With plastic monies gaining immense control over the traditional mode of transaction, both the developed and developing markets are taking an interest in the prospect of digital currencies. The last week was full of surprises for the new currency market with firstly sell-offs in equity, then higher risk bonds, and the upsurge created by Bitcoin.
Bitcoin created an uproar in the new currency market. Just reminiscing a few days back Bitcoin has strumbled down to 29% of its current value of $38 billion but emerged fresh with an increase to $8000 on Friday last week. On the other hand, CME Group Inc. is all set to provide investors the way to evade future prices on the world’s largest exchange on next month.
The week continued with one more state of upheaval when the tumult in the junk bond market became severe. The Deutsche Bank’s chief international economists had to face the question as to whether this grave situation can lead to a US recession. However, the US gauge of high-yield debt was later rescued by the buyers on the last Thursday.
Well, the week didn’t end there. Some good news was waiting for the financial market, and on Friday Moody’s Investors Service Sovereign credit rating for upgrading in India decided that policymakers have framed new methodologies to deal with India’s non-performing loans. In China too, the onshore market that had crashed down in 2015 has exuberated in one stock that has doubled itself over a year.