Last week, it was one of the worst koersweken of all time for Wall Street, and all of the other stock markets around the world. The Dow Jones and the S&P 500 got to do with the best correction in the decades to come. Also, bitcoin had to suffer as well. Investor is Michael Novogratz sees a connection.
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A bad week for the markets
Almost all of the stock markets in the last ten days of February and a good spanking. Since the 19th of February, it lost to the S&P 500 is about 12%, and that’s the quickest fix in history.
The other major stock market indices such as the FTSE-100, NASDAQ-100, Nikkei 225, etc., show similar numbers. For the first futureprijzen make a day up. At the moment, approximately 1.82 percent of the time.
This is, of course, can not be viewed in isolation from the panic and the anxiety surrounding the spread of the corona virus, called the COVID-19. There’s plenty to be read about in the newspapers, and we won’t be able to go into that, except for the fact that it is a global problem that is starting to be used. There are lots of reports in Asia, the united states and Western Europe. In addition, Iran is also a lot of cases have been reported.
Bitcoin will follow a somewhat
A lot of drawn to a conclusion in cryptoland, it is that the bitcoin as a investeringsmiddel, are not correlated with traditional financial markets. According to former Wall Street hedgefondsbeheerder, and bitcoin bull, Mike Novogratz, this is not the case at all.
He thinks that the bitcoin value is going down, because a lot of investors make their leverage to have entered into what can be gained in the midst of a remarkable marktcrisis. Therefore, a lot of investors want to cash have to have in order to be able to enter it if the price is really low. Perhaps it is as well to explain as to why the price of gold last week fell.
How did $btc go from being a hedge against bad stuff, to getting washed out and trading like a risk asset? When things go from bad to very very bad, like they did last week, investors take leverage down as fast as they can. So book profits to make up for other losses. Ouch.
— Michael Novogratz (@novogratz) January 1, 2020
Bitcoin fell, indeed, within the same time period is strong. On 19 February, lost the BTC close to 1000 euro value. For a more detailed analysis of the last week, you can find it in our analysis of whether the bottom is now reached.