Stocks Gain Half a Trillion in One Week, More Than the Combined Market Cap of All Cryptos

0

The combined market cap of all stocks has gained in one week nearly twice as much as the total value of all cryptos.

Global stocks have risen by around $500 billion in the past seven days, while the combined market cap of all cryptocurrencies and tokens stands at around $320 billion.

The global market cap of all stocks at above $81 trillion.

That suggests cryptos remain relatively small, with the global market cap of all stocks rising and falling by magnitudes more than the total value of all cryptocurrencies and tokens.

Moreover, certain individual stocks themselves are worth more than all digital currencies and tokens combined, with Facebook alone, despite its recent problems, standing at around half a trillion, considerably more than the combined market cap of all cryptos.

The volatility of stocks has further increased in recent weeks, with their global market cap wiping out some $10 trillion.

That’s less than the period during 2015-2016, when they dropped from above $70 trillion to $55 trillion, but their recent downwards correction has been the biggest since.

Something which shows crypto-volatility is in no way unique as it is found in even what one might consider the safest market, government debt, otherwise known as bonds.

They gained $180 billion in the past week, rising to a global $50 trillion and above, up some $10 trillion since December 2016.

Global bond markets at above $50 trillion

They usually have the backing of the state, but that’s a state which can print out any amount of unit of accounts. With post world war one Germany a prime example to show you can repay back all your debts through hyperinflation provided it is with paper money that is fully worthless.

Which means even bonds can be very risky. And risk usually doesn’t show itself slowly, but very, very, gradually. Until suddenly, almost overnight, what was $100 becomes $25.

It is true that happens more often in cryptos than in stocks or bonds, but then it is also true cryptos are not even 1% of the market cap of bonds or stocks.

In fact cryptos remain so small, even after the stupendous gains of last year, that the most boring investments of bonds rise by half their total market cap in one week, and the slightly more exciting stocks gain twice the combined value of all cryptos in just seven days.

 

Leave a Reply

100000
  Subscribe  
Notify of