Communications of the ACM
Stocks Drop for a 3rd Day Following Bitcoin's Crash and Inflation Concerns
As the world of cryptocurrencies has exploded over the past year, so has its impact on actual companies and therefore financial markets.
Credit: Getty
Wall Street and corporate America have finally bought into Bitcoin, just in time for one of the ugly crashes the cryptocurrency regularly experiences.
Stocks slumped for a third day this week as a bust in the world of crypto — until recently considered a side show to actual financial activity — bled into the broader markets and hammered shares closely linked to the difficult-to-define digital assets.
Markets were also roiled by the release of the minutes of the Federal Reserve's latest meeting, which showed that some of the central bank's officials are considering starting to talk about pulling back on support for the economy. Concern that the Fed might begin to do this — in part as inflation picks up — has been a big driver of volatility in stock markets lately.
A move by the central bank to raise interest rates or take other measures to cool growth isn't likely to come anytime soon, but the mention of a willingness to discuss it was enough to trigger a swoon in financial markets. Yields on government bonds jumped and the S&P 500 — which was already lower — fell further soon after the minutes were released.
From The New York Times
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