The crisis of US and European banks caused investors to turn to cryptocurrencies as one of the safe havens, which boosted the gains of the cryptocurrency market, as the market value of the largest cryptocurrency, bitcoin, exceeded $27,000 over the weekend.
The wave of violent losses that rocked global stock markets and stock exchanges pushed investors to assets and “safe havens”.
But the strange thing is, investors turned to the cryptocurrency market, considering it a “safe haven”.
“secure” bitcoin
- The popular digital currency, bitcoin, had the lion’s share of the profits.
- The largest cryptocurrency by market capitalization exceeded $27,000 over the weekend.
- Over the year, bitcoin has gained more than 60 percent, making it one of the best performing asset classes of the year.
- Not only the failure of banks gave impetus to the market for those currencies, but the US Federal Reserve also stopped raising interest rates.
Although the shock caused by the collapse of the “Silicon Valley” bank entered “crypto” in the belt of safe havens, there are still investors who look at “Bitcoin” as a risky asset, so that the most prominent question remains, which havens or assets are the safest in times of crisis. ?
The illusion of bitcoin
Financial and economic expert Ali Hammoudi did not share the global “enthusiasm” about bitcoin, and told Sky News Arabia: “Gold remains the most common safe haven for the general public, but we always advise not to put eggs in one basket, in order to protect ourselves from volatile economic conditions.”
He added, “Fixed assets, such as real estate, are also considered a good option, but unfortunately many are drawn towards investing in bitcoin or digital currencies, as they are worth 27 thousand now, but some also consider them low, compared to when their value was equal to 60 thousand dollars.”
The financial expert concluded: “Bitcoin I classify as any other risky commodity, and considering it an alternative to the dollar is premature.”