The S&P 500 and the Nasdaq were coming off of five consecutive days of losses — the longest losing streak in over a year.
After the open, the Nasdaq fell as much as 4% and the S&P 500 fell as much as 1.6%. But it didn’t last.
During testimony, Powell said he expects a “robust and complete recovery” economic recovery. Investors quickly began buying the dip. Despite the negative open, the S&P 500 closed up 0.1% and the Nasdaq closed down only 0.5%
But not all assets participated in the afternoon rally…
Bitcoin, which reached new record highs yesterday above $58,000, fell as much as 23% from those highs, dipping to $45,000 intraday.
This is the second time in 2021 bitcoin has reached new highs only to enter into a bear market the following day.
A bear market is considered a decline greater than 20% off of recent highs.
In January, the cryptocurrency topped out near $42,000 but fell 28% to $30,000 the next day.
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