US-based stocks have displayed an impressive performance in the last couple of months despite the weakening US dollar, while Bitcoin still struggles to break past the $12,000 resistance level.
Bitcoin is hovering in the price range of $11,200 to $11,800. At the time of writing, it is changing hands at $11,886.21.
Meanwhile, altcoins were able to gain momentum in mid August; Bitcoin was able to pierce through the psychological barrier of $12k. However, the breakout was short-lived, causing the price of Bitcoin to drop back below the crucial resistance zone of $12k.
The breakdown caused investors and traders to look for more downside as several bearish arguments have emerged.
On the other hand, many S&P 500 companies have gained up to 60% from March 23 and 13% since June 30. Their August performance has not been too shabby as well — up 7%, which is arguably the best August record since 1984. Overall, the US stock market has gained 35% in the last 5 months.
There was a surprising market growth over the past few months despite the world being plagued by the coronavirus pandemic, causing the global markets to fall. Because of COVID19, many companies cannot resume normal operations.
The stock market is remaining afloat despite the global predicament, due in part to the US government printing more money, helping many companies from insolvency.
Still, Cornell University Professor Emin Gün Sirer said that stocks are actually “overvalued by every traditional metric,” and that the “money on the sidelines will look for worthy investment venues.”