Things aren’t looking good for the stock markets in 2022 as the Nasdaq 100 total returns have slumped for the first time in 13 years. The Nasdaq 100 total returns fell 42% in 2008 which eventually paved the way for the global economy to crash. For the first time in 13 years, the total 100 returns are in the negative and are down 34% YTD in 2022.
In addition, the Nasdaq 100 index which represents the technology sector is down 34.15% from year to date. Nasdaq also closed to its two-year low of 10,700 points this week, which it previously reached in July 2020. While the markets crashed in 2020 due to fear of the Covid-19 pandemic, it hasn’t been able to fully recover from the disaster.
Also Read: UK Economy Falls by 0.3%, Fear of Recession High
Meanwhile, the S&P 500 index is down 23 points on Tuesday reaching 3,612, and is now close to its March 2020 lows. If the S&P levels continue their downward spiral, the stock and crypto markets could begin to crack.
On the other hand, Dow Jones is now near its 52-week low range threatening to plummet further in the index.
A Stock & Crypto Markets Crash Could Be Incoming
The global economy is in muddy waters and could wipe away billions in the next stock and crypto markets crash.
To sum it up the factors that could cause the next stock and crypto crash is:
- Nasdaq 100 total returns are down 34%
- Dow Jones is at its 52-week lows
- S&P 500 index is at its 2020 lows
- US GDP is on the negative side for three quarters
- Uncontrolled inflation rates across the world
All these indicators suggest that a market crash is brewing and could send both stocks and cryptos into a freefall.
Also Read: Should You Invest In Bitcoin, Ethereum & Cryptos In October 2022?
Just recently, JP Morgan CEO Jamie Dimon predicted that a market crash is only six to nine months away. He even stated the next crash could be remembered as “something worse than a recession”. You can read more details about Dimon’s doomsday market crash predictions here.
Therefore, it is advised to remain cautious during this period and not go all-in on Bitcoin and the crypto markets.