Stock Market: The Ghosts Of The 2000 Crash Haunt Wall Street
In the aisles of Wall Street, the atmosphere is no longer festive. For a few weeks now, the American stock market has been showing symptoms of a relapse that we thought forgotten. The specter of a crash — in the style of 2000 or 2008 — resurfaces. And while analysts pull out their old survival manuals, others see it as an opportunity for a big cleanup. But what does history really tell us? And above all, how do we read the signs in this changing economic jungle?
Indeed, the American stock market loves to trip over the carpet of overvaluation. In 2000, the Nasdaq (now aligned with Bitcoin ) reached 5,000 points, before crashing down on a 78% drop. A quarter of a century later, are we seeing a repeat? In any case, it looks like it .
The Nasdaq is already down 13% in a month, like a foretaste of an indigestible dish.
Back then, we invested in companies whose only tangible asset was a PowerPoint. Today, it’s artificial intelligences that are sparking euphoria, in the form of Nvidia and its tech cousins. History repeats itself, but with more printed circuits.
As Jim Osman says: ” You haven’t seen anything yet “. He speaks from experience: the Nasdaq, the S&P 500, and the Dow Jones all crashed back then. And this time? Nothing guarantees that the scenario will be less violent.
And you, are you ready for a HD rerun of the 2000 crash?
On the other side of the Atlantic, the United States moves like somnambulists on a thread of debt and illusions. The American economy, on paper, seems robust, but the foundations are cracking. Proof? The famous S&P 500 has slipped over 10% recently, flirting with correction like a shy teenager with disaster.
The profit margins of American companies have reached unprecedented levels: over 9%, far above the historical norm (between 3.8% and 7.2%). It’s no longer an economy, it’s a trampoline. And beware of the landing!
A simple “reversion to the mean” — returning to the average, as professionals say — could plunge profits by 20%, or even more.
Robert Kiyosaki doesn’t mince his words :
This crash will be bigger than that of 1929.
Just that. But don’t panic! According to him, you should “stay stoic, keep your eyes open… and buy when everyone is fleeing “.
Should we tremble or break out the checkbook?
As investors try to keep a cool head, one question remains: are we witnessing the bursting of a new bubble or a healthy correction? The indicators are as reassuring as a lace parachute. Some talk about “bull traps”, those false recoveries that precede the real fall.
Remember: in 2001, after the dot-com boom, the market had recovered 21%… before losing 32% again. A repeat in 2008. And today? The valuations are once again under tension. The forward P/E (price-to-earnings ratio) is dangerously approaching 23x, a level that preceded the last two major corrections.
And yet, not all is lost. Artificial intelligence is not just a flash in the pan, as some analysts remind us. The problem is not the technology, but the exuberance of investors, that old demon of Wall Street.
So, is this stock market self-destructing out of enthusiasm?
In summary, the misfortunes of some bring happiness to others: while the American stock market ecosystem, symbolized by Wall Street, is in a dark place right now, it should be noted that it’s Europe that is cashing in .
Stock Exchange: Wall Street In Turmoil, Europe Takes The Prize
Trump aiding, the European stock market is doing well, while Wall Street is taking hit after hit. Investors are shunning American stocks, scared off by economic policies considered risky. Meanwhile, capital is flowing to Europe, benefiting from a new momentum. With European funds in full ascent, should decision-makers across the Atlantic be worried? All the more so as the trend seems to be accelerating, reinforced by unexpected strategic decisions.
The European markets are experiencing an unprecedented influx of capital, with investors seeking refuge amid American uncertainty. In just one month, European equity funds recorded their largest capital inflows in ten years .
In parallel, the European Central Bank suggests that it may increase its investments in defense and infrastructure, an announcement that enhances the appeal of European markets.
According to data from Bank of America , over $6 billion has flowed into European funds over ten consecutive weeks, a record. Meanwhile, American active funds continue to see their assets shrink, with $1.2 billion exiting in one week. A rotation of capital reminiscent of the shift of 1999, when investors abandoned the United States in favor of Europe.
It is noteworthy that 39% of funds are now overweight in Europe, compared to only 12% last month. A radical change that raises the question: are we witnessing a new golden age of European finance?
Since Trump’s arrival, American markets have experienced recurring instability. According to Bank of America, capital outflows from American funds are reaching unprecedented heights. Indeed, as investors pull their money from US stocks, the latter underperform. The S&P 500 index itself shows signs of weakness compared to the European Stoxx 600.
A few remarkable figures:
Trust in the United States is continuously declining. The renowned investor Warren Buffett recently sold part of his stocks, an alarming signal for American markets.
Furthermore, Bank of America’s study reveals that 69% of fund managers believe that “the stock market exceptionalism” of the United States is coming to an end. Adding to this are the volatility of stock indices such as the Nasdaq and the Dow Jones, making the future seem very uncertain.
Will the Trump administration be able to regain the trust of investors before the situation becomes critical?
Ram Charan, financial analyst, nicely summarizes the situation:
” The stock market is dangerously declining, some speak of Trump turbulence, others of a slowing US economy. ”
If we believe the major banks, the downward trend is just beginning. How far will it go?
The economic malaise in the USA is not limited to traditional stocks. Crypto ETFs are also facing a wave of disaffection. Since January, investors have turned away from American spot Bitcoin ETFs, prompting a flight of $5.5 billion. Meanwhile, European active ETFs are seeing an influx of 33 billion euros, an increase of 16% in one month.
The European dynamic is such that asset management giants like BlackRock, JPMorgan, and Goldman Sachs are showing increasing interest in the European ETF market. These companies are looking to diversify their investment offerings on European exchanges, attracted by regulations considered more stable and favorable for financial innovations.
The enthusiasm is such that some experts, like Peter Oppenheimer of Goldman Sachs, estimate that European markets could surpass the United States in active ETFs in the years to come.
According to Global Markets Investor, ” capital in equities is massively leaving the United States to head towards Europe“. A statement that speaks volumes about the ongoing global economic turn. European UCITS funds have recorded record growth in a month, confirming this trend.
Moreover, BlackRock recently announced a strategic repositioning by removing the “ESG” label from 56 of its European ETFs, which could further enhance the influx of investors.
In the long term, could Europe become the hub of financial investments, particularly in the crypto sector?
One thing is certain: the correlation between Wall Street and Bitcoin has never been stronger. Recently, a brutal drop in the American stock market has awakened fears of a major economic crisis . Investors must therefore remain vigilant and carefully monitor market signals.

Coinedition
2025/03/20 01:05
Ripple CTO David Schwartz Explains Why Bitcoin Lost Its Transactional Edge
Ripple CTO David Schwartz recently joined a conversation sparked by longtime Bitcoin advocate Bruce Fenton about why Bitcoin isn’t really used for day-to-day transactions anymore.
Fenton, CEO of Chainstone Lab, pointed out that about ten years ago, you could actually use BTC for regular purchases. He mentioned that back in 2015, over 130 restaurants in Portsmouth, NH, were accepting Bitcoin. Even at the Satoshi Roundtable , a major crypto conference, more than 70% of ticket sales were paid in Bitcoin back then. But now, those numbers are close to zero.
Fenton sees this decline as a failure. He argues that money must be used for transactions, not just held as an investment. “Using Bitcoin for purchases is a great way to grow the network,” he said.
Many believe Bitcoin’s high fees and slow transaction speeds have made it impractical for payments. Mandrik, a Bitcoin user, suggests that people now view it as a long-term asset. “They don’t want to look back in five years and regret spending $5,000 on a cheeseburger,” he said.
Ripple CTO David Schwartz argued that Bitcoin worked for payments when people didn’t consider it real money. He added that Bitcoin was mostly used for payments when the early adopters got it super cheap. Once its value went up, fewer people wanted to spend it.
“Once the supply of early miners who got Bitcoin nearly for free dried up, there was no longer any reason to pay with Bitcoin,” Schwartz said.
Meanwhile, Jack Mehof, an early Bitcoin supporter, echoes Schwartz’s perspective. He stated that while he once paid for beer, tacos, and coffee with BTC. But eventually, the rising costs and slow speeds made it too much of a hassle.
Schwartz also pointed out that there are many other cryptocurrencies out there with lower transaction costs and faster speeds. But, as he pointed out, “You don’t see much retail payment use of those either. At least not yet.“
Related: Donald Trump Makes History by Embracing Bitcoin Payments for Campaign
Some experts believe Bitcoin’s decline as a payment method is more about regulations than technical limitations. Wayne Vaughan argues that tax laws and banking restrictions have made Bitcoin payments difficult.
“The tax treatment of Bitcoin is a major barrier. Companies accepting Bitcoin faced significant accounting burdens, and banks have been incredibly hostile,” he said.
Dave Weisberger agrees , saying that capital gains taxes make spending Bitcoin too expensive. “Every purchase effectively costs 24% more due to capital gains taxes,” he explained.
Sam Jones added that a tax exemption for small Bitcoin transactions—similar to foreign currency rules—could encourage more spending.
Some blame the Lightning Network for failing to deliver on its promise of cheap and fast transactions. Meanwhile, some argue Bitcoin’s primary role has shifted to being a store of value, similar to gold.
Related: Veteran investor Breaks Down Bitcoin’s Bull Run: Miners, Investors, and What to Expect Next for the Price
Even with regulatory fixes, some question whether Bitcoin payments will ever compete with traditional methods. Anders, a financial advisor, believes fiat remains the more convenient option. “People aren’t going to use Bitcoin if it creates a worse payment experience,” he said.
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