19. 04. 2024 | Natalie Bezděková

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In recent days, we have witnessed turbulence in the cryptocurrency market, especially when it comes to Bitcoin. Its value has been plummeting to the $62,000 level, a significant drop of more than 10 percent in a single week. This fall is in response to the recent decline in US stock indices, which have fallen by units of percent. This development not only reflects market volatility, but also raises questions about the future of Bitcoin and other cryptocurrencies.

What is happening on a global level? This week we expect inflation data to be released from major economies outside the US, including Canada, the UK and the European Union. Inflation is expected to fall, but the reality may be different due to rising oil and commodity prices. These costs are reflected in production and transportation costs, which may affect the prices of all products.

Last week the US market started another earnings season for the first quarter of 2024. Financial institutions such as CitiGroup, JP Morgan and Wells Fargo released their results, which mostly showed a decline. Bank of America even warned of rising inflation that could reach as high as 4.8 percent ahead of the November presidential election. This price rise is also being reflected in everyday life as fast food prices are starting to match those of regular restaurants. This reflects the overall inflationary situation and may have an impact on consumer confidence and behaviour.

There is panic in the stock market and investors are looking for safe assets. Major stock indices such as the S&P 500 and the Nasdaq 100 have seen significant declines. Rising yields on government bonds and inflation fears are leading to a sell-off in equities and a search for alternatives. This may also have an impact on the cryptocurrency market, with Bitcoin falling below the USD 62 000 level.

While Bitcoin is returning to lower levels, gold, on the other hand, is seeing growth. US bank Goldman Sachs is raising its outlook for the gold price to USD 2,700 per ounce, with further interest in the safe haven metal expected. Investors are beginning to turn to traditional safe-haven assets such as gold, which may be a reaction to recent market volatility. This situation shows that even in the age of modern cryptocurrencies, gold still has its place as a stable haven in times of financial crises.

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Natalie Bezděková

I am a student of Master's degree in Political Science. I am interested in marketing, especially copywriting and social media. I also focus on political and social events at home and abroad and technological innovations. My free time is filled with sports, reading and a passion for travel.