Equity vs Gold vs Bitcoin: Where should you invest amid US elections-led market volatility

Equity vs Gold vs Bitcoin: Where should you invest amid US elections-led market volatility

The US elections have already triggered volatility in the global market across all asset classes, but the actual impact would eventually depend on the outcome.

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If the Democrats return to power, the impact on the global economy, including India, is expected to be minimal as the status quo will continue. If the Democrats return to power, the impact on the global economy, including India, is expected to be minimal as the status quo will continue.
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Pawan Kumar Nahar
  • Nov 5, 2024,
  • Updated Nov 5, 2024 1:09 PM IST

The US will make its choice between the Republican Party's Donald Trump or Democratic Party's Kamala Harris as next president. The US elections have already triggered volatility in the global market across all asset classes, but the actual impact would eventually depend on the outcome.

Digital assets like Bitcoin and other crypto tokens have seen some volatility in the last few sessions. Bitcoin, the largest digital asset, has been trading sub $70,000 levels, while Ethereum is below the $2,500 mark. The total market capitalization of the cryptos fell over 2 per cent slipping to $2.25 trillion mark. However, analysts see institutional inflows in digital asset class post elections.

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This US election season has put the spotlight on crypto, with candidates from both parties supporting the growth of the crypto space. With more countries like the UAE and the European Union setting up clearer regulations, crypto is set to become a major asset class for investors, said Edul Patel, Co-founder & CEO at Mudrex.

"Given its globalised nature and its ability to hedge against inflation, digital assets like Bitcoin, Ethereum and others provide diversification to one’s portfolio. In times of geopolitical tension, crypto serves as a resilient alternative investment, similar to gold, maintaining stability while traditional markets react to uncertainties," he said.  

Bathini from Wealthmills does not consider cryptos as an investable asset class. "People make money in speculations but chances of losing money in misadventures is higher," he said.

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

The US will make its choice between the Republican Party's Donald Trump or Democratic Party's Kamala Harris as next president. The US elections have already triggered volatility in the global market across all asset classes, but the actual impact would eventually depend on the outcome.

Digital assets like Bitcoin and other crypto tokens have seen some volatility in the last few sessions. Bitcoin, the largest digital asset, has been trading sub $70,000 levels, while Ethereum is below the $2,500 mark. The total market capitalization of the cryptos fell over 2 per cent slipping to $2.25 trillion mark. However, analysts see institutional inflows in digital asset class post elections.

Advertisement

This US election season has put the spotlight on crypto, with candidates from both parties supporting the growth of the crypto space. With more countries like the UAE and the European Union setting up clearer regulations, crypto is set to become a major asset class for investors, said Edul Patel, Co-founder & CEO at Mudrex.

"Given its globalised nature and its ability to hedge against inflation, digital assets like Bitcoin, Ethereum and others provide diversification to one’s portfolio. In times of geopolitical tension, crypto serves as a resilient alternative investment, similar to gold, maintaining stability while traditional markets react to uncertainties," he said.  

Bathini from Wealthmills does not consider cryptos as an investable asset class. "People make money in speculations but chances of losing money in misadventures is higher," he said.

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
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