“I will be delaying the U.S. increase in tariffs now scheduled for March 1,” said the US President Trump and the global markets’ soared.
The trade tariffs that were to get into effect by the end of this week has now given the investors a relief while assuring them that both the countries are moving towards a positive agreement.
Yesterday, China 50 index had a jaw-dropping spike of more than 6 percent.
“The high frequency engagement between Beijing and Washington at a senior level implies that both sides are looking for some form of settlement,” said Tai Hui, the chief market strategist of Asia Pacific at JP Morgan Asset Management.
Currently, there are no countdown timers hanging over the market’s head as not only US-China trade tariffs have been postponed, Brexit which has been scheduled for March 29th is expected to push forward as well.
While the stock market is thriving, the crypto market took a hit on the weekend registering huge losses, wiping out the gains made during that week. Bitcoin is currently trading at $3,785 that eToro senior analysts, Mati Greenspan in its daily market update shares, BTC:
“is new and because it’s price discovery is going through a period of discovery, cycles may vary from a few months to more than a year. For now, we’re at the tail end of bitcoin’s longest ever bear run.”
“The stock market has responded very quickly to the Fed’s shift in policy and has already recouped almost all of its Q4 losses. Bitcoin has not done so just yet.”
As for the crypto plunge, there is no surety to what has caused this downturn but Greenspan shares this could be due to some crypto traders piling on a little too much leverage and the “market pushed back by taking them out.”
The crash could also be the result of a large seller as the trading volume registered huge increase going well above $10 billion on the weekend.
But this plunge means, despite the fact that the market is maturing, these bouts of volatility means, the market is still extremely volatile and hence risky. And the pullback was lead by altcoins especially Ethereum that means the market remains correlated.
“The level of the pullback is actually quite encouraging. In fact, most of Sunday’s 9% plunge was actually just erasing some of Saturday’s gains.”
After January’s no show, February has still managed to go green and rise in value, now as the month is coming to an end, we would get to see if market sees more greens, trade sideways or get dumped.