Notes

Global Market Review In 2021: U.S. Stocks Are Soaring, Cryptocurrencies Are The Crazies

<p>In the second year of the COVID-19 outbreak, the performance of global financial markets was almost as dramatic as last year.</p>
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<p>Generally speaking, stock bulls have been firmly in the dominance, retail trading frenzy shook Wall Street, soaring energy and food prices pushed up inflation and made the bond market turbulent.</p>
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<p>In terms of currencies, the Turkish lira has plummeted, while cryptocurrencies such as Bitcoin have skyrocketGame Station (GME.US) rose nearly 2000% in January, and after giving up a lot of gains, the stock is still up 700% year-to-date. This Website “MEME” stock, AMC Cinemas (AMC.US), has risen by more than 1,000% so far this year, down from the 3000% increase in early June.</p>
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<p>Tesla (TSLA.US), a leading company in the electric vehicle industry, recovered from the trough at the beginning of the year. But other innovation-related funds or stocks, such as Ark Innovation Fund ARKK, some solar stocks, biotech stocks and special purpose acquisition companies (SPAC), have fallen by 20%-30%.</p>
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<p>Commodity prices rise.</p>
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<p>As large economies gradually got rid of the pandemic and moved towards recovery, commodity prices rose sharply. Oil and natural gas prices rose by 40% and 50%, respectively, the highest increase in five years, making prices much higher than their pre-epidemic levels.</p>
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<p>The price of precious metal gold has fallen, but the agricultural product market has boomed. The price of corn has risen by a quarter, the price of sugar has risen by 20%, and2021 is the craziest year for cryptocurrency so far.The price of Bitcoin was once close to 70,000 US dollars. Compared with last year’s 300% increase, Bitcoin’s nearly 70% increase may seem insignificant, but this was achieved when regulators suppressed Bitcoin in May, when the price of Bitcoin almost fell by half.Bitcoin staged a “roller coaster” market in 2021.Dogecoin is a digital token launched in 2013 and a derivative of Bitcoin. In May of this year, the price of Dogecoin soared by 12,000% from the beginning of the year, setting a record high, but fell by nearly 80% in mid-December.Non-fungible tokens (NFT) have also achieved explosive growth. In May of this year, a virtual digital work by American artist Beeple was sold for nearly $70 million at Christie’s auction, making it one of the three most expensive works of living artists at auction.</p>
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<p>The green sector is still the focus.</p>
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<p>This year, the green sector is still the focus of market attention. The scale of green bond issuance this year will reach a new high, approaching US$500 billion. The ESG version of MSCI’s global flagship stock index (miwd00002pus) rose more than 2% higher than the standard version (miwd00000pus).</p>
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<p>In addition, from the perspective of the issuing department, financial institutions issued a record $180 billion in green bonds this year, surpassing other private sectors. However, some analysts warned that due to the application of financial tools such as debt repackaging and restructuring, the scale of green bonds issued by financial institutions is much larger than that of green projects in the real world.</p>
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<p>Green bonds issued by global financial institutions have more than doubled this year</p>
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<p>The Turkish currency Lira (Lira) has depreciated nearly 40% since September, making people live in dire straits, and even having difficulty buying daily necessities under high inflation. According to British media reports, the currency depreciation has stimulated local people to turn to virtual currencies such as Bitcoin and USDT to seek “preservation”.&nbsp;</p>
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<p>Since September, Turkish President Recep Tayyip Erdoğan ordered the central bank to cut interest rates continuously and lower the base interest rate. He thought it would be able to curb severe inflation, but things went counterproductive. After each interest rate cut, the lira plummeted. On December 20, Erdogan made another rescue effort, announcing that the government would compensate the depositors for the losses suffered by the devaluation of the lira. This move eventually caused the lira to rebound and regain some lost ground.</p>
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<img width="338" src="https://icdn6.digitaltrends.com/image/antminers701-1000x667.jpg">
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<p>During the period when the lira currency fluctuated sharply, Turkish factories were facing a crisis of bankruptcy one after another. The people were miserable. Under high inflation, even wanting to buy meat became a problem. On the other hand, European tourists poured in and took the opportunity to buy bargains.</p>
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<p>According to a Reuters report on December 21, with the devaluation of the currency driving Turks to seek other ways to protect their assets, cryptocurrency trading has become popular, and Turkey’s cryptocurrency trading volume has risen sharply to more than 1 million daily.</p>
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