Issue link: https://maltatoday.uberflip.com/i/1454943
17.2.2022 6 MARKETS Symbol Volume Value Trades High Low Open Closing Change Code Traded Traded Trades Price Price Price Price EQUITIES BOV 10,277 8,310.51 3 0.810 0.805 0.805 0.810 0.010 MDI 24 9.74 1 0.406 0.406 0.406 0.406 -0.024 MIA 467 2,745.70 2 5.900 5.850 5.900 5.850 -0.150 PG 10,099 22,419.78 1 2.220 2.220 2.220 2.220 0.000 SFC 915 7,776.25 3 8.500 8.250 8.250 8.500 0.000 TML 3,750 2,627.50 2 0.710 0.700 0.700 0.710 -0.040 GOVERNMENT STOCKS G30A 5,000 6,650.00 1 133.000 133.000 133.000 133.000 -0.720 G32A 100,000 132,040.00 1 132.040 132.040 132.040 132.040 -0.640 G40A 30,000 35,511.00 2 118.370 118.370 118.370 118.370 -0.140 CORPORATE BONDS 1923A 1,700 1,742.50 1 102.500 102.500 102.500 102.500 -1.000 AX24A 1,700 1,742.50 1 102.500 102.500 102.500 102.500 0.000 AX32A 20,000 20,214.00 3 101.490 100.930 100.930 101.490 0.540 BV30A 25,000 25,025.00 1 100.100 100.100 100.100 100.100 -3.400 CB33A 11,000 11,124.50 2 101.250 100.990 100.990 101.250 0.260 DF26A 5,000 5,000.00 1 100.000 100.000 100.000 100.000 0.050 GH27A 3,100 3,131.00 5 101.000 101.000 101.000 101.000 -1.230 GP23A 10,000 9,802.20 2 98.050 98.010 98.050 98.010 -0.980 HP25A 2,200 2,255.00 1 102.500 102.500 102.500 102.500 1.000 IH26A 1,400 1,418.20 1 101.300 101.300 101.300 101.300 -0.950 IH31A 25,000 24,973.83 4 99.900 99.850 99.850 99.900 0.050 MM26A 20,000 20,400.00 1 102.000 102.000 102.000 102.000 0.000 MY27A 10,000 10,172.50 2 101.960 101.490 101.490 101.960 0.960 PC26A 3,000 3,015.00 1 100.500 100.500 100.500 100.500 0.500 PZ26A 1,155,000 1,195,425.00 4 103.500 103.500 103.500 103.500 -1.000 SA32A 30,000 31,200.00 2 104.000 104.000 104.000 104.000 1.000 SM31A 33,000 34,217.00 4 104.000 103.490 103.490 104.000 2.500 SP29A 3,000 3,074.70 1 102.490 102.490 102.490 102.490 0.000 TG26A 23,000 23,000.00 2 100.000 100.000 100.000 100.000 0.000 VH24A 25,000 25,125.40 5 100.930 100.250 100.250 100.500 0.500 Malta Stock Exchange Reguated Main Market Trading Date: 16 February 2022 Bitcoin: can anything stop the crash? BITCOIN (CRYPTO:BTC) has spent much of this year in a pro- nounced crash. As of this writing, it was down 22% for the year and still falling. Earlier in the year, Bitcoin fell in tandem with tech stocks, with which it has been correlated re- cently. It appears this phenomenon of BTC-NASDAQ correlation is still going on. In this article I will explore the recent drawdown in Bitcoin and whether it is likely to continue. Why Bitcoin is crashing Lately, Bitcoin's price has been strongly correlated with the pric- es of tech stocks. BTC spent most of this year falling along with the NASDAQ, which is tumbling on interest rate worries. It's hard to say why Bitcoin and the NASDAQ have been so strongly correlated lately. In the early days, Bitcoin was not particularly correlated with any other asset, but, more recently, it has been trading similarly to tech stocks. is could be due to insti- tutional investors now getting into BTC and putting it in "growth"/tech portfolios. If that's what happening, then we should expect Bitcoin to fall for as long as tech stocks fall. Apart from that, there's not really much going on that would explain Bitcoin's crash. ere hasn't been much news on the regulatory front lately, and various jurisdictions are still in the process of making BTC legal tender. Some countries, like El Salvador, have already done so. So, there hasn't really been a whole lot of bad news on the "fundamen- tals" level. It could be that some short-term-oriented traders are simply taking profit on Bitcoin after having bought it cheap years ago. At today's prices, Bitcoin bought in 2019 can still be sold at a handsome profit. Stopping it from crashing If Bitcoin is crashing because of growth portfolio managers sell- ing — as I suspect to be the case — then a few possible things could eventually end the crash. One would be interest rates sta- bilizing. Higher interest rates in- crease the "risk-free" rate of return and make risky growth assets less desirable. e U.S. Federal Reserve is cur- rently in the midst of a year-long interest rate-hiking spree. e markets aren't sure what to make of it and are sending stocks lower. When interest rates finally stabilize after the "six or seven" rate hikes coming this year, then maybe tech and things like Bitcoin will find a bottom. Another factor that might stop the Bitcoin crash would be another country adopting it as legal tender. When El Salvador introduced BTC as legal tender, Fortune 500 com- panies in the country immediately started accepting it for payments. If another country makes the same move El Salvador did, then perhaps that would generate some extra de- mand that would take BTC higher. Tough time It's a tough time for Bitcoin right now, but history shows that BTC has a remarkable ability to bounce back from its drawdowns. Over the years, Bitcoin has seen many dips — it has usually bounced back. Today, we've got major insti- tutional investors buying Bitcoin, and even pure-play Bitcoin funds like Purpose Bitcoin ETF. ese funds generate a signifi- cant amount of buying (in other words demand). ey also pro- vide an additional reason for in- vestors to buy Bitcoin, as they can be tax-sheltered, which mitigates capital gains tax (one big drawback Bitcoin faces). Does all this institu- tional adoption mean Bitcoin will go up? No. But it does argue that the coin will not evaporate into thin air overnight. Bitcoin is crashing, as are Bitcoin funds like Purpose Bitcoin ETF BOV ORD SHARES 3.75% MCY SEC