Equity markets and cryptocurrency markets alike plowed forward in 2017. Each market saw incredible gains throughout the year, especially cryptocurrencies. Unfortunately, that trend reversed in the beginning of 2018. Cryptocurrency markets started to see consistent losses, and even equity markets took a temporary tumble. Most equity markets saw better gains than cryptocurrency markets in 2018.
A Reversal In Performance (At Least Temporarily)
From April 7-13, the cryptocurrency markets surprised with notable gains. Signs point toward the bulls returning to the market, at least temporarily. The coming weeks will reveal whether this is a new trend, or a temporary boost for cryptocurrencies. Meanwhile, equity markets remained relatively flat with meager gains. Continued concerns in the global economy are hurting equities each day.
The week of April 7-13 saw major cryptocurrencies gain at least 10%. For instance, IOTA gained nearly 42% in value that week. Litecoin saw a more modest 11.1% rise. None of the cryptocurrencies are close to their 2017/2018 highs. It nonetheless appears the bulls may return to the market in the near future. However, investors may question the ceiling on cryptocurrencies for the months to come, exercising caution unlike before.
In contract, the equity markets experienced a rough week on multiple fronts. Tariffs and trade wars between the United States and China have spooked investors. Markets are handling the issue with caution, dropping some weeks and posting meager gains at other times. For the time being, these trade war concerns won't fade away as things look to intensify moving forward. No major market saw a gain over 4% for the April 7-13 week.
Where Are The Markets Heading In The Future?
Cryptocurrency markets experienced a jolt for the first time in a long time. On the other hand, equity markets took a pause amid trade war fears. Things could easily reverse from week to week, depending upon developments in the market. Cryptocurrencies have a higher chance of seeing the bull market return, though. For equity markets, trade war concerns will dampen performance until the matter is sorted out.
Investors and analysts will see what unfolds in the next week soon enough.
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