The token market has plummeted by more than half. Has capital sensed danger?
Yesterday, the US market did not seem to be calm. First, the U.S. stock market crashed, while the Nasdaq Index plummeted by more than 3%, followed by the S&P 500 Index, which fell 2.45%, and the Dow Jones Index fell 1.75%. Technology stocks even fell across the board. Among them, technology stocks led by Tesla took the lead. It is understood that Tesla has plummeted by more than 8%, while Apple, Facebook, Google, and Amazon have also been hit hard, falling by more than 3%.
Contrary to the trend of U.S. stocks, U.S. bond yields soared and collectively rose. Among them, the 3-year U.S. Treasury Yield, 5-year U.S. Treasury, and 10-year U.S. Treasury soared above 10 basis points.
From another perspective, the soaring U.S. bond yields means that the stock market, which has always been optimistic, has lost its absolute advantage. Compared with the current bond market, it seems to be significantly lower.
It seems that capital has sensed the risks in the venture capital, and a large amount of funds have begun to flood into the US debt field. Even Bitcoin, which was once optimistic before, has also ushered in a sharp decline. As of now, Bitcoin has fallen 7.87% in 24 hours, falling below $47,000. Affected by Bitcoin, most of the tokens in the crypto market have plummeted, and only a few are still strong.
Looking at the plunge in the crypto market, in addition to the negative impact of Yellen’s previous speech, there is also the impact of Biden’s speech yesterday. Biden decided to air strikes on Syrian and Iranian militia organizations, and this may have stimulated the hearts of extremist organizations. According to US media reports, on February 25, local time, the US Intelligence Agency learned that extremists were planning an attack on the U.S. Capitol building during Biden’s speech, while the Congress maintained the high alert until the end of the speech.
In addition, according to the latest news, the CEO of Tesla, Elon Musk may be investigated by the US Securities and Exchange Commission (SEC) for his tweets about Dogecoin. This has also promoted the plunge of tokens led by Bitcoin.
So, where will the blockchain market go in the future? Will capital still inject a large amount of funds into the token market?
It is believed that there will be capital inflows in markets where there is money. Although the United States and the European Central Bank have shown hesitation towards Bitcoin, the U.S. Treasury Department and the European Central Bank still approve of tokens. Therefore, even if capital senses danger, it will not transfer all the funds from the token market.
As countries become clear about their token policies, funds will enter in large quantities. Therefore, the token market should be deployed in advance for small and medium-sized retail investors. For example, store more tokens on the NGK blockchain. It is understood that all the tokens on the NGK blockchain, including NGK, BGV, SPC, and VAST, have valuable prospects and are worth holding for a long time.
In addition, the NGK blockchain will launch more on-chain tokens in the future. Each on-chain token is developed based on the bottom technology of the NGK blockchain, which has great commercial value.
In general, no matter where the capital will flow in the future, from the perspective of asset allocation, the tokens on the NGK blockchain should be restocked.