The Digital Money Market Amid Global Economic Turmoil

In past economic crises, the issues were usually confined to the economic domain, and the solutions were primarily approached from an economic perspective, such as interest rate cuts and monetary easing. However, the current economic crisis is unique; it not only involves the economic aspect but is also closely related to global public health events.

The uniqueness of this crisis lies in humanity's limited understanding of the new virus. The virus's long incubation period, high transmissibility, and severe harmfulness make it a highly challenging threat. Many official agencies in various countries and regions initially underestimated the severity of the outbreak, and this attitude also affected the market's response.

Against this backdrop, some governments and central banks have taken unprecedented measures. For example, a certain country's central bank has lowered interest rates to near-zero levels and launched large-scale stimulus plans. Although this approach aims to stabilize the market, it may also raise concerns among investors as it implies the severity of the economic situation.

The discussion about whether Bitcoin is a safe-haven asset has heated up again. Although Bitcoin was once seen as "digital gold," its performance during this crisis has resembled that of a risk asset. The price of Bitcoin has shown a high correlation with traditional risk assets such as oil and stock indices, while its correlation with gold has been relatively low.

The reasons Bitcoin is considered to have safe-haven properties include its fixed supply cap, decentralized nature, and portability in special circumstances. However, there is a gap between the market's perception of Bitcoin's safe-haven properties and its actual performance. Under normal market conditions, this perception may drive prices up, but during severe market turmoil, Bitcoin's performance may not meet expectations.

It is worth noting that among mainstream Digital Money, a certain stablecoin has performed exceptionally well, with its price even increasing. This phenomenon reflects the demand for stable assets from investors during uncertain times. The issuer of this stablecoin has taken measures such as issuing more to meet market demand, although this practice has also sparked discussions about transparency.

For investors, it is important to recognize that Bitcoin is currently more like a risk asset rather than a traditional safe-haven tool. In the current economic environment, investment strategies may need to be adjusted accordingly. Whether adopting value investing or speculative trading, the key is to fully understand the risks and make rational decisions.

Economic crises often provide individuals with opportunities to change their destinies, but they also come with significant risks. Investors should proceed with caution, fully assess their risk tolerance, and develop appropriate investment strategies.