Wall Street mediocre investors fought bitcoin

nBankruptcy Commentary: The recent overall Wall Street stock market performance remained stable, not a big ups and downs. In contrast, the cryptocurrency market is volatile with up to double-digit gains in 24 hours. Some analysts said that in the short term, there will be no more major events in the U.S. stock market, which is further confirmed by the steady growth of the U.S. economy. As a result, this blandness in the stock market has propelled Wall Street investors to switch to higher-yielding cryptocurrencies.n
nTranslation: Clovern
Wall Street’s recent turmoil in the stock market has sent investors flocking to non-traditional assets such as bitcoin in search of higher returns and more or less stimulus.n
Deutsche Bank analysts said a significant increase in the correlation between bitcoin prices and the Wall Street “panic index” and Masao Muraki, global financial strategist on Friday, also pointed out that the correlation between bitcoin and the VIX index VIX, Cboe Volatility Index, Chicago Options Exchange Volatility Index.n
The Chicago Board Options Exchange Volatility Index (VIX) is commonly known as the Wall Street panic and is the most commonly reported barometer of expected short-term stock market volatility. VIX measures the future volatility of the market. The figure is now near the bottom line, that is, investors expect the stock market will not have too many events.n
The NYSE has gone through a nine-year bull market, the second-longest bullish record in recent financial history. The U.S. economy is also growing steadily. In the third quarter of 2017, the average annual GDP growth rate is about 3.2%. Although the average 20 times earnings of the U.S. stock market is a bit too far, the steadily developing U.S. economy also provides solid support for the valuation fundamentals.n
In the meantime, the policy of lowering interest rates proposed by the Federal Reserve in the new round of recession set off after the global financial crisis in 2008 has also been postponed. Since the interest rate cut to zero during the financial crisis, the Federal Reserve’s decision-making board has raised only five interest rates. The most recent rate hike was in December, adjusting the federal funds rate benchmark by 25 percentage points to 1.25 to 1.5.n
The continuing downturn in interest rates has led investors to move to higher-yielding stock markets, which have steadily risen due to “no spare tire.” But the falling VIX index now forces investors to focus on more advanced asset classes, such as cryptocurrencies. Deutsche Bank said the cryptocurrency market is the beneficiary of this series of moves.n

From December 2017 to the present (at the time of writing), VIX has been hitting a record low, signaling less and less volatility in the market. Cryptocurrency over the same period volatile currency market volatility, 24-hour ups and downs are double-digit.n
For example, on December 22, 2017, bitcoin prices plunged 22% from 91% in the previous month. According to coinmarketcap data, a cryptocurrency doubled in as little as 36 hours between January 17 and January 19.n

These swift and astonishing swings have become commonplace for cryptocurrency lovers, and now it’s appealing to Wall Street investors who have long been bored by the stock market’s blandness.n

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