The impact of the collapse in the price of digital currency on the price of silver can be summarized as one level – risk sentiment, investment transfer.
The sharp drop in the price of encrypted digital currency will lead to panic in the financial investment market. When investors withdraw from the digital currency market, their demand is likely to be transferred to safe-haven assets. As a safe-haven asset that attracts global attention, silver has a high probability of a sharp rise.
As a result, the price of digital currency plummeted, while the price of silver rose sharply.
The impact of digital currency on silver prices is also reflected in the long-term investment process. When investing in the price of silver, if the digital currency falls across the board, the price of silver will not only be boosted by safe-haven demand, but will also be boosted by the US dollar index. As the collapse of digital currency stimulates panic in the financial market, the dollar is affected by a short-term shock.
In general, the impact of digital currency on the price of silver is mainly reflected in the level of demand transfer. Investors can pay close attention to the price fluctuations of digital currency in the global market. After China stopped the bitcoin trading platform, there may be a wave of regulation around the world. In the boom, the price of silver is expected to stop falling and rebound to a new high.