Bloodbath in Global Markets. Bitcoin Holds.

 

It was an ugly day on Wall Street. No shortage of sad broker faces circulating around the intertubes.

I am freaking out man.

The major averages all finished down for the day, with the Dow Closing at 17148.94 down 276.09, and the S&P down 31.28

Not a great way to start the year, the worst opening day since 2008.

Source: cnbc.com
Source: cnbc.com

But bitcoin just took it in stride as of this posting .

source: winkdex.com
source: winkdex.com

 

So what does this say about bitcoin, has it been established as a safe haven asset? It’s still very early to say, but it is impressive how bitcoin held firm on one the worst global trading days in bitcoin’s history.   On a day when many unicorns and tech stocks had their market caps slashed, bitcoin a supposed “tech” play, just stood its ground.

We can probably expect more turbulence in the global markets for 2016.  And it will be interesting to see how the worlds perception of bitcoin evolves, if it continues to outperform and retain value in the face of uncertain economic times.

 

Bitcoin Market Sells Off Briefly in Response to Fed Interest Rate Hike

For the first time in almost a decade the Federal Reserved has raised interest rates a .25 percent and set the new rate target to between .25 percent and .5 percent.   The expectation in the markets is the Fundamental shift by the Fed has set in motion a plan to incrementally raise rates through 2016.

 

BTC_Chart_1438_121615

 

The response in the Bitcoin market was a brief sell off which saw the intraday price of Bitcoin on the Bitfinex exchange trade from $454.00 down to $446.50. Bitcoin quickly recovered and is now trading again at $454 as off 2.37 PM Eastern time.

Interest rate increases have traditionally meant a stronger dollar.  Continued appreciation by Bitcoin in the face of U.S. rate hikes would be extremely bullish.