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Sunday, June 23, 2024

Bitcoin is more stable than the DAX in the crisis

The Ukraine crisis is overshadowing current events on the financial market. The DAX collapsed by up to 3.5 percent at the start of the week. Investors are increasingly fleeing to gold and safe government bonds. Interestingly, Bitcoin is relatively stable with a current minus of only 0.7 percent. Every single DAX title is thus more in the red than the key cryptocurrency Bitcoin.

  • Bitcoin and altcoins in particular react more strongly to market uncertainties than the traditional financial sector. The higher volatility today, however, lies with the large stocks, such as those found in the DAX . DAX titles such as Deutsche Bank, Continental or Delivery Hero are currently over 4 percent in the red. Accordingly, the small Bitcoin minus (0.7 percent) can be seen as a strength.
  • However, the current Bitcoin strength can also be over very quickly. Should there be a further escalation in the Ukraine crisis this week, a significant red sign on the crypto market can be expected. After all, investors withdraw their capital from risky investments, such as BTC, in phases of great uncertainty.
  • Meanwhile, the past Superbowl in the USA could have been positive for the Bitcoin course . Up to 800 million people around the world watched the sports spectacle yesterday, Sunday. Especially crypto companies like Coinbase , Crypto.com or FTX have advertised aggressively there. Among other things, this could have contributed to the support of the Bitcoin course – more about this later here at BTC-ECHO.
  • Investors and traders should be aware of the currently very high volatility and react accordingly cautiously. This could mean, among other things, reducing leveraged positions.
  • In any case, from a fundamental point of view, BTC is stronger than ever: The Bitcoin on-chain data paints a more positive picture than it has in a long time.

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