Bitcoin losses spread to other assets
Markets seem to be teetering on the brink of a broad selloff thanks to worsening geopolitical tensions, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
Market sentiment continues to sour
The drop in bitcoin appears to be prompting the beginnings of a broader selloff in other assets, as oil prices fall 2% and Wall Street gives up its fleeting opening gains. More tariff talk and signs of further rupture between the US and Canada piles fresh worries on investors, and as the Vix hits a fresh one month high it seems we might be on the cusp of a full-blown bout of market volatility.
Investors sell first and ask questions later
The atmosphere remains febrile across the globe. The UK’s move to ramp up the pace of defence spending is being seen as symptomatic of wider moves across the continent. While a boon for defence stocks, notably BAE and Rolls Royce, the worsening geopolitical situation will inevitably rebound on equities, and expensive US stocks are sure to be caught in the middle of any wildfire outbreak of selling.
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