The crypto community continues to be optimistic that despite the recent incident, prices will rebound. One of the people who are optimistic about the cryptocurrency market is Cardano CEO Charles Hoskinson. In the past week, markets around the world have collapsed. Gold seems resilient and a safe haven for investors also collapsed. Recent events have prompted the Fed Chairman to issue a reassuring statement to investors about the strength of the economy.
CEO Cardano: Crypto is the best barrier
Although it hasn't happened in the past week, cryptos have historically become the best hedge to traditional markets. Its lack of correlation with stocks, in particular, has been assured that cryptocurrencies are an essential thing in their price reduction process. This week has seen this trend change. When the traditional market plummets, the cryptocurrency market follows the same trend.
Buying Bitcoin https://t.co/2nItOqyxMP
– Mr.Hodl🌕🍿 (@MrHodl) February 28, 2020
Even so, Cardano CEO Charles Hoskinson still believes that crypto is the best barrier. He said that if SARS-CoV-2 (also known as the corona virus) became out of control, the only barrier from the market would fall and the stock would be crypto.
Dear markets, just an FYI, crypto is the best hedge in the world against a global pandemic. Should SARS-CoV-2 get big, the stock market is done and governments will collapse. Things that live in the digital world are resistant to this and will benefit from the social change
– Charles Hoskinson (@IOHK_Charles) February 28, 2020
His statement came just hours after Fed Chairman Powell made a statement about market losses.
$ 6B was written off this week
During the week, the stock market wiped out about $ 6 billion, marking one of the worst activity in recent times. This has continued to spark worries about a financial crisis in the coming months.
The Fed, currently being reminded of a rate cut and stimulating economy was met on Friday. President Powell noted that the Fed will use all tools at its disposal to ensure economic stability. This makes some analysts think of a sign of the upcoming rate cut.
Since the Fed claims the U.S. economy is strong, why would it need to take action to support it? Their statement was clearly aimed at the stock market, which is not strong but in dire need of support. Before it takes decisive action to prop it up, the Fed is trying to talk it up.
– Peter Schiff (@PeterSchiff) February 28, 2020
Although he has stated that the economy is looking good but adds that the ongoing corava virus is a major economic threat.
The community is keen to see if cryptos continue to rise or continue to plummet with traditional markets. In this scenario, the stock market can be backed by the government, the crypto market must move on its own, which means it can suffer great losses.
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