Bitcoin crossed 30,000 USD

As I always say, no asset class is bad but our expectations are.. It is okay if you are not interested in investing in crypto currencies but never show your hatred to the outside world & say crypto is scam.

Currently equity markets are struggling a bit with some uncertainities and moreover people are waiting for the elections in Indian and US markets. Politics and market are always related in some or the other way because it is because of the policies, margins of the companies can widen or shrink.

Stable government will always push the market higher. As of now, on one hand, rising interest rates are making lives of people more harder. Inflation is also shooting up inspite of aggresive hikes by FED, this proves that how much quantitave easing has been done in the Covid times. I still remember people giving names like helicopter money which directly deposited into bank accounts of citizens.

Possible reasons behind the bitcoin rally:

• Value of currency is depreciating in the US and it created ripple effects everywhere around the world, so people are moving to Gold and Bitcoin type of asset classes
• According to the earning forecasts and uncertanity, valuations in the US & Indian equity markets looks bit high for investors. Risk adjusted returns may not favour them.
• Investors are hitting pause button in equities because of the elections game about to happen
• Many economists and analysts are believing that inflation is here to stay for longer period of time. So, people are moving thier cash piles to safe heavens like Gold or some inflation hedges like bitcoin.
• Bull market will climb the wall of worries, time correction & price correction has happened in the crypto market already, so witnessing some run up which might trigger new rally in staggered manner.

Try to own real assets which are limited in this world like Bitcoin, Gold or Land. Never jump into them at wrong price. Observe the market, learn and set prices when to dive in !!