The stock market is disrupted, the gold prices tanks, the encryption tracking: investors control fear
Global financial markets are witnessing a panic sale that has not seen from the height of the Covid-19 crisis in March 2020. From the collapse of future contracts to the collapse of oil to gold prices, each of the main assets are flashing warning signals. Currently, the cryptocurrency market follows the trend in the US stock market. All eyes are in the encryption market. The big question is: Does investors support to overcome uncertainty in the market?
Futures in stocks are disrupted 15 % in only three days
Since the beginning of April 3, the S&P 500 has decreased by approximately 7.62 %, and NASDAQ has decreased by 7.30 %. A recent report revealed that the stock futures decreased at least 15 % in just three days.
In general, when the market is heading towards dangerous economic depression, the main indicators show serious negative signals. Is the global market at a serious threat?
Oil prices slide less than $ 60: The collapse of the large demand?
To better understand the scenario, it is important to analyze other major indicators. Let’s start analyzing the scenario of cruise oil.
At the beginning of this month, the price of crude oil in WTI was about $ 71.35. Since then, the market has decreased by more than 16.62 %. Currently, the price of crude oil in WTI remains at $ 59.49 – slightly less than $ 60. Between April 3 and April 4, the market decreased by more than 11.27 %.
Low oil prices is the early sign of a shrink economy.
Gold price tank where investors flee to cash
Gold is generally considered safe. During economic uncertainty, investors flow to gold in order to protect their assets from the impact of the potential decline in the market.
Between 3 and 4 April, the gold market decreased by more than 3.17 %. This means that investors are not sure of gold ability to overcome the current global economic crisis. As of now, the price of gold is 3,030.505 dollars.
The bond market indicates an economic freezing
At the beginning of this month, the price of the US Treasury bonds in the United States was $ 118.59. Since the market increased by about 1.68 %. Currently, the price is 120.59 %. This usually happens when people search for safe havens and believe that the economy faces a serious problem.
Artificial intelligence enlargement cools: “Mangificent 7” shares decrease by 35 %
A recent report revealed that the wonderful index 7 – an indicator that represents the performance of major technology companies such as Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla – decreased by 35 %. This also indicates that investors come out of the risky sectors.
And the investor feeling hit Rock at the bottom
The CNN Fear and Greed Index, which looks at seven major indicators – S & Parket Momntum, NYSE Stock Prongnt, NYSE’s widening prices, mode and call options, S&P market fluctuations, and safe demand in the United States – indicates that investors are very afraid.
Reports indicate that the invested fear is now at the same level of March 2020, when Covid’s locks began.
How will this affect the encrypted currency market?
The current wave of panic in the market can leak to the encryption industry. In the past 24 hours, the cryptocurrency market has decreased by 11.2 %. Bitcoin decreased by 8.6 %, ETHEREUM by 17.2 %, XRP by 16.2 %, BNB by 8.7 %, Solana by 16.4 %, and Dogecoin by 16.9 %.
However, if confidence in the central systems persists in corrosion, Crypto may also gain an interest as an alternative store.
The coming days will reveal whether the encryption is a safe haven-or is closed in the global sales process.
