Crypto Edges Up As Dow Jones Posts New ATH On Reopening Trade

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Last Updated on 11 March 2021 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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Analysts wondered whether the rise of Bitcoin and Ethereum over the past week was in any way linked with the $1,400 stimulus cheques that ordinary Americans would soon be receiving after President Joe Biden passed a $1.9 trillion stimulus package.

As the US economy slowly started to realize that the end of the pandemic was in sight, the Dow Jones posted a new All-Time High, mostly because of what’s called the reopening trade. The tech-heavy Nasdaq lagged behind and remained in correction territory (10% off the market top)

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Stimulus crypto and reopening trade?

The great number of messages in crypto social media reminding you how much your stimulus cheque would now be worth if you had invested it in Bitcoin (or Ethereum for that matter) are sure to have an effect, admit many crypto analysts.

People will indeed once again simply convert that cheque into Bitcoin via Coinbase, just as happened last April.

It is however unclear whether that, known as stimulus crypto, was the reason behind Bitcoin and Ethereum slowly grinding towards their all-time-highs again.

At the time of writing, Bitcoin is trading at $54,800 and Ethereum at $1,750. On the broader altcoin market, the rises of Binance Coin, Uniswap, Wrapped Bitcoin and Dogecoin over the past week are striking.

Over in the world of classic finance, the Dow Jones hit a new all-time-high of 32,000 points, thanks to what has become known as the reopening trade.

Market commentators say this is because investors take their money out of stocks like FAANG (Facebook, Apple, Amazon, Netflix and Google) and Tesla and into stocks that will do well as the economy reopens and the pandemic ends (think of travel, brick and mortar shops and grocery stores).

Dotcom redux?

During all this euphoria of rising crypto and Dow Jones at record highs, there seemed to be one outlier, namely the tech heavy Nasdaq. That market was in fact still in correction territory, meaning it’s 10% down from it’s top on 12 February.

The last time that happened, that the Dow Jones and the Nasdaq traded so out of sync with each other, was in August of 1999, or pretty much just before the Nasdaq imploded because of the Dotcom bubble bursting. A sign of things to come?