A weekly section discussing how general events can influence the near-term future of cryptocurrency sector
On Thursday, the S&P 500 closed more than four standard deviations below its 50-day moving average for the third consecutive session. It is the second time this has happened in the history of the index; the first time was 75 years ago.
Last week, the Chinese central bank deployed a number of measures to tackle the ongoing stock market crash. These actions include: reducing interest rates, subsidize loans, and injecting a whopping 210 billion Yuan into the financial system through open market operations.
Venezuela is preparing to issue notes with higher denominations in response to the ongoing inflation. Currently, a 100-Bolivar bill is costing around 14 cents in the black market, which is making it impossible for people to purchase goods and services from. As a measure to tackle this issue, the government has plans to disperse 500 and 1,000 Bolivars notes by December 6th this year. In our opinion, it would be the right time for Venezuelans to anchor their funds into the cryptocurrency markets such as Bitcoin.
The Latin American currencies is reported to have been showing massive drops in their value, ones which could even surpass the aftermaths of 2008 financial crisis. Last week, the Mexican and Chile’s Peso, alongside the national currencies of Columbia, Argentina, Brazil have shown a massive drops in their values. It is time their people start hedging some of their near-term savings in cryptocurrency such as Bitcoin.