Bitcoin returned to the vicinity of $60,000 on June 24th, the second time this month has touched this price area. At the same time, the parallel weakness of gold and crude oil suggests that “hard asset trading”, which had previously revolved around currency devaluation and fiscal burdens, has continued to cool.
Technological unit bounced back. Encrypted asset pressure.
On Wednesday, the NASDAQ index rose by about 0.8 per cent, while Bitcoin fell by 3.2 per cent. Market risk preferences have not changed all over, and funds continue to flow to technology boards, especially AI-related equities.
The report mentions that the short rollback of the Technological Unit on the previous trading day indicated that the funds had not been significantly withdrawn from the growth block. In contrast, encrypted assets, precious metals and crude oil failed to keep up with the round.
The price of gold fell by $400,000 and the price of oil fell by $70.
In addition to bitcoin, the gold fell by $4000 per ounce and the crude oil fell down to $70 per barrel. The parallel weakness of several types of assets reflects a decline in market enthusiasm for “inflation-resistant and devaluation-resistant” transactions.
Such transactions had previously been driven by government debt and French-currency credit concerns, with funds going to assets such as bitcoin, gold and energy. Today, part of the funding is returning to the science and technology sector, where growth is expected to be clearer.
Investors moving towards more assessable growth targets
In an interview with CNBC, Philippe Laffont, a billionaire, hedge fund manager, said that he was “more worried” about the future of the TT. In his view, investors now had more choice than in the past, and some companies provided longer-term growth logic that could be more easily assessed.
He cited, for example, SpaceX and the emerging AI company as having a clearer narrative of growth, while the expansion of the stable currency had to some extent weakened the uniqueness of Bitcoin as an alternative financial asset.
Overall, the current market is not a mere risk avoidance, but rather a more visible redistribution of funds: a part of the funds is diverted from Bitcoin and other hard assets to AI Thematic and Science and Technology Units.