BTC: What flight to quality means.
You hear ‘flight to quality’ as a term on the news whenever markets fall.
For mainstream markets, it generally means gold, interest rates and blue chips perform better when the proverbial hits the fan.
It doesn’t mean they go up. It means there is less hurt than the ‘non-quality’ markets.
It’s happening now. BTC and ETH are the blue chips in the new frontier. That’s why you see their drop, at the time of writing, only a third of a quarter of many others.
With momentum, spreaders will hit this hard, but it’s not a safe spread trade like you might see at other times.
Use the ‘Compare’ function to see it play out. Compare your market to BTC or ETH and you’ll see the line drop. That means the blue chips are holding up better.
On a fast bounce, you’ll likely see the opposite. That’s ‘risk-off’ moving to ‘risk-on’.
You hear ‘flight to quality’ as a term on the news whenever markets fall.
For mainstream markets, it generally means gold, interest rates and blue chips perform better when the proverbial hits the fan.
It doesn’t mean they go up. It means there is less hurt than the ‘non-quality’ markets.
It’s happening now. BTC and ETH are the blue chips in the new frontier. That’s why you see their drop, at the time of writing, only a third of a quarter of many others.
With momentum, spreaders will hit this hard, but it’s not a safe spread trade like you might see at other times.
Use the ‘Compare’ function to see it play out. Compare your market to BTC or ETH and you’ll see the line drop. That means the blue chips are holding up better.
On a fast bounce, you’ll likely see the opposite. That’s ‘risk-off’ moving to ‘risk-on’.