HomeCryptoIs Bitcoin Favored by the Market Drop?

Is Bitcoin Favored by the Market Drop?

-

Bitcoin’s recent market drop is alarming for investors. Before, it was seen as a safe haven and was immune from fluctuations in risk assets such as high-yield bonds, stocks and commodities. However, the market has shifted in recent months, with the S&P 500 down over 17 percent since its start in June 2022. The drop is a result of market volatility in risk assets such as stocks, inflation and the Fed’s monetary policy, all of which affect the value of these risky assets.

Investors are pulling out of risky assets, and the crypto market is no exception. A recent hike by the Federal Reserve is likely to be only the first of many jumps in the near future. Some investors are worried that a “soft landing” – a shift to slower growth – isn’t possible. Likewise, geopolitical risks and uncertainty are also complicating the situation. Despite the market’s current slump, some investors are still holding cryptos, hoping to make significant returns. While high potential returns come with high risks, the current market environment is not conducive to such a move.

However, the recent drop in global equities suggests that bitcoin could see a downtrend if stocks fall below certain key levels. In June, Bitcoin hit $14,000 before dropping to $7,500 three months later, a 46% drop. The resulting fall has created a market that has been largely driven by retail investors. In that sense, bitcoin is becoming a more “safe haven” than equities.

Read Must: Is Bitcoin Used For Money Laundering?

Moreover, the price of Bitcoin has become more accessible, and it’s more secure to buy through a secured exchange. As a result, investors expect the speculative craze to continue. They hope to sell for more than they paid. And in the long run, Bitcoin should continue to rise, which would mean a huge boom for the cryptocurrency market. It will be interesting to see whether this trend continues!

Previous articleIs Bitcoin Really Dead?
Next articleIQ Option Review

LATEST POSTS

An Introduction to Bitcoins

The first step in getting started with bitcoins is to learn about the technology that allows this new currency to function. This book will cover...

Beneffx com review take advantage of crypto trading

CRYPTO INDICES In the current market environment, when businesses realize the importance of digital transformation, they turn to new technologies to bring their business-critical applications into...

How to Send and Receive Money With Bitcoin

You may be wondering how to send and receive money with Bitcoin. Fortunately, there are many simple steps you can take to make the process...

How to Trade Bitcoins at the Bitcoin Exchange

There are two ways to trade bitcoin on an exchange. Market makers and market takers are the two different groups that place buy and sell...

Follow us

0FansLike
3,433FollowersFollow
0SubscribersSubscribe

Most Popular

spot_img