The crypto community continues to be optimistic that despite the recent crash, prices will rise again. One of those optimistic about the crypto market is Cardano CEO, Charles Hoskinson. In the last week, markets around the world have crashed. Just hours ago, we announced that gold which was looking resilient and a perfect safe haven for investors also crashed. The recent events have prompted the FED chairman to release a statement reassuring investors of the strength of the economy.
Cardano CEO: Crypto The Best Hedge
Although it has not been the case in the last one week, crypto has historically been the best hedge for traditional markets. Its lack of correlation with the stocks, in particular, has been ensured that crypto is a must-have during their downfalls. This week has seen this trend change. As traditional markets plummeted, the crypto market followed the same trend.
Buying Bitcoin https://t.co/2nItOqyxMP
— Mr.Hodl🌕🍿 (@MrHodl) February 28, 2020
Despite this, Cardano CEO Charles Hoskinson, still believes that crypto is the best hedge. He says that if SARS-CoV-2 (otherwise known as Coronavirus) gets big, the only hedge from tumbling markets and stocks will be crypto.
Dear markets, just an FYI, crypto is the best hedge in the world against a global pandemic. Should SARS-CoV-2 get big, the stock market is done and governments will collapse. Things that live in the digital world are resistant to this and will benefit from the social change
— Charles Hoskinson (@IOHK_Charles) February 28, 2020
His statement comes just hours after the FED Chairman Powell released a statement over the losses in the markets.
$6B Wiped Out This Week
In the last week, the stock market has wiped out around $6B marking one of its worst runs in recent times. This has further ignited fears of a financial crisis in the months to come.
The FED, currently been prompted to cut rates and stimulate the economy has been responding on Friday. Chairman Powell has noted that the FED will use all the tools at its disposal to ensure economic stability. This some analysts think is a sign of coming rate cuts.
Since the Fed claims the U.S. economy is strong, why would it need to take action to support it? Their statement was clearly aimed at the stock market, which is not strong but in dire need of support. Before it takes decisive action to prop it up, the Fed is trying to talk it up.
— Peter Schiff (@PeterSchiff) February 28, 2020
He has despite stating that the economy is looking good added that the ongoing Coronavirus epidemic poses a great economic threat.
The crypto community is keen to see whether crypto continues to rally as it started the year. This, or continue to plummet with the traditional markets. In this scenario, the stock market can be aided by the government, the crypto market is on its own which means it could suffer huge losses.