Archive March 2021

Hedge Fund Manager Ray Dalio Thinks Bitcoin Could Be Outlawed

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Billionaire investor and the world’s biggest hedge fund founder Ray Dalio said that the history of money has left hints that bitcoin could face being outlawed by the U.S. government, just as gold was in 1934.

“I think that it would be very likely that you will have it, under a certain set of circumstances outlawed, the way gold was outlawed,” he said on the podcast Influencers with Andy Serwer on Friday (March 26). Serwer is editor in chief for Yahoo! Finance.

The Bridgewater Associates founder and co-chief investment officer pointed to the 1934 Gold Reserve Act, which prohibited people from holding gold and mandated the transfer to the U.S. Treasury.

“Every country treasures its monopoly on controlling the supply and demand. They don’t want other monies to be operating or competing because things can get out of control. So I think it would be very likely that you will have it under a certain set of circumstances outlawed the way gold was outlawed,” Dalio said on the program.

Continue reading at pymnts.com

Why Bitcoin Is a Better Risk Bet Than a Stack of Penny Stocks

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Bitcoin is getting boring at a time when annualized 30-day volatility as of Thursday’s close has seen a sharp downward dip, in a March with its own type of (weather) volatility.

To emphasize the point, have a look at the chart above, which shows the volatility of bitcoin daily returns for the past month. To be fair, I’m employing a little chart crime here, starting the y axis at 40% in order to accentuate the drop between March 24-25, as all but the last days of February have disappeared from the 30-day look-back on the CoinDesk Bitcoin Price Index.

The boredom engendered by a tame month sparked a mild disagreement with “First Mover” show host Lawrence Lewitinn about penny stocks versus bitcoin. We were discussing the benefits of using indexes weighted either by price or by market cap. Price-weighted indexes can be more volatile because smaller-cap components can have a greater impact. I said a crypto index doesn’t need more volatility because crypto assets already have the volatility of penny stocks.

Continue reading at yahoo.com

Cristiano Ronaldo becomes the first player rewarded with cryptocurrency tokens

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Cristiano Ronaldo received 770 Fan Tokens $JUV ahead of Juventus' match against Benevento on Sunday as a way of marking his record-breaking goal milestone.

It's the first time a footballer has been rewarded with cryptocurrency, which is becoming prominent in terms of fan interaction in the game.

Fan Tokens $JUV allows Juventus fans to interact with their club and participate in various decisions through the Socios app.

Continue reading at marca.com

Amundi warns bitcoin in for ‘brutal’ price correction as regulation hits sector

cryptocurrency-regulation

Bitcoin and other cryptocurrencies could face a “brutal” price correction when regulators eventually weigh in on the sector, Europe’s largest asset manager Amundi has said.

The firm’s deputy chief investment officer Vincent Mortier said cryptocurrencies cannot be viewed as money or an asset worth investing in, in comments published as part of an upcoming report on the sector, seen by Financial News.

It is the first time Amundi – with €1.7tn of assets under management – has taken a public stance on cryptocurrencies.

“To date, [crypto] is neither a proven store of value, nor a recognised unit of account and even less a universal means of payment,” Mortier said. “Cryptocurrencies have no real economic underlying asset. As a result, there is no valuation model.”

Speaking to FN in a virtual interview, Mortier said the price of bitcoin above $50,000 was difficult to justify.

The cryptocurrency reached an all-time high of above $61,000 earlier this month, and was trading around $56,800 as of 12:20 GMT on 24 March.

Continue reading at fnlondon.com

Deutsche Bank Says 52% of Its Investors Expect Bitcoin Below $60K in 12 Months

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Deutsche Bank’s investor clients mostly see limited upside in bitcoin (BTC) this year and expect a decline towards $20,000-$40,000 in 12 months. Those are the highlights of a monthly market survey conducted by the German lender March 18-22 of 520 market professionals around the world.

Bitcoin has been trading in a sideways range over the past week after failing to sustain an all-time-high around $61,000 reached earlier in the month.

  • The 12-month BTC price forecast is more evenly distributed versus the three-month forecast, though a majority (52%) of respondents see prices under $60,000.
  • The most common predicted range for bitcoin prices in three months was between $60,000 and $80,000, expected by some 36% of respondents.
  • 69% of respondents think bitcoin is more likely to fall by half in 12 months, compared to 65% in February. BTC rallied by roughly 80% from February to March.
  • Only 23% of respondents said they had ever bought bitcoin for their personal investments. Just over 40% of respondents under 35 have bought bitcoin compared to just 13% of those over 55.

Continue reading at finance.yahoo.com

Bitcoin Traders Brace for Record $6B in Options to Expire Friday

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They call it “max pain” in the bitcoin options market: How to make one’s trading counterparty suffer the most. 

Although the largest cryptocurrency was changing hands Wednesday around $56,500, traders were handicapping the odds of a plunge to about $44,000 by Friday, when a record $6 billion of options contracts is set to expire. 

A drop to that price level would inflict “max pain” on buyers of options contracts, and it might be the most profitable price point for options sellers. It’s a remote risk, but not one to be discounted.

The max pain theory states that the market will gravitate toward the pain point while heading into the expiry. That’s because sellers – typically institutions or sophisticated traders with ample capital supply – often try to push the price toward the max pain point by buying or selling the asset on spot or futures markets. 

The bullish spin is that if bitcoin makes it through Friday without a major correction, a major overhang will be lifted.

Continue reading at nasdaq.com

Bitcoin Near $59K as Worries on Bond Yields Increase

Bitcoin’s price struggled to push higher after briefly touching $59,000 when markets opened in the U.S. on Friday.

Investors continued to monitor the potential fallout from U.S. Treasury bond yields, which some analysts warn could lead to a correction in risky assets from bitcoin to stocks.

The 10-year Treasury note yield went as high as 1.74% on Friday, the highest since January 2020, after the Federal Reserve signaled Wednesday it would keep loose monetary policy for the foreseeable future.

“If we continue to see the U.S. bond market questioning the Fed forward guidance, it could lead to more downside pressure in risk assets and start to weigh on bitcoin by extension,” Joel Kruger, cryptocurrency strategist at LMAX Digital, told CoinDesk. “We think this is a risk worth considering, especially with bitcoin already having moved so far and fast in 2021 thus far.”

Continue reading at finance.yahoo.com

Coinbase to Pay $6.5 Million to Settle CFTC Investigation Over Trading

Cryptocurrency-exchange operator Coinbase Inc. agreed Friday to pay $6.5 million to settle regulatory claims that it reported misleading information about its trading volumes.

Coinbase, which last year filed plans to go public, resolved the Commodity Futures Trading Commission’s investigation without admitting or denying the regulator’s claims. The outcome clears one cloud hanging over Coinbase as it prepares to become a public company through a direct listing on the Nasdaq Stock Market.

Coinbase issued a statement saying the investigation didn’t allege any harm to customers. “We proactively engaged with the CFTC throughout their investigation, and we believe that our conversations were constructive and contributed to an outcome that is satisfactory for both parties,” the company said.

The enforcement action shows how Wall Street regulators such as the CFTC, which oversees derivatives markets, have moved to police conduct in the new world of cryptocurrencies and digital assets.

Continue reading at wsj.com

The Gaming Industry – the helping hand in Bitcoin trading

bitcoin-casino

Gaming is one of the most popular hobbies of the 21st century. The gaming industry has seen to it that lots of games are produced that just add up on the pile of already existing games. In other words, gamers all over the world have plenty of games to choose from.

The industry keeps track of trends and makes sure to use technological advancements to advance itself. That’s how PCs and other gaming devices have become better. Even mobile phones evolved into smartphones and eventually into gaming phones which prompted the rise of the mobile gaming industry. Better systems means developers can take games to the next level as these systems can take them.

When it comes to trends, Bitcoin is the current trend that has already made a place for itself in the industry. The many benefits of its use have prompted several companies to accept it as a payment method. But Bitcoin has inspired developers to develop several kinds of games as well.

Continue reading at nairametrics.com

Why Bitcoin is now too important to ignore

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Earlier this week, the price of Bitcoin surged over $61,000, gaining more market dominance at the same time. While questions around its volatile price and potential to hedge inflation remain, experts like French economist, Marion Laboure concluded that Bitcoin is now “too important to ignore. Other than BTC’s trillion-dollar market cap, its “scope for a continued rise in prices,” play key roles in its growth. 

Even central banks and governments understand that “Bitcoin and other cryptocurrencies are here to stay,” Laboure argued. She stated governments will “start regulating” crypto-assets “late this year or early next year.”

The economist suggested Bitcoin fell short in some areas; she said that when it came to “transactions and tradability,” the crypto is “still limited.” More importantly, the researcher raised the question: 

…The real debate is whether rising valuations alone can be reason enough for bitcoin to evolve into an asset class, or whether its illiquidity is an obstacle.

Continue reading at ambcrypto.com