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Crypto loses its hedge role

Financial Times LogoFinancial Times1 mo ago

Crypto loses its hedge role

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Unfortunately, at this stage most of the industry is unregulated and the protections we take for granted when purchasing financial services are not generally provided in the crypto world.

A flight to quality occurs at times of economic uncertainty, during which investors rebalance their portfolios and move out of volatile assets (high-risk high-return) such as equities to lower-risk lower-return assets, such as bonds or cash.

Also, Celsius, a crypto lending platform with over $20bn in assets, has frozen clients’ withdrawals of stablecoin due to liquidity difficulties.


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Article Details

Author / Journalist: Ian Taylor (CryptoUK Executive)

Category: MarketsFinanceInvesting

Topics: Asset Other Bitcoin Institutional Assets Crypto Markets Financial Stablecoin Investors

Source Website Secure: Yes (HTTPS)

News Sentiment: Neutral

Fact Checked: Legitimate

Article Type: News Report

Published On: 2022-07-01, 04:00:20

News Timezone: GMT -5:00

News Source URL: ft.com

Language: English

Reading Time: 7 minutes read

Article Length: 1130 words

Coverage Area: United States

Availability: Desktop Web, Mobile Web

News ID: 24271

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About Financial Times

Financial Times Logo

Main Topics: MarketsFinanceInvesting

Official Website: ft.com

Update Frequency: 16 posts per day

Year Established: 1888

Headquarters: United States

News Last Updated: 8h ago

Coverage Areas: United States

Ownership: Independent Company

Publication Timezone: GMT -5:00

News Language: English

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Website Security: Secure (HTTPS)

Publisher ID: #3

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