On Saturday, the cryptocurrency market underwent massive sales. So, in 1 day, long positions on bitcoin on crypto exchanges were liquidated in the amount of almost $ 2.1 billion. It seems that investors in digital currencies do not feel “at ease” against the background of a lack of understanding of the incidence of the new strain of “Omicron” and the Fed’s desire to begin curtailing incentives to extinguish the inflation that has ceased to be “temporary”, as Mr. Powell assured us for a long time.
It should not be discounted that Asian investors prevailing in the crypto market react very painfully to news about the risks of technical default of the developer China Evergrande Group (HK:3333).
Bitcoin sales led to a 20% drop in the exchange rate, and a number of other coins lost much more. This picture is developing not only in one of the youngest markets — cryptocurrency, but also in other assets where investors are laying risks above average.
A natural question arises, as from a physics course in high school: “If it has gone somewhere, it means it has arrived somewhere”?
Against the background of global uncertainty, government-backed debt securities and precious metals will again attract attention.
This morning, gold is steadily developing a movement around $ 1,780 per troy ounce, but bitcoin is declining by more than 2%. It seems that the market is clearly hinting that with any decline, investors will look for opportunities in more traditional “safe havens”.
And yet, is the crypt a safe haven or not?
I’m afraid it certainly won’t be able to protect against market shocks. From inflation? Well, creatively. Maybe sometimes…
From geopolitical problems? I think not at all.
So when some hotheads tell me that investing in crypto today is the most reasonable idea and the most secure investment… I just want to smile.
The crypt has shown itself superbly in the past – this is a fact. Will it continue like this? Alas, at this point you can only put a big question mark…