Bitcoin in Uncertainty: Goldman Sachs Warns of Market Crash

Bitcoin entered the new week with considerable uncertainty. There is great uncertainty in the markets because investors do not know what to expect from the release of anti-coronavirus measures. An investment bank strategist of Goldman Sachs , thinks the turn of the millennium Internet fever may recur.

New Internet Fever? Measures against coronavirus are loosening and fear is growing

Goldman Sachs’ strategist found that the five largest companies now cover as much as 20% of the largest S&P 500 index. The entire index trades 17% less than at its peak in February this year. The median of shares rose by 28%.

This means that more stocks within the index are falling than rising. In fact, as can be seen from the graph, the difference is completely disproportionate. Virtually every American company is in decline, which is a big problem for the future. If a crisis comes, stock markets could hit hardest this time.

High correlation: a problem for Bitcoin

The correlation between the stock market and cryptocurrencies is on a sharp rise. This is despite the fact that the narrative of the association of cryptocurrency with gold is often promoted. During the crisis period, many investors are increasingly turning to gold, which is rapidly decreasing in its physical form.

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