US President Donald Trump has recently implemented trade tariffs, upset the balances in global markets. While high fluctuations were seen in traditional investment instruments, the crypto currency market came to the fore with remarkable stability. Following the latest statements, both individual and corporate investors began to tend to turn to alternative assets classes. In particular, sudden jumps in volatility brought new searches in portfolio management.
Hard fluctuation in traditional markets
According to TradingView data, the seven -day -year -old volatility of the S&P 500 index jumped from 50 %to 169 %after Trump announced new tariffs. In the same period, a similar fragility was observed in Nasdaq and Dow Jones indices. In the last two months, S&P 500 lost approximately 14 %, while investor confidence has been seriously damaged. In particular, the retreats in technology -weighted shares have deepened the panic atmosphere in the market.
Despite increasing volatility, a relatively limited decline in the crypto money market was observed. Although crypto currency volatility reached 83 %in the same process, this rate was more controlled than the increase in stock markets. This shows that investors are turning to more independent and mathematical foundations, especially during periods of increasing political risks in the markets.
The tendency to crypto currencies gained speed
According to James Butterfill, Coinshares Research President, the harsh fluctuation in stocks contrasts with the relative stability of the crypto money market. Butterfill said that investors will “show more interest to products with algorithmic structure, far from political fluctuations”. This comment explains why crypto currencies have been on the agenda more recently.
On the other hand, treasure bonds and US dollar, which were seen as traditional safe ports, could not provide the expected protection this time. Treasury returns increased by 62 basis points to 4.45 %compared to last week, while the dollar index fell to the lowest levels of the first quarter. Emercore Heat officials, “with the increase in return of the dollar, the depreciation of the economic trend shows that the economic trend is out of classical patterns,” he evaluated the process.
Portfolio strategies are changing in the new period
These new dynamics in the market led to the re -evaluation of investors’ portfolio structures. Uncertainty and increasing fluctuation increased the risk of one -way investments, while the need for strategic diversification has brought to the fore. Risk protection strategies gained more importance; Investors are trying to balance different classes of assets by acting data -oriented.
Unusual movements in economic indicators cause changes not only for short -term reactions, but also in long -term expectations. Capital movements towards alternative investment instruments can be a harbinger of a new era in the global financial system. In this new order, the crypto currency market stands out as a different field of trust with its decentralized structure.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
