Блог компании CEX. IO | Week in Review (October 19-25): Cryptocurrencies Are a Safe Haven During the Storm in Financial Markets

Alexander Yanyuk, CEX.IO Broker finance expert comments:

Last week demonstrated a totaldollar weakness due to traditionaluncertainty emerging in the markets ahead of the US presidential election. However, there was a lull on the commodity floors. Oil slightly adjusted to the opening price of the week and traded at $42.07 on Friday, continuing to remain within the $40-45 range. The dynamics of gold quotes also turned out to be minimal, the price of the precious metal added less than $1 over the week and ended the period with the formation of a doji at around 1904. Everything indicates the formation of a “thin market”, whose participants are only interested in the outcome of the elections, while other important news and events are simply ignored.

In the foreign exchange market, most assets were recapturedrecent gains against the US dollar. However, this situation should not be considered a resumption of the anti-dollar trend, since this week a correction and return of quotations of the main currencies is very likely, if not to the minimum values, then at least to the middle of the formed range. The focus is on the US elections and investors are unlikely to want to test the strength of the markets. The ruble, like most other currencies, strengthened its position against the US dollar, the USD/RUB pair fell to 76.12. The dollar thus lost almost two rubles in value. We are taking a wait-and-see approach to the ruble, however, most likely, this week the Russian currency will correct against the dollar and return to 78.

For cryptocurrencies, last week ended onon a positive note. On Sunday, October 25, Bitcoin traded at $13,000, its highest level since the summer of 2019. Ethereum broke through the $400 mark and appears to have settled above it. The dynamics of digital assets differ significantly from the dynamics of fiat currencies and traditional financial instruments. Bitcoin reaching local highs indicates market participants' uncertainty about the consequences of the US elections and the financial stimulus package for the global economy. Since Bitcoin and other cryptocurrencies do not depend on the actions of central banks and the turning on of the “printing press,” market participants view them as a “safe haven” in which to shelter from the storm of uncertainty. However, there is every chance that the current week could become a correctional one, and Bitcoin quotes will return to $12,300 - $12,500.

Dynamics of main assets for the week (October 19 - 25)

Brent crude oil fell from $ 42.81 to 42.07 (-1.72%)

Gold rose from $ 1903.20 to 1904 (+ 0.04%)

The USD / RUB pair fell from 77.89 to 76.12 (-2.27%)

Bitcoin rose from $11,362 to 13,000 (+14.42%)

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