Why should we all be wary of the new gold that is shaking the world?
Bitcoin behavior could be a positive signal for markets this year
The world's leading digital asset, bitcoin, has suddenly lost as much as 15 percent of its value, falling to almost $ 28,000 today at one point, while alternative cryptocurrencies are growing, catching up with the leader. This could be briefly described as "easy come, easy go".
however, the fact that it has grown so much, some analysts assess as a sign of what could happen in 2021 on world markets.
Just a few weeks ago, Wall Street watched in awe as cryptocurrencies broke through the $ 20,000 mark. It jumped above $ 30,000 for the first time this weekend. The cryptocurrency is notoriously unstable and concerns remain that a decline could be imminent. What is here, we see, and it is happening slowly.
But, after closing in 2020 with profits of more than 300%, an increasing number of traders, those looking for a yield in a world with low interest rates, are giving Bitcoin an advantage.
This hunt for return and unbridled optimism about the future is not just driving the rise of bitcoin.
The flood of support from central banks and governments has given investors confidence to look to the economic boom expected after the Covid-19 recession. According to Deutsche Bank, 28 of the 38 non-cash funds it monitored made positive returns in the past 12 months.
Investors are bringing that same energy into 2021, despite the alarming outlook for the virus and the spread of a new strain. Therefore, the major trends that defined the end of 2020, when stocks reached record highs, are expected to remain in place.
The mood is clear when traders return to work after the holidays, stocks in Asia and Europe rise, and American futures stocks gain strength. The prices of gold, silver, oil and euros have also increased.
The main exception is still the US dollar, which is still under pressure.
source: (Telegraf Biznis)
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