September proved to be a disappointing month for financial assets. Unsurprisingly, much of this performance is linked to the economic and political pressure created by COVID-19.
In this article, we are going to review last month’s events and look at what is predicted for October. From the risk of a second wave of a rolling bear market to President Trump’s diagnosis and recovery, we will examine what the outlook for October holds for crypto and provide insight into what’s next for PumaPay this season.
September and rising political temperatures
Financial assets performed poorly in September. Gold and silver depreciated in value by about 4% and 16% respectively. Digital currencies also saw a decline in prices with Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) going down by approximately 4%, 6%, and 8%.
Research shows that the financial market’s general weakness was a strong contributor to the regrettable performance of digital currencies. Much of this is due to the political uncertainty created by talks of a second wave of COVID-19.
Further, in the wake of heightened risk, investors exhibited a renewed interest in currencies which strengthened the US dollar following months of declining value. This proved to be unfortunate for digital currencies as a stronger dollar typically has a negative effect on the price of dollar-dominated assets such as cryptos.
October’s Outlook and the recovery of President Trump
The outlook for crypto in October currently stands in somewhat of a contrast to last month.
Entering the new month, experts initially claimed that with the threat of a second wave of COVID-19 imminent, we would see a “second wave of a rolling bear market” as wealthy investors look to sell off their stocks. Additional support for this belief may have been rooted in the predicted market volatility due to election uncertainty sparked by Trump’s previous diagnosis.
So . . . what does this mean for the crypto market?
Well, the uncertainty brought about by talks of a second wave may be a good thing for crypto, as companies- recognizing their value as deflation assets- are beginning to use cryptocurrencies, such as Bitcoin, as primary treasury reserve assets.
Notably, however, President Trump’s recovery is proving to have a positive impact on markets. The cause of this sudden spike and the subsequent impact of this on the crypto market is still unclear.
Some respite from this uncertainty may be seen in the support received from the Federal Reserve and Congress last month.
With interest rates now set by Jerome Powell to be low for a minimum of three more years- the dollar may weaken. This will serve to boost inflation and may increase crypto usage as users- and now companies, are turning to cryptocurrency as a means of hedging against inflation.
Congress is also yet to pass a stimulus package– following his recovery, President Trump stated that he plans to delay this further until his potential win. Should the stimulus be delayed, this may slow growth further which could stimulate cryptocurrency usage.
What to expect from PumaPay
Despite the uncertainty of our market, PumaPay continues working behind the scenes to improve our technology and provide the best crypto solution possible, for both businesses and their end clients.
After listening to our users, we have worked hard to bring new features to our mobile wallet that will drastically enhance user experience, such as the buy crypto service. Thanks to this newly launched feature, PumaPay wallet users can buy cryptocurrencies directly from the wallet with a credit or debit card, making paying in crypto that much easier.
Our developments are not going to stop here. As we enter fall, our users should keep a look out as we have got plenty more planned!
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