have dropped in the last seven days. Does this sound familiar? Take a look at the whole crypto market. It fell from $445billion to 422billion. Bitcoin, considered the gold standard for crypto, saw a 6.7% reduction in value during the same period. Bitcoin is the gold standard equivalent to gold, and so are altcoins.

Coincidence? Or causation. Is it possible that similar results were achieved? Did similar causes play?

While prices seem to be falling in the same way, it is interesting that the reasons for this are very different. I have already said that numbers can be deceiving, so we need to get the facts straight.

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