S&P 500 more PABAGU -new than Bitcoin because US assets have lost favor of investors
For many years, Wall Street criticized Bitcoin (BTC) for its volatility, but the situation has not changed as President Donald Trump’s aggressive trade policies have diminished the appeal of US ownership.
From more on The announcement of Trump’s release day On April 2, the seven days of the S&P 500’s volatility, Wall Street’s benchmark equity index, rose from an annual 50% to 169%, according to data from tradingview. That was the highest level since the coronavirus crash in 2020.
The seven days realized by the BTC has doubled at 83%, but it remains lower than the S&P 500, indicating the possible evolution of cryptocurrency as a low-beta hedge against stocks. Cryptocurrency looks significantly less volatile than the S&P 500 on a 30-day basis.
“Equity (MAY) markets have experienced a dramatic spike in volatility – which sprouts in Bitcoin, currently seeing a collapse in volatility. It raises the question: Should investors put their trust in assets that are highly susceptible to political and human mistakes, or in a mathematical framework.
Investors dump us possessions
The S&P 500 cracked 14% less than two months, mainly because of the fears of the trade war that recently came true. The tech-heavy Nasdaq and Dow Jones Industrial average have experienced similar losses at the same time increasing volatility in global equity markets.
The risk of avoiding such magnitudes is that there is a history of seeing investors parked money on Treasury notes, which supported the global financial system, and the US dollar, the global currency reserves.
But since last Friday, investors have been aggressively throwing notes in Treasury, the driving is higher, and the dollar index has been able to be able to. The so-called 10-year-old bond benchmark has climbed 62 basis for 4.45% since last Friday and the dollar index, which monitors the value of the greenback against major currencies, has expanded the first quarter swoon to 100, the lowest level since late in September.
Money usually appreciates when their national bond increases unless markets are concerned about the country’s debt situation, where investors are taking money to bond markets, leading to a spike in produce and a coincidental losses. The Witnessed by the Global South This is in 2018.
“Bruises higher, lower currency is common in EM. We saw it in the UK during truss debacle. But it was quite not normal for the US: there were four other stages in the last 30 years in which the dollar reduced more than 1.5% with a 30-year yield up to 10BP,” Evercore Isi said, According to The Economic Economic Economic of Wall Street Journal Nick Timaros.
“It reflects the evaporation of the US extraordinary growth and the reduced margin of the dollar assets for reserve purposes amid the US wrong decision,” Evercore added.
