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  • Is Gold or Bitcoin the Best Safe-Haven Asset?

    Is Gold or Bitcoin the Best Safe-Haven Asset?

    A safe-haven asset is an investment that retains or increases in value during periods of market uncertainty, financial crises, or economic downturns. These assets offer stability when traditional markets experience turbulence. Investors have historically turned to gold as the ultimate safe-haven asset. However, Bitcoin has emerged as a new contender, often called “digital gold.”

    With inflation concerns, rising debt, and financial uncertainty, the debate over gold vs. Bitcoin as a safe-haven asset has intensified. Some believe gold remains the most reliable option, while others argue that Bitcoin offers better protection in today’s digital world. But which asset is truly the best safe-haven?

    To answer this, we’ll analyze their characteristics, benefits, and risks. We’ll also examine their performance during economic crises and inflationary periods.

    What Makes an Asset a Safe-Haven?

    Investors seek safe-haven assets during economic instability. A true safe-haven asset must possess the following qualities:

    • Scarcity – The asset must have a limited supply to ensure long-term value.
    • Liquidity – Investors should be able to buy and sell it easily in global markets.
    • Store of value – The asset should maintain purchasing power over time.
    • Hedge against inflation – It should protect against currency devaluation and rising prices.
    • Resilience in market downturns – The asset must perform well during stock market crashes or recessions.

    Gold and Bitcoin share some of these qualities, but they also differ in many ways. To determine which is the better safe-haven asset, let’s analyze each in detail.

    Gold as a Safe-Haven Asset

    Gold has been used as money, a store of value, and a hedge against inflation for centuries. It is one of the most trusted assets during financial crises. Governments and central banks also hold large gold reserves as a financial safeguard.

    Why Gold is a Trusted Safe-Haven

    • Proven Track Record – Gold has been a stable store of value for over 5,000 years. It has survived financial crashes, wars, and hyperinflation.
    • Low Volatility – Gold prices tend to rise gradually, avoiding extreme price swings.
    • Universally Accepted – Gold is recognized globally and remains valuable in any economy.
    • Hedge Against Inflation – Gold prices tend to rise when inflation increases, preserving purchasing power.

    For example, during the 2008 financial crisis, gold prices surged as investors sought safety. When global stock markets crashed, gold became a preferred store of value. Similarly, during the COVID-19 pandemic in 2020, gold reached an all-time high of over $2,000 per ounce.

    Challenges of Gold Investment

    Despite its benefits, gold has some limitations:

    • Storage and Security Issues – Gold must be stored physically in vaults, which adds extra costs.
    • Government Confiscation Risks – In 1933, the U.S. government confiscated private gold holdings to stabilize the economy.
    • No Passive Income – Gold does not generate interest or dividends. Its value depends entirely on price appreciation.

    These challenges have led some investors to explore digital alternatives like Bitcoin.

    Bitcoin as a Safe-Haven Asset

    Bitcoin was created in 2009 as a decentralized digital currency. It operates without central banks or governments, making it an appealing option for those seeking financial independence.

    Some investors consider Bitcoin the new digital safe-haven asset. Its supporters argue that it has the potential to replace gold in the modern financial system.

    Why Bitcoin is Gaining Popularity as a Safe-Haven

    • Fixed Supply – Only 21 million bitcoins will ever exist, making it even scarcer than gold.
    • Decentralization – Bitcoin is not controlled by any government, making it resistant to political and economic interference.
    • Easy to Store and Transfer – Unlike gold, Bitcoin can be stored in digital wallets and transferred globally within minutes.
    • High Growth Potential – Bitcoin has seen massive price appreciation over the years, offering significant returns.

    For example, in March 2020, Bitcoin dropped to $5,000 during the COVID-19 market crash. However, it rebounded quickly, surpassing $60,000 by 2021. This rapid recovery reinforced its potential as a store of value.

    Challenges of Bitcoin Volatility

    Despite its benefits, Bitcoin has significant risks:

    • Extreme Price Volatility – Bitcoin volatility is much higher than gold. It has experienced price drops of 50% or more in short periods.
    • Regulatory Uncertainty – Governments are still formulating cryptocurrency regulations. Some countries have banned Bitcoin altogether.
    • Cybersecurity Risks – Bitcoin storage requires secure digital wallets. Hacks and scams have led to massive losses for some investors.

    Bitcoin’s volatility makes it a riskier option than gold. However, many believe its long-term potential outweighs these risks.

    Gold vs. Bitcoin: A Performance Comparison

    1. How They React During Economic Crises

    • Gold – In financial downturns, gold investment typically rises as investors seek safety.
    • Bitcoin – Bitcoin initially drops during stock market crashes but recovers quickly due to high demand.

    For example, in 2020, gold and Bitcoin both surged after initial market crashes. However, Bitcoin’s recovery was faster, leading some to call it “digital gold.”

    2. Hedge Against Inflation

    • Gold – Historically, gold has been the most reliable hedge against inflation.
    • Bitcoin – Some consider Bitcoin an inflation hedge, but its short history makes this uncertain.

    When inflation rises, gold prices typically increase. Bitcoin, on the other hand, is still proving its role as a hedge against inflation.

    3. Store of Value

    • Gold – Has been a store of value for thousands of years.
    • Bitcoin – Still new but gaining acceptance as a long-term store of value.

    While gold remains the dominant store of value, Bitcoin’s rapid growth suggests it could challenge gold in the future.

    Which is the Better Safe-Haven Asset?

    The answer depends on an investor’s risk tolerance and financial goals.

    • Choose gold if:
      • You want a stable, low-risk investment.
      • You prefer a time-tested store of value.
      • You seek protection against inflation with minimal volatility.
    • Choose Bitcoin if:
      • You are comfortable with price swings and high volatility.
      • You believe in the long-term growth of digital assets.
      • You want a decentralized asset with easy transferability.

    A Balanced Approach: Diversifying with Both Gold and Bitcoin

    Many investors are choosing to diversify by holding both assets. This strategy combines gold’s stability with Bitcoin’s growth potential.

    For example:

    • Gold provides security in economic downturns.
    • Bitcoin offers higher returns and easier digital transactions.

    By investing in both, investors can hedge against inflation while also benefiting from Bitcoin’s upside potential.

    Conclusion

    Gold and Bitcoin both have unique strengths as safe-haven assets. Gold is the traditional choice with a long history of stability. Bitcoin is an emerging option with high potential but greater volatility.

    The best strategy may be diversification. Holding both gold and Bitcoin allows investors to balance stability and growth. As global financial systems evolve, Bitcoin’s role as a safe-haven asset will become clearer. For now, investors must decide which asset aligns best with their financial goals.

    Whether you choose gold, Bitcoin, or both, protecting wealth in uncertain times is crucial. Understanding these assets can help you make informed investment decisions for a secure financial future.

    Click here to read our latest article Forex Trading with Economic Calendar

  • Is Cryptocurrency the Future of Finance? A Look at Its Impact

    Is Cryptocurrency the Future of Finance? A Look at Its Impact

    Cryptocurrency has taken the world by storm, transforming how we think about money and finance. From Bitcoin to Ethereum, it has created a new paradigm in the financial world. Built on blockchain technology, cryptocurrencies promise decentralization, transparency, and financial inclusion. But is cryptocurrency truly the future of finance, or is it a fleeting trend? This article delves deep into its impact, examining both the opportunities and challenges it presents.

    What Is Cryptocurrency and Why Does It Matter?

    Cryptocurrency is a digital or virtual currency that uses cryptography for security. Unlike traditional currencies, it operates independently of central banks. Bitcoin, the first cryptocurrency, was introduced in 2009 and remains the most popular. It paved the way for other digital assets and decentralized finance.

    Blockchain technology powers cryptocurrencies. This technology is a distributed ledger that records transactions transparently and immutably. For example, every Bitcoin transaction is stored on a decentralized network of computers, making it nearly impossible to alter. This system ensures trust without needing intermediaries like banks or payment processors.

    Cryptocurrencies matter because they challenge traditional financial systems. They promise faster, cheaper, and borderless transactions. Additionally, they enable financial inclusion for millions who lack access to traditional banking.

    The Role of Blockchain Technology in Shaping the Future

    Blockchain technology is the backbone of cryptocurrencies. Its decentralized nature ensures that no single entity controls the system, enhancing security and transparency. This innovation has far-reaching implications beyond digital currencies.

    For instance, blockchain is transforming industries like supply chain management. Companies like IBM use blockchain to track goods, ensuring transparency and reducing fraud. In healthcare, blockchain helps secure patient data and streamline medical record sharing.

    In the financial world, blockchain underpins decentralized finance (DeFi). DeFi platforms like Aave and Uniswap allow users to lend, borrow, and trade without intermediaries. This system empowers individuals, giving them more control over their finances. Blockchain also eliminates inefficiencies, making transactions faster and more cost-effective.

    However, blockchain technology faces challenges. Scalability remains a concern, as networks struggle to handle high transaction volumes. Ethereum, for example, has transitioned to a proof-of-stake system to address these issues. Despite these hurdles, blockchain’s potential to revolutionize finance is undeniable.

    Bitcoin: The Pioneer of Cryptocurrency

    Bitcoin is often referred to as “digital gold” due to its finite supply and store of value. It was the first cryptocurrency to prove that digital currencies could exist without central authority. Bitcoin’s success sparked the creation of thousands of other cryptocurrencies.

    One of Bitcoin’s key features is its decentralization. Unlike traditional currencies, it is not controlled by any government or institution. This independence makes Bitcoin an attractive option in countries with unstable economies. For instance, in Venezuela, where hyperinflation has devalued the bolivar, Bitcoin offers a reliable alternative.

    Bitcoin also plays a significant role in investment portfolios. Many institutional investors consider it a hedge against inflation, similar to gold. Companies like MicroStrategy have allocated billions to Bitcoin, believing in its long-term value.

    Despite its popularity, Bitcoin has drawbacks. Its price volatility makes it a risky investment. Additionally, its proof-of-work mechanism consumes significant energy, raising environmental concerns. Still, Bitcoin remains a symbol of cryptocurrency’s potential to reshape finance.

    Decentralized Finance (DeFi): A Game-Changer for Financial Inclusion

    Decentralized finance, or DeFi, is one of cryptocurrency’s most transformative applications. It aims to recreate traditional financial systems on blockchain networks, removing intermediaries like banks and brokers. DeFi platforms offer services such as lending, borrowing, and trading.

    For example, Uniswap allows users to trade cryptocurrencies directly, without the need for an exchange. Similarly, platforms like Compound enable users to earn interest on their digital assets. These innovations empower individuals by giving them direct control over their finances.

    DeFi also promotes financial inclusion. Traditional banks often exclude people without credit histories or sufficient income. In contrast, DeFi platforms only require internet access. This accessibility benefits individuals in developing countries, where banking infrastructure is limited.

    However, DeFi is not without risks. The lack of regulation leaves users vulnerable to scams and hacks. Additionally, the complexity of DeFi platforms can be a barrier for newcomers. Education and stronger security measures are essential for DeFi to achieve its full potential.

    The Role of Cryptocurrency Regulation

    Cryptocurrency regulation is a hotly debated topic. Supporters argue that regulation is necessary to protect investors and ensure market stability. Critics, however, fear that excessive regulation could stifle innovation.

    Governments worldwide are adopting different approaches to cryptocurrency regulation. For instance, the United States has taken a cautious stance, with the Securities and Exchange Commission closely monitoring the market. On the other hand, countries like El Salvador have embraced cryptocurrency, making Bitcoin legal tender.

    Regulation also addresses concerns about illicit activities. Cryptocurrencies have been used for money laundering and tax evasion due to their anonymity. Clear regulatory frameworks can help prevent these abuses.

    At the same time, overregulation can push innovation to crypto-friendly jurisdictions. For example, countries like Singapore and the UAE have implemented supportive laws to attract blockchain startups. Striking the right balance between regulation and innovation is crucial for cryptocurrency’s future.

    Environmental Concerns and Sustainable Solutions

    One of the biggest criticisms of cryptocurrencies is their environmental impact. Bitcoin’s proof-of-work mechanism consumes vast amounts of energy, contributing to carbon emissions. This has led to calls for more sustainable practices within the industry.

    Ethereum has taken a significant step by transitioning to a proof-of-stake system, which reduces energy consumption by over 99%. Other cryptocurrencies, like Solana and Cardano, also prioritize energy efficiency.

    Initiatives like green mining aim to address environmental concerns. Companies are exploring renewable energy sources to power mining operations. For example, Tesla halted Bitcoin payments due to environmental concerns but hinted at resuming them if mining becomes more sustainable.

    The industry must prioritize sustainability to gain wider acceptance. As public awareness grows, environmentally friendly practices will play a crucial role in cryptocurrency’s future.

    The Future of Cryptocurrency in Finance

    Cryptocurrency has the potential to become a cornerstone of the financial world. Its advantages, such as decentralization and accessibility, make it an attractive alternative to traditional systems. However, challenges like volatility, regulation, and environmental impact must be addressed.

    Several trends point to cryptocurrency’s growing importance. Central banks worldwide are exploring central bank digital currencies (CBDCs), inspired by cryptocurrency technology. These digital currencies combine the benefits of blockchain with the stability of fiat money.

    Additionally, technological advancements are improving blockchain scalability and security. Layer-2 solutions, such as the Lightning Network, enable faster and cheaper transactions. These innovations make cryptocurrencies more practical for everyday use.

    Despite these advancements, mainstream adoption requires greater public trust. Educating users and addressing regulatory concerns will be key. As more industries integrate blockchain technology, cryptocurrency’s role in finance will only grow.

    Conclusion

    Cryptocurrency is not just a financial innovation; it is a cultural and technological shift. It challenges traditional systems, promotes financial inclusion, and inspires innovation. From Bitcoin to decentralized finance, its impact is undeniable.

    However, the path forward is complex. Regulation, environmental concerns, and technological barriers must be navigated carefully. With collaboration and innovation, cryptocurrency could become a fundamental part of our financial future. The question is not whether cryptocurrency will shape finance but how it will evolve to meet the needs of a changing world.

    Click here to read our latest article Cryptocurrency Trends That We Wish We Knew Sooner

  • Bitcoin Price Shatters Records

    Bitcoin Price Shatters Records

    In a historic move that’s shaking up the financial world, Bitcoin has smashed its previous all-time high, soaring past $69,000. This explosive rally signals not just investor enthusiasm—but a broader shift in how digital assets are perceived in mainstream finance.

    At the heart of this surge? The long-awaited approval of spot Bitcoin ETFs by U.S. regulators. These investment vehicles have fundamentally changed the game, making Bitcoin more accessible and attractive to institutional and retail investors alike.

    Spot Bitcoin ETFs: The Game-Changer in 2024

    The U.S. Securities and Exchange Commission (SEC) made waves in January 2024 by approving several spot Bitcoin ETFs, allowing firms like BlackRock, Fidelity, and Invesco to offer Bitcoin exposure through traditional financial markets. Unlike futures-based ETFs, spot ETFs hold actual Bitcoin, tracking its price more directly and transparently.

    This single regulatory move unlocked a tidal wave of capital—more than $7.5 billion flooded into the market almost immediately.

    Primary benefits of spot Bitcoin ETFs:

    • Lower barriers to entry for investors
    • Elimination of the need for crypto wallets or exchanges
    • Institutional-grade custody and regulatory oversight
    • Stronger confidence among hesitant investors

    This development signaled a turning point. For the first time, traditional finance fully embraced Bitcoin as a serious investment asset—not just a speculative play.

    Why the Market Reacted So Strongly

    Historically, Bitcoin’s price has been heavily influenced by investor sentiment and adoption milestones. The introduction of spot ETFs addressed long-standing concerns about:

    • Volatility and regulation
    • Security risks
    • Ease of access

    As Wall Street titans entered the scene with ETF offerings, market sentiment flipped bullish. Suddenly, Bitcoin was no longer a fringe technology—it was a fully-fledged investment vehicle with institutional backing.

    Add to this the growing narrative of Bitcoin as “digital gold” in an inflation-prone macroeconomic environment, and the result is a perfect storm for a price breakout.

    Historical Context: From $16K to $69K in 18 Months

    To fully appreciate the magnitude of Bitcoin’s rise, we need to rewind to late 2022. After the FTX collapse and widespread industry scandals, Bitcoin plummeted to just $16,000, sparking fears of a total crypto collapse.

    Fast-forward to today, and we’re witnessing a full-circle comeback—fueled by institutional trust, better regulation, and mainstream adoption.

    Key factors behind Bitcoin’s revival:

    • Strong recovery from the 2022 crypto winter
    • Clearer global regulatory frameworks
    • Improved infrastructure and security in the crypto space
    • Increasing use of Bitcoin as a hedge against inflation

    This rally isn’t just a bounce—it’s a validation of Bitcoin’s long-term value proposition.

    The Role of Investor Sentiment and Confidence

    Investor sentiment plays a crucial role in any market cycle—and this one is no exception. The approval of spot Bitcoin ETFs has injected new energy into the market, restoring confidence among both retail and institutional players.

    Jad Comair, founder of Melanion Capital, notes that “today’s investors are far more confident allocating funds to Bitcoin than just a few years ago.” This sentiment has rippled across the entire crypto sector, drawing in capital that was previously sitting on the sidelines.

    Bitcoin Halving 2024: A Catalyst on the Horizon

    As if the ETF approval wasn’t bullish enough, the market is also bracing for the upcoming Bitcoin halving, expected in April 2024. This event reduces the block reward for miners by 50%, tightening Bitcoin’s already limited supply.

    Historically, each halving has been followed by a major bull run. With demand now surging and supply set to shrink, the potential for another explosive price move is strong.

    Previous halving cycles have shown:

    • ~12–18 months of sustained price growth post-halving
    • Institutional interest and media coverage peaking alongside
    • Acceleration of Bitcoin adoption globally

    Comparison to the 2021 Rally

    While 2021’s bull run was largely driven by retail hype, 2024’s rally is different. This time, we’re seeing:

    • Deep institutional participation via ETFs
    • Regulatory green lights rather than uncertainty
    • Real-world use cases and maturing infrastructure

    This shift points to a more sustainable, long-term growth trajectory, as opposed to short-lived speculative spikes.

    Challenges Ahead: Volatility, Liquidity & Profit-Taking

    Despite the optimism, the Bitcoin market isn’t without its headwinds. As prices soar, so does the temptation for early investors to take profits—potentially triggering short-term volatility.

    Also, current liquidity levels, while improving, still lag behind 2021 highs. This could cause price swings as the market digests new inflows and adjusts to the ETF-driven paradigm.

    Other key risks to monitor:

    • Regulatory pushback in other jurisdictions
    • Macroeconomic shocks or interest rate changes
    • Cybersecurity risks within the crypto ecosystem

    Conclusion: A Defining Moment for Bitcoin

    The convergence of spot Bitcoin ETF approval, a maturing regulatory environment, and the upcoming Bitcoin halving has created the perfect conditions for Bitcoin’s historic breakout.

    This is more than a price rally—it’s a paradigm shift in how we view and invest in digital assets. Bitcoin’s ascent past $69K not only redefines what’s possible in the crypto world but also reinforces its position as a credible, long-term investment.

    Call to Action

    If you’re considering exposure to Bitcoin, now is the time to stay informed and strategically positioned. Whether you’re a retail investor, trader, or institution, the evolving crypto landscape offers unique opportunities—and risks—that require attention.

    • Explore diversified digital asset strategies
    • Monitor ETF inflows and halving-related metrics
    • Stay ahead with reliable crypto insights and news

    Click here to read our latest article on Bitcoin ETF Boost Catalyzes

  • What Is A Bear Market? Is It A Good Time To Invest?

    What Is A Bear Market? Is It A Good Time To Invest?

    What does “Bear Market” mean?

    A bear market is characterized by an asset price decrease of at least 20 percent from recent highs. Clearly, these are hardly favorable circumstances, but fighting back might be risky.

    Here, we will discuss eight essential investing methods and mentalities that can help you remain cool and “play dead” while the stock market eats into your gains.

    Bear Market Strategies

    Keep Your Fears Under Control

    Wall Street has an ancient saying: “The Dow climbs a wall of fear.” In other words, the Dow has continued to increase throughout time despite economic problems, terrorism, and numerous other catastrophes. Always attempt to separate your emotions from your investing decision-making process. A few years from now, what appears like a great global calamity now may be regarded as little more than a blip on the radar screen. Remember that fear is an emotion that may impair logical decision-making. Keep your cool and continue!

    Invest Using Dollar Cost Averaging

    The most essential thing to remember during an economic slowdown is that negative years on the stock market are common; they are a natural component of the business cycle. If you are a long-term investor (with a time horizon of 10 years or more), dollar-cost averaging is one of your options (DCA). By acquiring shares regardless of price, you get shares at a discount while the market is down. Your cost will “average down” over time, resulting in a better total entry price for your shares.

    Act Dead

    During a bear market, bears dominate and bulls have no chance. According to an ancient proverb, the best course of action during a bear market is to pretend dead, just as you would if you saw a genuine grizzly bear in the woods. Fighting back would be very risky. By remaining cool and avoiding unexpected movements, you will avoid becoming a bear’s meal. Playing dead in financial terms refers to allocating a greater proportion of your portfolio to money market products, such as certificates of deposit (CDs), U.S. Treasury bills, and other assets with high liquidity and short maturities.

    Diversify

    Diversification is allocating a portion of your portfolio to stocks, bonds, cash, and other assets. The manner in which you divide your portfolio depends on your risk tolerance, time horizon, objectives, etc. Every investor’s circumstances are unique. A smart asset allocation plan will enable you to avoid the potentially harmful consequences of putting all of your eggs in one basket.

    Never invest more money than you can afford to lose.

    Investing is vital, but so are eating and staying warm. It is undesirable to invest short-term cash (such as money for the mortgage or groceries) in the stock market. As a general rule, investors should not invest in stocks unless they have a five-year or longer investment horizon, and they should never invest money that they cannot afford to lose. Bear markets and even slight market dips may be exceedingly devastating.

    Consider Excellent Values

    Bear markets may provide excellent investment opportunities. The secret is knowing what you’re searching for. A bear market is characterised by equities that are beaten up, battered, and priced too low. Value investors such as Warren Buffett often consider bear markets as purchasing opportunities due to the fact that the prices of excellent firms fall in tandem with the valuations of inferior companies, resulting in very favourable valuations. Buffett often increases his holdings in some of his favourite firms during market downturns because he understands the market’s propensity to unfairly penalise even outstanding businesses.

    BEAR
    Take Stock in Defensive Industries

    In general, defensive or non-cyclical equities do better than the market as a whole during bear markets. These sorts of stocks provide a constant dividend and dependable profits regardless of the market’s condition. Companies that manufacture non-durable home goods, such as toothpaste, shampoo, and shaving cream, are examples of defensive sectors, since consumers will continue to use these products throughout difficult times.

     Prefer Short

    There are opportunities to benefit from price declines. One method is short selling, which involves borrowing shares of a business or ETF and selling them in the hope of buying them back at a cheaper price. Short trading involves margin balances and might result in damaging losses if markets rise and short positions are covered, resulting in further price compression. Put options are another alternative, which increase in value when prices decline and guarantee a minimum price at which to sell an asset, thereby setting a floor for your losses if you are hedging. To purchase puts, you must be able to trade options in your brokerage account.

    Inverse exchange-traded funds (ETFs) provide investors with the opportunity to benefit from the decrease of significant indexes or benchmarks, such as the Nasdaq 100. When the main market indexes decline, these funds increase, enabling you to benefit while the rest of the market declines. These options may be acquired simply from your brokerage account, unlike short selling or puts.

    Why Is It a Smart Move to Continue Investing During Bear Markets?

    The stock market and the economy tend to rise over the long term. Bear markets may disrupt this generally upward tendency, but these declines always finish and reverse, resulting in new highs. By investing during bad markets, you may develop stronger holdings by purchasing equities at cheaper prices (“on sale”).

    What is the frequency of bear markets?

    Historically, bear markets in the United States occur every 4.5 to 5 years on average.

    Why Is This Known as a Bear Market?

    There are many conflicting hypotheses about the origin of the names bull and bear markets. Bulls often attack by thrusting their horns forward, while bears typically strike by bringing their claws downward. According to a second explanation, the name “bear” derives from the early fur trade, in which bearskins were seen as especially dangerous goods in terms of price and durability.

    Which bear market was the most severe to date?

    The 1929-1932 decline, which coincided with the Great Depression, was the most severe and longest bear market ever.

  • How to Trade Following a News Release?

    How to Trade Following a News Release?

    By creating a solid trading strategy and embracing essential risk management, traders must learn how to handle turbulent markets while performing a trade. Effective trading techniques are provided in this article for investors wishing to trade after a news release.
    1. Trend-based approach

    This strategy uses many periods and clearly defined degrees of support and opposition that are activated after a news release.

    Traders might use this method when a clearly defined level of support or resistance is being approached but not quite reached by the current market price. Market movement might be pushed toward the trend line by the volatility after the news announcement. Traders might try to trade in the trend’s direction and on any possible rebound if the price stays inside the trend line.

    The following four points are helpful for this kind of trade:

    • Find the trend’s direction on a daily chart.
    • Draw lines of support and resistance.
    • Choose a forex time range between 1 and 4 hours.
    • In an uptrend, buy near support, while in a downturn, sell near resistance.

    Keeping this in mind, it is crucial to use tight stops while following this approach since news releases have the power to surpass established levels of support and resistance.

    1. Dual spike breakout approach 

    This approach uses a five-minute chart to wait for market volatility to display a range before trading a break of that range. The US Non-Farm Payroll (NFP) announcement, which often has the most ability to affect the market, is included in this section for illustrative reasons.

    Wait 15 minutes for three candles with a five-minute burn time to shut after the NFP release. Be sure to notice the highest and lowest prices of the two closed candles. After that, put an entry order to buy at the highest price and an entry order to sell at the lowest price. Targets and stops may be specified whenever an order is triggered at a distance twice the width of the high/low channel, respectively, for short trades and long trades.

    Trade

    Volatility might cause the price to go above or below the short-term range, triggering an entry order and prompting a quick reversal to reach a stop loss. This is a drawback of this method.

    In the following situations, this approach may be used:

    • To display 5-minute charts, alter the chart’s display options.
    • Consider the highs and lows of the first three candles.
    • Place entry orders when the price crosses the range’s upper or lower bound.
    • Set limits and stops.
    • Get rid of the unfulfilled order.
    1. Using a News Reversal Strategy

    Immediately after a large news release, the market may move one way before reversing course and moving in the other direction.

    The news reversal method targets a swift, persistent direction change after a significant initial price move and seeks to trade the news after the announcement.

    Algorithms or the market may have sensed an overreaction in price, causing transactions to be placed in the other direction, which led to the reversal. The disadvantage of this approach is that the price keeps moving in the direction of the initial spike without experiencing any price reversals.

    trade
    How to put the news reversal technique into practice:
    • Initial price increase: When news is announced that has the potential to affect the market significantly, prices often increase.
    • Watch for a reversal: Traders might wait 10–15 minutes for the reversal to return the price to where it was before the release.
    • Enter as soon as the price crosses pre-release levels or falls below them.
    • Target Levels: Trading professionals might think about creating numerous goal levels. Trades may be closed out on half of the positions as soon as one is triggered, and the remaining positions’ stops can be moved to break-even.
    CONCLUSION FOR TRADING FOREX AFTER THE RELEASE

    A more cautious method to approach news trading might be to trade the news after the announcement. This is because a trader has time to construct a technical setup for their trade once the emotions from the news announcement have subsided. Whatever trading strategy you choose for news trading, risk management, and using little to no leverage is essential to keeping money in your account to place the next transaction.

  • Cryptocurrency Market: Recession fears halt the bounce.

    Cryptocurrency Market: Recession fears halt the bounce.

    Analysts do not see many encouraging signals to support a cryptocurrency boom. This article guides you through the news and highlights the day’s cryptocurrency market.

    On Monday afternoon, Bitcoin (BTC) was trading at about $20,800, giving up some of its previous week’s gains.
    The biggest cryptocurrency by market capitalization is maintaining its position above the crucial $20,000 threshold, but experts are pessimistic about the chances of a long-term uptrend.

    Cryptocurrency Market
    Image Source: Coindesk

    Simon Peters, a crypto analyst at EToro, said that the same toxic combination of low business profitability, inflation, and central bank rate rises that harmed equities and other assets this year also damaged crypto. Prices of cryptocurrencies have a growing correlation with market indices, especially those with a significant technological component. According to senior market analyst Craig Erlam of Oanda, the fizzling bitcoin rallies indicate a general lack of optimism toward riskier assets.

    Thoughts of the problematic cryptocurrency market lender Celsius Network and the bankrupt cryptocurrency hedge firm Three Arrows Capital seemed to lessen on Monday. President and co-founder of the Prosper Trading Academy’s Howard Greenberg told CoinDesk that the Bitcoin Fear & Greed Index is decreasing.

    Greenberg claimed, “observing the $22,650 level of the 200-week SMA (simple moving average) as the crucial price we must retake and maintain to witness a return to broader trading ranges across the Cryptocurrency Market.

    On Monday, most other cryptocurrencies fell. The second-largest cryptocurrency market’s currency, Ether (ETH), was recently trading at a little under $1,200, down 2.3 percent over the previous day. One of the most significant losers among cryptocurrencies this week was Polygon’s MATIC token, which fell 9.8 percent.

    According to the AAII short-term investor optimism poll, which market research company Macro Hive highlighted in a note, the threat of a recession dampened investor confidence in conventional markets, as optimistic sentiment plummeted to 19.4 percent and pessimistic view rose 11.4 percentage points to 58.3 percent.

    The Nasdaq index dropped 0.8 percent, and the S&P 500 dipped by 0.3 percent.

    According to Bloomberg, industrial metals like copper and tin are expected to experience their worst quarter since the 2008 financial crisis, highlighting the possibility of a recession.

    We are in a bear market, and it’s a bear that’s probably going to keep roaring, “Macro Hive’s CEO and head of research, Bilal Hafeez, published in a newsletter.

    Please click here for the News Updates from June 27th June, 2022.

  • Bitcoin Crashing:

    Bitcoin Crashing:

    #edgeforex #trading #market #stocks #money #forex #trader #broker #money #price #crashing #cryprocurrency #bitcoin crashing

    Since November, cryptocurrency prices have been crashing, and investors are currently on a selling binge, pushing prices to fall even lower. Approximately $130 billion has gone from the bitcoin market since Sunday. On Monday morning, Bitcoin was trading about $35,000, down nearly 50% from a record-breaking $69,000 in November, while Ether was trading around $2,400, also down roughly 50% from a $4,670 high. (By the end of the day, both cryptocurrencies had recovered somewhat.) Meanwhile, the Shiba Inu coin has dropped by 78%.

    Reasons Being 

    It’s difficult to pinpoint the exact cause of any cryptocurrency drop, but analysts have floated a variety of possibilities. The fall of Bitcoin may be only one part of a larger storey, as the stock market has been trending downward since the beginning of the year and recently had its worst week since March 2020, most likely in response to the Federal Reserve’s decision to raise interest rates and end its stimulus programme earlier than planned. (Stimulus money in people’s pockets also contributed to the cryptocurrency explosion we’ve seen throughout the course of the epidemic.) In harder markets, investors prefer to sell their riskier assets, including bitcoin.

    Over the last two years, as more traditional investors have been interested in cryptocurrencies, the stock and Bitcoin markets have become increasingly connected. The prospect of future regulation may also be frightening investors, as the Biden administration is slated to reveal a federal cryptocurrency policy next month. 

    Okay, but aren’t the small-time investors sticking to their guns? What if this is simply the Wall Street establishment jumping ship? 

    According to the Wall Street Journal, retail investors in particular appear to be driving the reduction in cryptocurrency values, since the number of smaller transfers decreased by more than 40% between the first and fourth quarters of last year.

    The sell-off is primarily the fault of new and short-term investors, some of whom purchased at the peak.

    Famous crypto boosters freaking out?

    Not out loud, at any rate. El Salvador’s president, Nayib Bukele, who made the country the first in the world to use Bitcoin as legal cash, revealed on Friday that his government has purchased another 410 Bitcoin since prices are cheap. On Wednesday, Elon Musk, possibly the most influential crypto supporter, tweeted a meme from the film Interstellar to mock the volatility of cryptocurrency.

  • Can Global Governments Ban Bitcoin?

    Can Global Governments Ban Bitcoin?

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    We’ve heard a lot about Bitcoin being declared officially dead. 

    This is referred to as FUD (fear, uncertainty, and doubt) or “scaremongering.” Japan has just legally authorised Bitcoin, and Hong Kong has clearly said that it would not regulate, taking a “hands off” attitude. Other nations will follow, and they will absorb all Bitcoin enterprises, which will benefit everyone throughout the world. 

    Bitcoin represents a paradigm shift in how people think about money and account for it. Prior to Bitcoin, only readers of Lewrockwell.com used the term “fiat.” Even those who dislike Bitcoin now refer to the dollar as “fiat.” A strong shift is underway, and it will not be halted.

    The United States is not the entire globe, and Bitcoin is a global currency. If Bitcoin is adopted in countries other than the United States, it will be one of the biggest software triumphs of all time. Nothing is stopping the rest of the world from embracing Bitcoin; the GSM standard was everywhere but the United States, and they finally had to cave and embrace it. 

    Bitcoin will be successful. There is nothing any government can do to stop it, just as there is nothing any government can do to stop file sharing via BitTorrent or Internet Relay Chat. It’s also not a matter of time. No amount of time will ever be enough to put the Bitcoin genie back in the bottle. This transformation is permanent.

    The only way out for anyone whose business is being threatened by Bitcoin is to fully embrace and incorporate it. The Japanese have realised this. 

    The courts in the United States (one in Brooklyn and one in Miami) are also causing people to awaken from their collective panic. Bitcoin is not money, according to two distinct courts in different countries. This implies that the “politicians” have no legal recourse to halt it. Texas has introduced legislation to protect Bitcoin as a right. Slowly but steadily, everyone is shifting to the right side of Bitcoin. 

    Many Americans assume that the government can and will simply adopt a federal law to eliminate Bitcoin.

    It is hard to prevent brilliant ideas from spreading in the internet age, because the world of 2017 is not like 1957, 1967, or 1977. Many sections of what was formerly known as the “Third World” now compete with the United States in terms of infrastructure. Someone will eat America’s lunch if it chooses Luddism and stupidity. 

    Bitcoin is unstoppable. This is a reality, not a belief, based on evidence of how it works and past peer-to-peer software that has persisted for decades.

  • Case for Gold

    For 5,000 years, gold has served as a store of wealth, providing security that other investments cannot equal. It hedges against currency deflation, geopolitical risk, and product price inflation. 

    GOLD 

    The yellow metal has a wide range of commercial applications. It is inert; does not tarnish or corrode. Gold does not require lubrication, maintenance, or repair. It can also be melted and molded easily into wires. As well as hammered into micro-thin sheets or alloyed with other metals.

    It is non-allergenic and conducts electricity. Gold is most commonly used in jewelry due to its beauty and shine.

    It is, nevertheless, used in electronics, space exploration, and medicine (including dentistry and treatment for rheumatoid arthritis and cancer). Gold has always been linked with achievement — Olympic medals, Oscars, and Grammy awards are all gold-plated.

    Gold mining has been falling since 2000, while demand has increased. This lends credence to the theory that the price will climb. Because it is not positively connected with stocks or bonds, it is a good complement to a portfolio diversification strategy.

    It is important to note that gold dealers, pricing, and fees are not regulated. While you may pick securities, many of them (such as gold mining equities) frequently depart from the metal’s price. It never evaporates or expires. Its supply expands year after year, implying that growing demand is required only to keep prices from plummeting.

    For at least four millennia, gold and silver. It has served as a store of value and a means of trade in every civilization in every corner of the globe. It provides unparalleled access to people of various economic backgrounds and technological knowledge. Gold is the ultimate money of central banks, while silver is the cash of the people. 

    Bitcoin

    Bitcoin, on the other hand, is the only completely noncorrelated asset type that provides exceptional benefits to portfolio diversification (improved returns with lower risk).

    As a digital asset, Bitcoin is the easiest to hold since it is available over the internet at any time and from any location. The Bitcoin network has never been hacked, giving investors trust. Also, there are hundreds of business users – revolutionizing every aspect of global trade.

    There is also an opportunity for cryptocurrencies because their digital character distinguishes them from gold and silver. However, this feature assures that cryptocurrencies will never replace gold and silver, and will instead increase the metal’s value.”

    Many people believe that Bitcoin and blockchain, the underlying technology used to generate bitcoin, are the most transformative technical advancements since the internet itself. In fact, many people refer to Bitcoin as “Internet 3.0”. It’s because, unlike the original internet, which linked people (think Facebook), and Internet 2.0, which connected objects (Bluetooth), Internet 3.0 links money (Bitcoin).

    The most persuasive argument, however, is that, unlike gold, the supply of Bitcoin is really set. Only 21 million Bitcoins will ever be created, representing a fixed supply in the face of rapidly expanding demand. Individuals were the only ones that purchased Bitcoin in their early days.

    While bitcoin is the “new kid on the block,” it’s disputed whether it will cut into gold’s market share for a variety of reasons. Because neither Bitcoin nor gold can be diluted or debased. They offer considerable benefits over fiat currencies. There is a chance that bitcoin will cease to exist as a result of unfriendly legislation. Some bitcoin derivatives are already illegal. Companies such as Facebook that have sought to launch cryptocurrency have been thwarted.

    So, while bitcoin is a newer investment that is undoubtedly getting a lot of attention, gold has held its worth for millennia. It is exceedingly doubtful that bitcoin will have the same amount of durability.

    Bitcoin is just 10 years old and has only existed in one monetary regime. The standard variation of bitcoin’s price is 75%. Making it an ineffective store of value.

    Recent price history demonstrates a significant tilt toward speculative interest. So much so that corporations are enticed to place bitcoin on corporate balance sheets to help develop assets in excess of business performance.

    Cryptocurrency is an inadequate monetary alternative. In the United States, submitting your taxes necessitates the voluntary declaration of your bitcoin gains. If a cryptocurrency transaction automatically generated an IRS statement, as a stockbroker transaction does, the speculative outlook may deteriorate.