While the risk appetite decreased in the US stock markets, the VIX index, which measures investors’ short -term fluctuation expectations, rose to 39. This stands out as one of the highest values observed since October 2020. China’s new customs duties for the United States have caused shake in global markets. Increased uncertainty began to make the impact of both traditional markets and crypto money markets.
VIX index gives a horror signal
This rise in the VIX index clearly shows that investors have serious uneasiness about the future of the market. This indicator, also known as the “Horror Index ,, is carefully monitored especially during the volatility shaped by sudden news streams. China’s new customs duties put into force in response to Washington prepared the ground for the rapid rise of this index.
At the same time, the decreases in US stock futures transactions were a concrete reflection of this uneasiness. Increased sales pressure in the Wall Street strengthened investors’ tendency to escape the risk. This climbing in the index is fed not only from the tension between China and the US, but also from increasing question marks for global economic growth and interest policies.
Interest reduction expectations from Fed are increasing
These developments in the financial markets have also changed the expectations of the US Federal Reserve (FED) for monetary policies. According to CME Fedwatch data, investors have increased from 100 basis points to 116 basis points on the possibility of interest reduction in 2024. This increase is read as a slowdown signal in the economy.
Increasing the expectation of interest rate reduction may lead to a hopes of recovery in risky assets. However, the current picture shows that investors continue to behave in caution. New macroeconomic data to be announced in the United States and explanations from the FED members can make these expectations even more clarified in the coming period.
Bitcoin is wavy, volatility is at the summit
Stress in global markets was reflected in the crypto money market. Bitcoin $82,543.65It was traded at about $ 82,500 with a depreciation of 0.7 %during the day. This decline once again revealed that Bitcoin could not function in the uncertainty periods in the markets.
The Deribit DVOL index, which measures Bitcoin’s 30 -day expected volatility rate, reached 54.6 %on an annual basis. This was recorded as the highest volatility rate of the last two weeks. For crypto currency investors, this level means a period that needs to be followed carefully in terms of both opportunities and risks.
While the developments in the markets increase the search for safe port of investors, the fluctuation of both traditional assets and crypto currencies can continue. Analysts believe that geopolitical risks and central bank policies will continue to be decisive in pricing in the coming weeks.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
