“Cash is king” ,Fed takes action
The financial market collapsed again on Thursday. The Dow fell more than 2350 points, or 9.99%, the worst day since the stock market crash in 1987 (Black Monday), reflecting the pessimism on Wall Street.
Countries over the world continue to do everything possible to assure the market. The Federal Reserve announced last night that it will inject 1.5 trillion US dollars of the short-term funds into the market. However, the measures is not likely to boost investor confidence that much.
Today’s Asian session, Gold price and Bitcoin were the picks. Selling pressure is still strong in gold market, making that gold price fell to about $1551 level. Bitcoin fell to around $4000, a new low since March of the last year, and within 24 hours, it has fallen by more than 40%.
Market participants believe that the collapse of the market caused the “domino effect”. Investors, funds and traders are all thinking of “cash is king” and just want to liquidize the risky asset holding. Many analysts are also much more pessimistic. If the epidemic problem continues to be unresolved, the state of financial chaos will not improve significantly.