Crypto was once touted as a ‘safe haven’ asset – why did it crash too this week?
theconversation.comWe’ve just seen how quickly market turbulence can spread across the world of finance. At the start of the week, fears of a US recession and a Japanese interest rate hike sent shockwaves across equity markets, currency markets (also known as forex markets) and bond markets.
The Dow Jones Industrial Average – an index that tracks a range of US shares – fell by more than 1,000 points. Japan’s stock market suffered its worst fall in 37 years.
But amid all the chaos, some of the largest losses accrued to one of the most volatile of markets – cryptocurrencies. Bitcoin fell by 15% in just 24 hours, and Ethereum by 22%.
Many global markets – including crypto – have now rebounded somewhat since the crash. Whether we’re out of the woods yet remains unclear.
