Plugavel.
  • Home
  • Tech
  • Car
  • More
    • Privacy policy
    • About us
    • Contact us
No Result
View All Result
Plugavel.
  • Home
  • Tech
  • Car
  • More
    • Privacy policy
    • About us
    • Contact us
No Result
View All Result
Plugavel.
No Result
View All Result
ADVERTISEMENT

Investing in cryptocurrency: an alternative to the financial markets?

17 de May de 2021
in Tech
Même en cas de crise, les investisseurs semblent continuer de faire confiance aux crytomonnaies. © Sorapop, Adobe Stock
ADVERTISEMENT

At the end of an unprecedented global crisis where the financial markets were strongly shaken, what was the impact of this crisis on cryptocurrencies and are they an alternative to the financial markets?

The first piece of advice given to any investor is to diversify their assets. You don’t put all your eggs in one basket! The objective is to have decorrelated assets so that not all follow the same curve.

Regardless of the type of investment, stocks, cryptocurrencies or safe havens such as gold, we can expect high volatility. Bitcoin, for example, rose very high before falling and then rose again but it is still very far from its absolute record. The objective of this article is not to compare the volatility of a particular type of asset or to analyze their level of risk, a loss of capital is in any case possible on both, but to look at how the financial markets and cryptocurrencies behaved during this time of crisis. We will also compare with the price of gold, the safe haven by definition.

The cryptocurrency: a new safe haven?

These three graphs tell us several things. The first is that during a global crisis, major stocks fall, whether they are correlated or not. We see a global fall on the day of March 12, 2020. As a reminder, it was on this same day that the world markets panicked, the main indices – including the Dow Jones Industrial Average, flagship American index – all plunging nearly 10%, a dark day for the entire world financial center.

What is more interesting is to see what happened after this fall and how the different prices reacted and if it was wise tobuy bitcoin at this time.

We can see that theor, a safe haven par excellence, rose sharply in the following days and quickly exceeded its initial pre-crisis value throughout the period of uncertainty, reaching its highest point on April 14.

The CAC40, for its part, after its sharp fall of nearly 30%, remained for a long time in a period of uncertainty before making a strong rise like all the European markets from May 18 and the joint announcement of the French President Emmanuel Macron and German Chancellor Angela Merkel.

As for Bitcoin, we can observe that from the beginning of May, it returned to its highest level like most of the major cryptocurrencies, with Ethereum even recording a greater increase than its competitors. This clearly shows us that investors, even in times of crisis, continue to trust cryptomonnaies as an investment support, or even a new safe haven!

What you must remember

  • This global health and financial crisis has therefore allowed us to see the behavior of cryptocurrencies in times of uncertainty and to see that they are increasingly becoming an alternative to financial markets for investors.
  • It should nevertheless be remembered that all these investment vehicles represent a risk of capital loss and that the best advice is diversification.

You will also be interested

Interested in what you just read?

ADVERTISEMENT
ShareTweetPin

Related Posts

Soldes d
Tech

Xbox sales: the Elite Series 2 reference controller is on sale on Cdiscount

Want to stay in control of your Xbox gaming sessions? The choice of your accessories will be decisive in your...

26 de June de 2022
How Online Poker is Using Artificial Intelligence
Tech

How Online Poker is Using Artificial Intelligence

The world of online casinos is evolving at an astounding rate. The market's current global value stands at around $61.5bn....

26 de June de 2022
Les IA pourront-elles dépasser les humains ? © ipopba, Adobe Stock
Tech

Westworld Season 4 Releases Today: When AIs Have A Conscience!

The saison 4 of Westworld is imminent: Dolores, Charlotte and Caleb may well surprise us. The revolution of robots will...

26 de June de 2022
Une fois plié, le Galaxy Z Flip3 Bespoke Edition mesure seulement 4,2 pouces. © Samsung
Tech

Samsung summer offers: take advantage of an immediate discount of €260 for the purchase of a Galaxy Z Flip3 Bespoke Edition!

The Samsung Galaxy Z Flip3 Bespoke Edition, the famous foldable smartphone from the South Korean manufacturer, is on sale during...

26 de June de 2022
Next Post
Pratiques, esthétiques et sans fil : Apple AirPods. © Apple

AirPods: how to use them with an Android smartphone?

Le ZenBook 13 Oled est très polyvalent et son écran Oled délivre une image exceptionnelle. Pourquoi s’en priver ? © Asus

Asus ZenBook 13 Oled UX325 with NumPad

Recommended

Moto GP Italy 2022: Di Giannantonio, pole position at home

Moto GP Italy 2022: Di Giannantonio, pole position at home

28 de May de 2022
Renault Kangoo price: arrival of the EDC auto box

Renault Kangoo price: arrival of the EDC auto box

28 de February de 2022
Photoshop training: take advantage of an 84% discount on Udemy

Photoshop training: take advantage of an 84% discount on Udemy

16 de June de 2022
Power Bi de Microsoft, un outil de data visualisation utile aux entreprises pour l'analyse de données. © Carlos Muza, Unsplash

How data visualization is democratizing and entering the Microsoft fleet

24 de April de 2021
ADVERTISEMENT

Categories

  • Car
  • Carros
  • Tech
  • Tecnologia
ADVERTISEMENT
  • Home
  • Privacy policy
  • About us
  • Contact us
© 2021 Plugavel - News about technology and cars on one site Plugavel.
No Result
View All Result
  • Home
  • Tech
  • Car
  • More
    • Privacy policy
    • About us
    • Contact us