UAE’s Top Royal Shorts US Stocks On Recession Fears, Bitcoin’s Price In Danger?

Coingapestaff
May 10, 2023
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Crypto News: According to recent reports, an investment business managed by a prominent member of Abu Dhabi’s royal family has accumulated an extensive short position on certain US stocks worth billions of dollars. The wager comes in the midst of mounting concerns about the possibility of a recession that can exert pressure on international markets.

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Royal Group Bearish On US Stocks

According to a report published by Bloomberg, the multinational conglomerate helps to manage one of the most enormous family fortunes in the world through a huge network of subsidiaries. In addition, the investment firm initially intended to invest as much as $10 billion in equities and other assets located in the United States and Europe that had been battered by fears of a global recession.

Read More: Crypto Giant Galaxy Digital Moving Operations Off Shore Citing US Regulatory Headache

However, things have taken a sharp turn as the Royal Group has now adopted a more negative stance on US equities and moved most of its portfolio into short-term US Treasury bonds. Reports suggest that the company, which is chaired by the National Security Adviser of the United Arab Emirates — Sheikh Tahnoon bin Zayed Al Nahyan — is also increasing its investments in commodities and cryptocurrency.

The organization’s goal is to capitalize on the jittery market sentiment that has developed as a result of the failure of four US institutions and the growing likelihood of a slowdown in economic activity around the world. At press time, there was no clear information on the stocks or sectors Royal Group was betting against.

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Bitcoin’s Price In Danger?

The price of Bitcoin, with few exceptions, has generally mirrored the performance of the US stock market. Earlier, cryptocurrencies have been impacted by greater market turbulence, whether it was brought on by the COVID-induced market meltdown in March 2020 or the Black August in 2011.

However, one could argue that in recent times, the price of Bitcoin has behaved in a manner that is inverse to that of Wall Street. Bitcoin showed a positive reaction to the banking crisis that occurred in the United States, which resulted in the demise of many notable banking institutions like Silvergate, Signature & Silicon Valley. Moreover, the flagship cryptocurrency appeared to decouple itself from the overall market fall.

Now, whether or not the wider US equity market will have an impact on the price of Bitcoin depends on the key question — if there will even be a so-called recession in the first place. As things currently stand, Bitcoin’s price is exchanging hands at $28,116 with a market cap of $545 billion.

Also Read: Terra Classic (LUNC) Set To Undergo Core Upgrade, Price Soars Over 15%

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.