Bitcoin fell below $ 50,000 , before rebounding this morning. This follows exuberant trading yesterday, which saw crypto - currency hit a new high of $ 58,332 per diegoal of Asian hours.
How far will it go? According to David Lifchitz, CIO of the Parisian quantitative trading company ExoAlpha, a a correction of 15% is not out of the question . "$ 50,000 appears to be the first stop for a slight pullback, but a second step could bring it down to $ 40,000, while the $ 30,000 area appears to be the ultimate bottom if things go wrong in the short term " said Lifchitz.
It 's not just tea leaves, there are macroeconomic forces that could explain this recent price action. Omkar Godbole notes that US inflation-adjusted bond yields are rising , with real yield turning positive for the first time since June 2020. This supports a bullish case for the US dollar.icain - as investors reduce risk and put money in US Treasuries when yields rise - and a bearish case for bets like bitcoin and shares.
Speaking of, according to a new survey , 41% of United States. investors think stocks and crypto are just as risky . A JPMorgan analyst may not agree . In a recent investor note, the banker wrote that market liquidity in hedges like bitcoin and 'gold is "much lower" than in equities, meaning that "even small flows can have a big impact on prices.
This morning on First Mover, Muneeb Ali dug cultural differences between traditional tech industry and crypto. The prevailing attitude in Silicon Valley, he argued, is a constant iteration, perhaps best exemplified by the mantra "move fast and break things ”.
Bitcoin is different. "Bitcoin actually does not change. Bitcoin is valuable because it is durable, because it is difficult to change," Ali said. Look at the full interview here .
Putting the fun in non-fungibles
NFTs are getting ridiculous. Yesterday a batch of CryptoPunks, sometimes called the “rookie card” d 'digital collectibles, sold for approx $ 1 million in ETH . Apparently only one buyer made the purchase. This follows reports from Friday that a tokenized version of "Nyan Cat ", a classic internet meme, sold for 300 ETH ($ 527,000) . Chris Torres, creator of the meme and NFT, said the sale “opened the door to a whole new meme economy.” It sounds odd, but here is " big CryptoPunk thesis.
Opinions from regulators
Former Bank of England Governor Mark Carney has joined Stripe as a member of the board. Carney was defender of the digital economy and of a possible cryptographic replacement for the US dollar, which he sees as a victim of a multipolar world. Carney is the only one among regulators who does not completely disparage Libra (maintenant Diem) when it was first announced - even saying that a private "synthetic" currency could become the world reserve.
MYbank and WeBank - institutions backed by Chinese giants Ant Group and Tencent, respectively - are said to be ready to join the test ongoing digital yuan . The digital wallets of the two private banks will be added to the People's Bank of China digital yuan app alongside those of the six public banks already participating. If and when it is launched, the digital yuan would be the first national digital currency of a large country. Meanwhile, the central bank of Morocco would be research on CBDCs.
The North American market for bitcoin exchange-traded funds (ETF) was launched last week, with two products increasingly approved and quickly exceeding expectations. The first one including brought in $ 421.8 million in assets in just two trading days, including over 6,000 BTC. There are now many suggestions for FNB competing bitcoin , including one from Canadian asset manager Global Asset Management and investment bank Galaxy Digital.
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