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Do you feel it? In the past period of time, Bitcoin has increasingly shown its linkage with global economic turbulence and traditional financial markets. For example, yesterday's price fluctuations were affected by the geopolitical conflict in Israel and the US port strike.
In addition, the U.S. Federal Reserve's (Fed) monetary policy decisions , U.S. unemployment rate, and the risk of economic recession... all have a direct impact on Bitcoin. As you can see from the chart below, the correlation between the SP500 index and Bitcoin has also recently reached an all-time high. Coupled with the upcoming U.S. election, the policies adopted by both parties to win over cryptocurrency voters have also attracted much attention.
Cryptocurrency and traditional finance are even more inseparable
From the author's observation, you may also find that we have published more reports on the overall economy recently, because we also believe that as cryptocurrency is gradually accepted and embraced by more people, the relationship between cryptocurrency and traditional financial markets The boundaries between them are gradually blurring.
In such an environment, cryptocurrency investors not only need to have basic knowledge about blockchain technology, but are also recommended to learn to interpret the international economic situation and the dynamics of traditional financial markets.
For example, understanding the direction of the Federal Reserve's policies and grasping changes in global economic indicators have become important references for investors to make reasonable decisions.
How to quickly become familiar with the global economy?
So, how to improve your financial knowledge in this rapidly changing market? We asked ChatGPT to sort out the following ways to improve your financial knowledge:
1. Continue to pay attention to news and international current affairs . Understand global economic events, such as the Federal Reserve's monetary policy, economic data from various countries and geopolitical events.
2. Learn basic financial knowledge. You can learn basic economics and financial theories, such as monetary policy, interest rates, inflation and other concepts, by reading introductory books, taking online courses or watching instructional videos.
3. Track market indexes and asset performance. Regularly observe the trends of important market indexes such as SP500, Nasdaq, and cryptocurrencies such as Bitcoin and Ethereum, and try to understand the correlation between these changes and international economic events.
4. Use financial tools and platforms. Using the data analysis platform, you can quickly obtain professional market information and interpretation to keep yourself at the forefront of information.
5. Join investment discussion communities. Participating in discussions can deepen your understanding of market trends, learn how others analyze market risks and opportunities, and get inspiration from actual cases. (But please make sure you are not joining a scam group)
Extended reading: A complete guide for blockchain newbies, the basics of cryptocurrency you need to know
Is Bitcoin still digital gold?
In addition, some people may wonder, is Bitcoin still digital gold? After all, its recent trend is closer to that of U.S. stocks but opposite to that of gold.
While BlackRock’s recent report noted that Bitcoin remains closer to a safe-haven asset in the long term, it may take longer for it to achieve the same effect as gold.
The short-term hedging narrative of BTC seems to have failed, which may be due to the following reasons:
1) Market panic spreads
2) Old OG whale shipping pressure
3) Bitcoin’s transaction convenience makes it easier for investors to sell quickly
4) Bull squeeze
