Asian Stock Market Profit Taking Is Positive For Bitcoin

As the Asian stocks continue their downwards descent, Bitcoin becomes all of the more appealing to consumers and investors alike. Earlier today, the Asian stocks retraced again, while the dollar has been surging. Traditional investment opportunities remain subject to massive volatility, and there is a lot of profit taking going on every single day.

To put this into perspective, there is still a lot of profit to be made when dealing with the Asian stock market. That being said, a lot of people are scalping profits at a very early stage, as they would rather take small profits compared to waiting weeks or months for a big payoff.

Traditional Investment Markets and Profit Taking

With the Nikkei losing 2.2% this week, things are looking a bit bleak in Japan. Then again, the country is seeing a surging interest in Bitcoin, which may indicate consumers and speculators are looking for alternative forms of investment. Or the could be hedging against an uncertain financial future.

China is seeing slightly better results, despite the CSI 300 index dipping today. With a 1.7% gain for the week, things are looking good. However, people need to take into account this cautious optimism hinges on whether or not the government rolls out a bigger stimulus package. Meeting economic growth targets is still the objective, albeit it is becoming harder to achieve.

Central bankers will come together for an annual meeting next week. The outcome of this event will hopefully provide the world with more information as to what we can expect moving forward. A lot of eyes will be on the Federal Reserve and their plans for the interest rates. Right now, a new increase looks all but impossible.

All of this turmoil is forcing the hand of consumers, corporations, and investors all over the world.  As profit scalping becomes more frequent, the risk versus reward ratio in traditional markets becomes less favourable. This may cause people to look for alternative investment strategies, and boost the demand for precious metals. But do not discount opportunities such as Bitcoin either, as it remains an attractive – albeit niche – speculation market.

Source: Reuters

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About JP Buntinx

JP is a freelance copywriter and SEO writer who is passionate about various topics. The majority of his work focuses on Bitcoin, blockchain, and financial technology. He is contributing to major news sites all over the world, including NewsBTC, The Merkle, Samsung Insights, and TransferGo.