A market crash is on the cards, the CEO of a social trading platform has predicted while cautioning the investors to play safe.
In a tweet on June 10, Yoni Assia, eToro’s CEO, anticipated that the equity market would go through a major crash in the upcoming “three weeks.”
Due to the highly speculative market scenarios, the cryptocurrency market is going to face the test as the gradual phase of decoupling is arriving soon and signaling the downturn in the conventional financial markets.
Market Crash Based on Historic Record: Buyer Beware
In a series of tweets, Assia notifying the commentators and opinionated about the correction which is hovering over the equity markets due to 2 reasons.
Assia mentioned that:
“Just to clarify, I believe we will see a correction since this rally seems to be fueled by speculation of retail investors. Historically these rallies end with a correction.”
Further, he said, “On the other hand, money is being printed in unprecedented amounts, and interest rates are zero.”
It is interesting to note that, despite coronavirus pandemic and the U.S. black live matters mass protests, on the death of George Floyed and the continued mayhem, the progression in the traditional stock market is still floating following the March market crash.
On the other hand, the S&P 500 has also recovered from approx. 2,200 points and as on date it is resting at 3,219 (+11.89 (0.37%), though 200 points still behind after March market crash.
Amid the soaring market, Assia claims on the stock market crash seem to be not digestible by the proponents and calling this claim as a conspiracy theory and hence, asking data from Assia to prove this claim.
Is Bitcoin a Safe Haven?
As per the data metrics site Skew, the performance of Bitcoin is surging and giving approx. 50% returns. With this surge, the major cryptocurrency is becoming the lucrative macro asset option for the buyers in Q2. At the same time, Bitcoin has started to show the signs of decoupling from the traditional macro market movements and becoming a sign of safe haven for the investors.
Earlier, KoinPost reported that with the increasing adoption of cryptocurrency, many crypto exchange platforms are trying to offer well-paid services to the investors and catching their attention. Recently, one such trading platform Gate.io has launched a 0% mixed collateral feature for the buyers to trade USDT Perpetual Contracts.