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| Someone is aboard the bull in front of the New York Stock Exchange. © AFP=News1 |
From the beginning of the new year, the capital market rally continues with Bitcoin surpassing 34,000 dollars.
The Wall Street Journal of the United States (WSJ) reported that △ Global low interest rates due to the Corona 19 pandemic (a pandemic) △ Anticipation of the end of the corona pandemic due to the release of the vaccine △ All rising in the new year due to signs of economic recovery in China and other emerging markets. It was reported on the 3rd (local time) that the’everything rally’ will take place.
WSJ said investors are investing more aggressively, especially in anticipation that the global economy will recover in the second half of the year as the vaccine is released.
First of all, the stock market swelled with anticipation for a new year in 2021 even though the corona pandemic crisis has not yet ended.
All three indexes of the US stock market rose last year. Last year, the Dow index rose 7.3%, and the Standard & Poor’s (S&P) 500 index jumped 16.3%. The Nasdaq index reached 43.6%, the largest increase since 2009.
Investors believe that the stock market will continue to rally this year following last year. Investors are betting bigger on the normalization of the post-corona era this year.
In a survey last December by Bank of America Global Research, Wall Street’s big players predicted that the Corona 19 vaccine and the US’ zero interest rate would boost the stock market this year. “As a whole, the market doesn’t seem to be overbought,” said Tim Grekiki, chief investment strategist at Inverse Scuncell.
As emerging markets including China are also expanding, the product market is expected to rally. When the global economy shows signs of recovery, the prices of commodities such as copper will increase.
In addition, Bitcoin has been rallying since the beginning of the year. Bitcoin is on the rise, surpassing 34,000 dollars in the new year.
As of 12:00 p.m. on January 3rd (Korean time), Bitcoin is recording $33,804, up 8.2% from 24 hours ago in the US coin market. Bitcoin also exceeded $34,000 during the intraday, Bloomberg reported.
The reason Bitcoin is rallying recently is because it has abundant liquidity and institutional investors are entering the market one after another, and ants are also following purchase. Accordingly, experts believe that the Bitcoin rally will continue for the time being.
“Bitcoin will surpass $50,000 in the first quarter,” said Anthony Trencef, managing partner and co-founder of Nexo in London, the world’s largest cryptocurrency (virtual currency) lender, in an interview with Bloomberg.
Experts are convinced that the’Do not ask rally’ will proceed in the entire capital market based on abundant liquidity in the new year.