Investors Are Leaving the Stock Market for the Cryptocurrency Market
OREANDA-NEWS. Investors are leaving the stock market for the cryptocurrency market. In April last year, the volume of trading on crypto exchanges was $100 billion, and in March 2021 — $1.2 trillion. Quite different sentiments are observed in the stock market — in April 2021, trading in the US stock market decreased by 27% on a scale compared to the previous month. The main reason is the loss of confidence in traditional financial institutions due to the non-stop operation of the printing press.
The same applies to shares: the ratio of share price to profit, normally 15-20, now exceeds 30, and for some «hype» companies reaches three-digit values. Experts ask, what is the reason for such a high valuation of certain shares?
Cryptocurrencies now seem to be assets, that are somehow protected from inflation, since at least for some of them, internal mechanisms provide for a limited amount of emission. Earlier it was reported, that the cryptocurrency Etherium crossed the $4100 mark and entered the Top 20 global assets by capitalization, coming close to Visa and Samsung.
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