Survey: Tech shares and cryptocurrencies are crushed together because the Fed reduces the balance sheet
Survey: Tech shares and cryptocurrencies are crushed together because the Fed reduces the balance sheet
- Almost half of the survey participants believe that technology stocks and cryptos remain most susceptible to the quantitative tightening of the Fed
- About two thirds of the survey participants say that the bull run at treasuries, which lasts four decades, has ended
Since the US Federal Reserve has started to reduce the stocks of almost $ 9 trillion, technology shares and cryptocurrencies are made hard according to an MLIV pulse survey reported by Bloomberg.
About 47 % of the respondents stated that technology shares and cryptos are most susceptible to quantitative tightening, while only 7 % of mortgage securities chose securities - which investors consider less susceptible to the new procedure of the FED.
The survey carried out from May 31 to June 3 included 687 answers - from private investors to market strategists.
The survey showed that retailers who were active on the market during the financial crisis in 2008 are concerned about the effects of the Fed's balance sheet cutting on junk bonds, and 72 % more believe that the four decades of bull run at treasuries is over-while new retailers are concentrating on the effects on technology stocks and cryptos, and only 55 % believe that treasuries believe in a baisse head.
But Jack Farley, macroanalyst and moderator of the Forward Guidance Podcast from Blockworks, is not convinced that a quantitative tightening is bad news for crypto.
"I don't think the story supports the view that the reduction in the Fed balance is necessarily bad for crypto," Farley told Blockworks in April. "The last (and only) case of a quantitative tightening by the FED began in October 2017, and Bitcoin rose from then on 340 % to its climax in December 2017."
About 61 % of the respondents stated that the level in which the end money set reaches peak values was more important than the amount that the balance is shrinking, according to the survey.
In March, the Fed increased interest rates by a quarter percent point and said that further interest rate increases could take place in the near future. Economic advisory board of the American Bankers Association
. . The article Survey: Tech Stocks and Cryptocurrencies Cudgeled As Fed Reduction Balance Sheet is not a financial advice.