Digital currencies continue to strengthen their positions on Monday, January 8th, despite the decline in Asian stock markets.
Stocks in Hong Kong and China started the week with poor performance, with the Hang Seng index falling by 3.5%, along with a drop in business activity indicators in South Korea and Australia.
Heavy losses were experienced by Tencent Holdings Ltd., Alibaba Group Holdings Ltd., and Meituan, according to Bloomberg. In response to this, investors preferred to invest in the US dollar and digital currencies.
Nomura analysts believe that measures taken by the Chinese authorities to support the economy have not improved the overall sentiment among investors yet.
Investors are currently afraid to buy shares of technology companies and prefer to keep their funds in treasury bonds, precious metals, and cryptocurrencies. The yield on Australian bonds increased by two basis points on Monday, reaching 4.16%.
At the time of writing this review, the price of Bitcoin (BTC) was $44,022. Ethereum (ETH) rose to $2,232, and Solana (SOL) gained 2%, reaching $90.69.
Avalanche (AVAX) and Dogecoin (DOGE) also showed growth of 0.5%, reaching $33.17 and $0.078, respectively.
Standard Chartered bank strategist Eric Robertson believes that the Federal Reserve System may adjust the level of interest rates at the upcoming meeting.
However, it is still too early to talk about radical changes in the markets, so significant fluctuations should not be expected.