Has the crypto assets started to collapse? This is the most curious question these days… Because Bitcoin, one of the pioneers, has lost 60% of its value in the last 6 months. After the inflation data in the US was above expectations, losses in crypto assets deepened. Bitcoin saw a 17-month low.
There is an escape in risky assets as if fleeing from the tsunami. May is usually a month in which the “sell, go” trend prevails. Movements are seen in narrow and horizontal bands called “saws” in the stock markets. The losses of investors who drift from place to place increase. The movements in this month, referred to as “Mayday”, are the emergency word used as a distress signal in radio communication.
WHAT ARE RISKY ASSETS?
Risky asset class; it is expressed for assets with price volatility. Assets with significant price volatility, such as stocks, commodities, high-yield bonds, real estate and forex, are called risky.
Grants distributed during the pandemic, cheap loans; chose risky assets as the address. Record after record was seen on exchanges, while targets were ultra-raised in crypto assets such as Bitcoin. Conclusion; of course it’s not over yet… In fact, it can be said that the adventure of crypto money in the global arena is just beginning.
TWO QUESTIONS TWO ANSWERS
Will there be a dot.com crisis in crypto assets?
There are currently 19,419 cryptocurrencies in the world. 526 is traded on the stock exchange. The market value is at the level of 1 trillion 213 billion 976 million 638 thousand 329 dollars and this figure changes every moment. There has not been a crisis like dot.com in this market yet. However, in the crypto market that has not had a childhood illness, there is always such a risk, the possibility of a bubble burst.
Does money park in safe havens?
There are trillions of dollars in the world looking for a channel to flow. The battle for where to park has taught us that; “Risk appetite could spell the end of the global economy. From a high profit focus, a reasonable but continuous earning approach should be passed. This stimulates the interest in gold, commodities and real estate.
