Stock News: Cryptocurrency Movement

January 3, 2021, 8:51 pm EST

Cryptocurrency Movement

Bitcoin skyrocketed from 10K in September to 33K as of today that is more than 200% gains in a few months. Although we do not trade and analyze bitcoin or other cryptocurrencies in detail, it is useful to use this phenomenon to get some ideas about stock market conditions. 

  • Falling US dollar gave pressure on all other asset classes. Basic materials like steel, aluminum, copper, and coal were also rising significantly in the last few months in 2021. It illustrated institutional investors already sensed the need for substitutions of dollar-based assets after a series of stimulus and money-printing policies. 
  • If this trend continues, it is possible that cryptocurrency gradually becomes a tradable asset like other currencies. Currently, there are still many people doubt whether Bitcoin is a reliable source of a asset class. 
  • This unusual activities also reveals a special moment for the global markets both in uncertainty of the US presidential elections and geo-political activities in Europe and Asia. 

Thus, we shall be prepared and getting ready for a much more volatile year in 2021.

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