Business News

Bitcoin turmoil enters the financial markets

The sharp decline and reappearance in cryptocurrency prices this week is rife with cultural groups, which could give a glimpse of what could happen in a major crisis.

Other government agencies found themselves at a price on Wednesday, when in the future the US S&P 500 equities were downgraded and oil returned after the price of bitcoin plummeted 30% on signs that China was planning to destroy digital signals. The Japanese yen – a currency that is often demanded in times of crisis – has also risen sharply.

A few hours later, bitcoin became more and more popular. But it was not uncommon for the loss to attract the attention of market participants.

“The impetus for this movement appears to have been a sudden turn of events,” wrote Richard McGuire and Lyn Graham-Taylor, accountants for Rabobank, in their official statement the following day. “We are here. Even successful companies such as Rabo Rates Daily have been forced to put cryptocurrensets forward and center. “

The pair wrote that “it seems difficult to realize how there could be a direct link between gyrations and the movements of economic groups around the world”.

In most cases, crypto prices are driven by anonymous items such as tweets from the likes of Elon Musk, for whom the automotive company Tesla bought the most. Price fluctuations in the average price are often as high as possible in the regulated and stable markets.

But that can quickly change.

On Friday afternoon, cryptocurrencies fell again after Chinese Deputy Prime Minister Liu reiterated Beijing’s determination to ban cryptocurrency mining and trade.

The article dropped 12% on the price of bitcoin, 20% from ethereum and 18% from dogecoin. The stock seems to be pouring into the US stock market, as the richest Nasdaq entered the last hour of trading.

At Barclays, credit analyst Soren Willemann also said the collapse of bitcoin has undermined the relationship between European companies. What it means literally is hard to dream of, but to the extent that the crypto industry is linked to the weakness of modern corporate segments (not using Tesla bitcoin), it is important in European history, as it is difficult for our markets to ignore [S&P 500] weakness, ”he said. That said, we will be the buyers of every piece made of crypto. “

With global regulators still around the cryptocurrencies market, particularly in an effort to boost consumer security, the question of whether the value of big markets has become more acute among investors.

Another hypothesis is that if stock prices were unreasonable, this could be very detrimental to the domestic economy of the stock market, leaving the issue of whether the active buyer can continue to strengthen the stock market.

In addition, some financial institutions and family offices have invested heavily in finance, which creates a lot of interest in financial banks who want to better manage their finances. On the plus side, it is easy to get caught up in the hustle and bustle of cryptocurrencies.

The irony is that the increase in crypto trading has been accompanied by a drop in volume on the stock market platform that is popular with traders every day. A large and volatile collapse could be the catalyst for a rise in risky positions in the stock market if those who sell the stock return to the stock market.

Source link

Related Articles

Leave a Reply

Back to top button