Mainstream financial markets have been falling since a week amid geopolitical tension between USA and Korea. Tensions escalated when North Korea claimed “only absolute force” can work with Trump and again threatened attack around the U.S. Pacific territory of Guam.
Trump remarked that “They’ve been doing this to our country for a long time, for many years, and it’s about time that somebody stuck up for the people of this country and for the people of other countries”.
He added, “I will tell you this, North Korea better get their act together or they’re going to be in trouble like few nations ever have been in trouble in this world.”
With the tensions seemingly on all time high, some experts also fear a Nuclear attack. In recent past google search with the keyword “World War 3” has also risen significantly showing the growing concerns and anxiety among common people.
Although it may be a remote possibility, but in case of a war, financial markets are likely to take a significant hit given the fact that valuations globally are being considered to be on the higher side and markets were anyways headed for a correction as per many experts. Gold prices have also been more or less stagnant since a few months. Several investors have burned their hands with Crude Oil trades in the past. Real estate market also does not look like a very promising investment destination in most parts of the world. So where will all the money be parked by high Net-worth investors? Which sector of investment instrument seems reasonable exciting as of now? What will be the obvious choice for these mega money dumpers?
You guessed it right – Crypto-Currencies… Now I am not saying that all this money will come into blockchain technology, but every investor would consider a scenario wherein banks or markets fail, economy of a particular country fails or liquidity becomes a challenge. One investment that may be still untouched and easily trade-able would be Bitcoin and AltCoins. Investors may want to have alteast a part of their protfolio invested into an asset that can help them in times of distress. Further, the current rally in Crypto markets may further bolden their resolve as the returns in Cryptos in any case have been higher in the past 3-4 years than any of the other traditional investment assets.
As a trader, you should keep a strict eye on further developments on this front and this could be the next major determinant of which way the crypto prices would head.
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