FT “Cryptocurrency market shock begins to spread to existing capital markets”


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The impact of the cryptocurrency (virtual currency) market such as bitcoin has begun to affect existing capital markets such as the New York Stock Exchange (NYSE), the Financial Times (FT) of the UK reported on the 22nd (local time).

Meanwhile, the capital market and the cryptocurrency market have been playing separately. However, as institutional investors enter the cryptocurrency market one after another, the sharp decline in the cryptocurrency market is affecting the existing capital market.

For example, on the 21st, when China’s Deputy Prime Minister Liu Heo announced that “we will strictly ban bitcoin trading as well as mining,” the cryptocurrency market collapsed at once.

Major cryptocurrencies showed a double-digit plunge, with bitcoin falling to the $33,000 level, which once plunged by 30%.

However, it was not only the cryptocurrency market that was shocked. The existing capital markets were also shocked.

When Bitcoin plummeted, the S&P 500 index futures, which Nasdaq and Tesla belonged to, plummeted, as well as oil prices plummeted. In contrast, the Japanese yen, which is evaluated as a safe asset, soared.

In particular, the Nasdaq showed a sharp decline ahead of the closing. The European bond market was also hit hard.

The market conditions of the cryptocurrency market have begun to affect the existing capital market as well.

This is because some technology companies such as Tesla are increasingly being exposed to the cryptocurrency market, such as buying bitcoins in large quantities (worth $1.5 billion).

In particular, in the recent US stock market, ants (individual investors) are more active than ever. They invest in cryptocurrencies as well as stocks. If ants invest in the cryptocurrency market and the money is tied up due to a sharp drop in price, the stock market will have no choice but to be a blow.

FT analyzed that the cryptocurrency market, which remained on the periphery, has grown to a level that cannot be ignored enough to affect the existing capital market.

Meanwhile, as ants’ cryptocurrency investment has increased in recent years, financial authorities around the world are tightening regulations on the cryptocurrency market to protect consumers. Accordingly, FT predicted that the case where the authorities’ cryptocurrency regulations affect not only the cryptocurrency market but the entire capital market will become more frequent in the future.


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