Sunday , June 20 2021

Finally, did the battleship reach its equilibrium price?




The trade war, the rise in oil prices, the cooling of the world economy, and the signs of a break in the cycle of interest rate hikes in central banks have dominated investors' attention in recent weeks.

In this context, the Battlefield moved to a much second level in 2019, a situation that is very different from the one of the past two years.

In 2017, the star cryptoLight was one of the most profitable assets in the world, with a fierce rise of 1,400%, pushing it to nearly $ 20,000. Per unit. In 2018 the failure occurred and the price grew by 80% from its last peak.

In 2019, there has not been much in terms of input, which may be a sign of stabilizing an asset he had to face – along with other cripples – the strong attack on regulations in almost the entire world.

balance

So far this year Bitcoin has accumulated a shy decline of only 2.49% and in no day of this year daily changes have exceeded 10%, something very repetitive in 2017 and 2018.

Is he dear yet? Probably. In traditional assets like gold, for example, when the price equals production costs, speculators interpret it as a clue that it may be close to a floor as supply falls.

CryptoLabs work differently, but analysts at JPMorgan estimate that the weighted effective cost of crop production is about $ 4060 on average. worldwide in the fourth quarter of 2018.

"As the battlefield is currently traded below $ 3,600, it does not look like a good business. But the dispersion in the middle is high, which means there are big winners and big losers, "Bloomberg said.

The address

But is there a balloon finally? And if there was, finally broke out? Will he recover?

"People tend to overlook what happens after collapse. The South London Balloon in 1720 led the shares to be transferred from 100 to 1,000 euros and vice versa, but nevertheless the company prospered 133 years after, "he said in a column published in Bloomberg, the finance expert. , Aaron Brown.

AQR Capital Managemen's former chief risk manager also said Tulipomanía in the Netherlands in 1637 saw the price of the most expensive bulbs dropped by 20% in one week, but soon they recover and flower growing is business since then the most profitable agricultural land in Europe.

"In other famous balloons such as John Lowe's Mississippi, the Florida real estate boom in 1925, precious metals in the 1970s, biotech stocks in the 1980s, Internet stocks in the 1990s and Real Estate in the 2000s, investors who came close to the maximum levels lost a lot of money but the underlying assets eventually exceeded the maximum balloon prices, he said.


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