https://www.forex-news.com/
Forex-News has been the world leading economy news website since 2005. It has been a joyful path full of changing variables in this changing world. During the last three years we have also covered some of the most important news regarding Bitcoin and other cryptocurrencies. Wherever the news are, we are there.
Bitcoin
$11,586.58
-234.28
Ethereum
$378.87
-17
Litecoin
$56.94
-2.64
DigitalCash
$95.66
-6.19
Monero
$92.45
-1.36
Nxt
$0.01
0
Ethereum Classic
$6.84
-0.37
Dogecoin
$0.00
0

Surprising result: Gold & Bitcoin – the outperformers in the first half of 2020 | message

4


Shares can largely make up for corona losses
Uncertainty drives gold price strongly in the first half of the year
Bitcoin as an outperformer

After the leading German index DAX and the most important US indices climbed to new all-time highs in February, a stock crash of historic proportions followed. The longest bull market in history came to an abrupt end. This was due to the fact that the corona virus spread to Asia in Europe and the USA. As a result, the DAX on March 12 and the US leading index Dow Jones on March 16 had to give more points than ever before in just one day.

Do you want to invest in cryptocurrencies? Our guides explain how to do it within 15 minutes:

Buy Bitcoin, Buy Ripple, Buy IOTA, Buy Litecoin, Buy Ethereum, Buy Monero.

But after several days of high losses, investors dared to take cover again. On the one hand, the restrictions imposed by numerous governments on public and economic life, which were intended to prevent the disease from spreading further, have now been relaxed. Second, many governments have adopted unprecedented aid packages to alleviate the economic impact. They received support from the international central banks, which opened their money gates wide.

surprising balance

It so happens that at the end of the first half of the year, many indices largely recovered their strong corona losses, or even showed a plus in the case of the NASDAQ 100.

The US leading Dow index was still almost 10 percent below its level at the end of 2019, but it has nevertheless clearly recovered from its 52-week low. The trend was similar for the DAX, which ended the first half of the year with a loss of around 7 percent. In the S&P 500, which represents the broad US stock market, the minus was only 4 percent.

Technology stocks performed better. This has to do with the fact that investors assume that through social distancing the digitalization should still be accelerated – for example through the increased use of the home office or online trading. As a result, the TecDAX was just 2 percent below its level at the end of the first half of the year, while the NASDAQ 100 even increased by over 16 percent in the first six months of 2020.

Gold, the safe haven

Oil prices were one of the strongest losers in the first half of 2020. Both the US variety WTI and the North Sea variety Brent sold well over 30 percent. The corona crisis has led to a sharp drop in oil demand and it is not yet possible to predict when it will fully recover.

On the other hand, investors’ desire for security has driven the gold price enormously. The yellow precious metal has always been considered a “safe haven” in times of crisis and was able to benefit from this reputation even during the Corona crisis. The gold price rose by over 17 percent in the first half of the year.

Bitcoin stands out

Only the Bitcoin developed better. The world’s most popular cryptocurrency is hailed by its fans as a good alternative to gold and climbed over 27 percent over the same period.

The international central banks, which are generally very skeptical about cyber currencies, have contributed to this. Because in order to dampen the economic impact of the Corona crisis, currencies around the world have decided to cut interest rates, billions in bond purchase programs and other instruments to support the economy. But this enormously relaxed Monetary policy also poses risks to inflation and government debt. Bitcoin is therefore becoming more attractive for investors whose confidence in the state’s financial system has been shaken.

You might also be interested in: NOW NEW – Trade Bitcoin & Co. via the Forex-news.com.net app – or for professionals via the Stuttgart Digital Exchange

Bitcoin was designed as a decentralized, state-independent and non-inflationary means of payment. In order to prevent an inflation-related loss in value, Bitcoin inventor Satoshi Nakamoto had already determined when programming the digital currency that the number of circulating bitcoins would grow at a slower rate (halving) until the specified upper limit of 21 million coins was reached.

Uncertainty remains

The markets are likely to be characterized by uncertainty in the coming months as there is no corona vaccine yet. It cannot be ruled out that there will be a second wave of infections, with uncertain effects on the economy.

Editorial office Forex-news.com.net

More gold price news

Image sources: Andrew Angelov / Shutterstock.com



Get real time updates directly on you device, subscribe now.

Leave A Reply

Your email address will not be published.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More