Digital asset investors must be prepared to ride out market volatility

By OSL CEO Wayne Trench

Travel bans, event cancellations, celebrity infections, tanking crude oil prices and another emergency rate cut have all contributed to a heightened state of alarm plainly manifested in global markets recently.

Reactions and countermeasures to the COVID-19 pandemic continue to intensify and the oil-price war between Saudi Arabia and Russia is ongoing, creating further uncertainty for global investors. 

Hopes for a rebound in traditional markets sank at the end of last week as investors lost their nerve and stocks on Wall Street plummeted around 10% to a low reminiscent of 1987’s Black Monday. The fall was mirrored around the world, including in Hong Kong and Tokyo.

Digital assets were certainly not immune in the flight to safety. Bitcoin and Ethereum posted greater losses than those seen in traditional markets, resulting in the total market capitalization of all digital assets falling from $223 billion to $155 billion as of Friday March 13th. Volatility was also at extreme levels on Friday, with Bitcoin dropping to a low of around $3,800, only to rally back to $5,260 shortly afterwards.

Even in the best of times, clients expect service providers like us to respond quickly and accurately. Under the stresses of recent market conditions, these expectations are magnified even further. At OSL, whatever the conditions, we pride ourselves on robust risk and security controls and a consistent, high-quality trading experience. As a result, we were able to respond to our clients’ trading needs, continuing to provide a focused, secure and reliable service, bringing peace of mind during this volatile time.

Whilst we saw record trading volumes across our platform, OSL’s iRFQ product in particular saw a significant increase in activity and delivered our customers a consistent, quality trading experience throughout. It’s a fast, secure institutional-grade trading tool that allows traders to execute with confidence and without delay. There’s no queuing, no guessing; just click to trade.

As investors around the world consider their next move, our view is that once market volatility eases and the dust settles, digital assets, and Bitcoin in particular, will be seen as a strategic part of a diversified portfolio. This is particularly in light of the increasingly sophisticated investor base and the recent resumption of significant QE activity.  

Whatever the situation, OSL remains ready to support clients engaging in the digital asset markets by providing a safe, secure and transparent gateway to the asset class.

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