Summer 2024 is taking its toll savers e Investors, having a volatility never seen before markets financial. In this climate of uncertainty, many are abandoning risky assets to take refuge in safer assets such asgold and US government bonds e German. Among the victims of this escape from risk are the cryptocurrency, with the Bitcoin in sharp decline and the entire digital currency sector in pain.
Il cryptocurrency sell-off it came after a heavy fall in global stock markets. On Monday 5 August, the Tokyo stock market lost over 12%, dragging all European stock markets deep into the red, following the significant decline on Wall Street last Friday. This sequence of events generated a real financial massacre, one market correction which many feared, but which came at an unexpected time.
Markets in deep red: here's why
The stock market, which had seen an intense run, especially in technology stocks driven by enthusiasm for artificial intelligence, now faces a deep correction. The high valuations of technology stocks have raised concerns about a possible speculative bubble, intensifying the climate of uncertainty. Investors are now waiting to understand if this phase represents one simple summer fix, a physiological decline typical of August, or if it will turn into a real one collapse.
To further complicate the situation, the economic weakness negli United States fueled fears of a recession, while tensions in Middle East, such as the threat of an Iranian attack on Israel, have exacerbated instability in the markets. With the global economic slowdown and signs of a prolonged correction, investors are looking for safer havens. In this context of growing uncertainty, portfolio protection has become a top priority.
Gold and bonds: the safe haven assets par excellence
In times of economic crisis and high volatility, investors seek protection in reliable safe haven assets. Gold and American and German government bonds are the preferred choices.
THEgold, despite recent fluctuations, shows a moderate increase of 0,81%, settling at $2.490,20 per ounce. Silver and copper are also growing, while platinum fell by 1,18% to 956 dollars an ounce. This increase is supported by both individual investors and central banks, who seek to diversify their reserves.
Government bonds, in particular i US Treasuries and German Bunds, they are in great demand. The U.S. 3,75-year Treasury yield fell to its lowest level in a year at 1,22%, a decline of 10%, signaling increased demand for these safe securities. 154-year German Bunds also saw yields fall, with the spread between BTp and Bund increasing to 150 basis points from 2,10 points on Friday. The yield of the Bund is at 3,64%, while that of the BTp has remained almost unchanged at XNUMX%.
The collapse of cryptocurrencies: Bitcoin and Ethereum in a panic
While gold and bonds prosper, the securities market cryptocurrency is experiencing a dramatic collapse. In just 24 hours, the Bitcoin suffered a loss of more than 10%, falling under $50. This drop represents the worst week for Bitcoin since the FTX collapse. Other cryptocurrencies are also suffering. L'Ethereum saw a 20% decline, falling to $2.117, while the Litecoin fell by 14,51%, below $50, and Solana by 16%. Overall, more than 18% of the total crypto market capitalization has been wiped out in the last 24, according to Coinmarketcap, with a loss of over 300 billion of dollars in the last three days.
This latest cryptocurrency crash could have broader repercussions, as the SEC recently approved new ETF funds for Bitcoin and Ethereum. These ETFs have attracted hundreds of millions of dollars to cryptocurrencies. Additionally, Morgan Stanley announced that it will soon allow its financial advisors to offer Bitcoin ETFs to clients, marking an important milestone news for Wall Street.
