The global stock market this week has seen the biggest drop in history due to the high fear of corona virus. Cryptocurrencies, gold and silver also did not escape this short-term downtrend. So where did the money go?
Cryptocurrency market lost 40 billion USD
Since the beginning of this week, $ 40 billion has evaporated from the cryptocurrency market, equivalent to a drop of about 14%. The move is not surprising because the crypto market is always volatile.
Since the beginning of this year, crypto market capitalization has increased by 62% to surpass the $ 300 billion mark, so this could be an overdue correction.
Bitcoin has been leading the decline as the price of the king's coin broke below some key support levels as the week drew to a close. BTC touched a 4-week low of $ 8,430 yesterday before rebounding to the resistance of $ 8,700, so another correction is the probable outcome.
The stock market was also engulfed in flames this week, with Asian investors suffering the most. The global stock market has extended its worst weekly decline since October 2008.
Tom Lee, founder of Fundstrat Global Advisors, said that “this is not normal, and the market clearly shows us a change.”
Nothing is normal at the moment, the Dow Jones has dropped 3,600 points in just one week, silver fell 10% and even gold lost nearly 5%. Investors seem to be overreacting to the brink of a potential pandemic.
Where did the cash flow go?
Alex Saunders – CEO of Nuggets News, has been following the cash flow and noted that Bitcoin has followed the fall of stocks and until recently money has been flowing into gold.
Where's money going?
It's clear money's going into US10Y bonds (Blue).
Money was going into Gold until recently (Black).
Bitcoin (Orange) continues to be dragged down with stocks (Green) at this point.BUT, the stage is set for #Bitcoin to do it's own thing this weekend. $ BTC pic.twitter.com/pZzgh225lK
– Alex Saunders (@AlexSaundersAU) February 28, 2020
"Where did the money go?
It is clear that money is going into the US10Y bond (in blue).
Until recently, money was transferred to gold (Black) again.
Bitcoin (orange) continues to be pulled down along with the stock (green) at this time.
BUT, the stage is set for #Bitcoin to make its own move this weekend. "
According to Bloomberg, gold has dropped the most sharply in the year since 2013. Silver also did not escape the global sell-off situation as demand is mainly driven by the industry, which was hit hard by the chain. Supply is broken. Silver lost 10% for the week and, according to analysts:
“Silver seems to have suffered double the concern about industrial demand and lost its position on other safe-haven assets.”
Money appears to be going into the US 10-year bond, at least according to Saunders's chart. However, according to other reports, the 10-year US Treasury yield also hit a record low this week.
There seems to be no real safe haven in chaotic major economies, except for the hard currencies that central banks around the world are trying their best to devalue.
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According to Bitcoinist
Translated by ToiYeuBitcoin