“The money isn’t gone, it’s just someone else who has it.” This saying also applies to the various asset classes that compete for their investors’ money. Depending on the market and, above all, interest rate phase, some asset classes benefit from capital inflows at the expense of others. With the rapid rise in key interest rates, stocks, cryptocurrencies and precious metals have lost out to monetary assets such as bonds and fixed-term deposits. Bitcoin and other cash-free assets have lost out to U.S. Treasury bonds and savings accounts.
The result was and is that investors’ cash holdings are reaching new record levels. Never before has so much capital been tied up in monetary assets. However, rising stock and crypto prices signal that we are moving towards an end to this “cash mania”. This article therefore addresses the following aspects:
- How high the cash holdings are and what movement patterns can be recognized
- In which order the different asset classes benefit from “dissaving” and why Bitcoin reacts to this more strongly than stocks
- Why a new boom in stalking products is imminent
Read more with BTC-ECHO Plus+
-
Unlimited access to Plus+ content -
Exclusive articles and analysis -
Across devices (web & app) -
Much less advertising
You can read these and many other articles with BTC-ECHO Plus+