The central bank warned investors that the high correlation between global crypto and stock markets is evident.
Amid fears of recession and rising inflation, the cryptocurrency industry witnessed the entry of many new participants who bought digital assets to diversify portfolios. But the latest declines are hitting them hard as the space continues to move in lockstep with stocks and bonds.The European Central Bank has argued for the use of portfolio diversification in light of crypto declines’ tendency to echo other riskier assets.
In recent years, the crypto industry has become part of the mainstream financial system. However, many experts have argued that it may not be serving its original purpose as an uncorrelated asset if it moves in tandem with its traditional counterpart during periods of uncertainty.It is also important to note that many traditional investors have added crypto to their portfolios. With stock and bond investments suffering in the widespread market rout, some players have cashed out.
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
EUR/USD Forex Signal: More Upside as Pressure on ECB MountsThe EUR/USD pair moved sideways ahead of key economic events scheduled for this week.
Baca lebih lajut »
ECB Lagarde signals that July is likely liftoffBloomberg reported that European Central Bank President Christine Lagarde said the first increase in interest rates in more than a decade may come in
Baca lebih lajut »
ECB Warns That Crypto Risks Could Spill Over Into Wider Economy.ecb warns in a new report that crypto risks could spill over into the wider economy as traditional financial institutions become more involved in digital assets. camomileshumba reports.
Baca lebih lajut »
EUR/USD Soars as Lagarde Talks Up Hikes, Says ECB Will Exit Negative Rates in Q3EUR/USD soared at week’s start, rising about 1.1% to 1.0670 on improved market sentiment, broad-based U.S. dollar weakness, but more importantly, hawkish comments from the ECB’s Christine Lagarde.
Baca lebih lajut »
Hawkish ECB members annoyed at President Lagarde's rate hike plan, as it rules out 50 bps hike - BBGSome of the more hawkish European Central Bank policymakers are annoyed at the rate-hike timeline outlined by central bank President Christine Lagarde
Baca lebih lajut »