Crypto markets have corrected today but stock markets continue to surge despite mounting warnings of economic despair ahead. When the bubble bursts will investors turn to digital assets as a safe haven?
Stocks Up Amid Virus Fears, Crypto Dumps
The current scenario on Wall Street is deceptively bullish in a country where red lights are flashing all over the economic board. Add to that the escalating fears over the Covid-19 (Coronavirus) outbreak and the slowing down of Asian economies, and it is a recipe for danger ahead.
According to reports, Goldman Sachs sounded the alarm to clients this week about a possible correction in the stock markets. Strategist Peter Oppenheimer wrote;
“We believe the greater risk is that the impact of the coronavirus on earnings may well be underestimated in current stock prices, suggesting that the risks of a correction are high,”
Major US stock indexes have taken the influenza outbreak news in their stride and on Wednesday the S&P 500 and Nasdaq Composite jumped to record highs.
Speculative stocks like electric-vehicle maker Tesla, and space tourism firm Virgin Galactic Holdings, also surged. So far this month Virgin stock is up 118% this month while Tesla has gained over 41% in February alone.
Oppenheimer added that a sustained bear market does not look likely but a near-term correction is looking much more probable.
Gold prices are also hitting seven year highs and bitcoin is up 34% this year despite its thousand dollar dump yesterday.
Crypto industry insider Ran NeuNer also exercised caution adding that there are a number of factors that could burst the bubble in addition to the Covid-19 outbreak.
Just keep telling yourself it’s going to be ok & markets will keep going up,don’t worry about;-Corona Virus-China printing crazy amounts of money to support markets.-USA printing unprecedented amounts of money-a possibility that Bernie is next -0% interest worldwide
— Ran NeuNer (@cryptomanran) February 20, 2020
Central banks of the world’s two largest economies have both been injecting liquidity into their failing banking systems by printing more money.
The US Federal Reserve has doled out tens of billions to calm the short-term lending markets after they went haywire in September. According to Bloomberg the Treasury has initiatives to ensure it always has enough cash to pay its bills as the deficit soars to a trillion dollars and this could make things difficult for the central bank.
China is having its own problems with cities housing up to 50 million people under lockdown and citizens being shunned across the world as fears of a pandemic intensify. Asian economies are feeling the pinch also and those heavily dependent on tourism such as Thailand are getting battered.
The crypto and bitcoin safe haven narrative has never been stronger than in 2020 and when the stock bubble finally bursts those dollars could flood into crypto markets.
Will crypto markets continue to climb this year? Add your thoughts below. origin »
US economic reports like ISM PMIs and nonfarm payrolls will shape investor confidence, potentially driving crypto price volatility.
The post 3 US Economic Events That Could Impact Crypto Market This Week appeared first on BeInCrypto.
The Turkish crypto sector has stayed afloat despite the country’s debilitating economic situation and a bleak bear market that crushed the global digital asset industry for most of last year. The negative economic trend has not stopped some crypto firms…
Regulation The authority of the Filipino government-owned economic zone is drafting regulations for cryptocurrencies and planning to limit the number of licenses it issues to 25. Japan Confirms Entrance Into the Crypto Space Drafting Crypto Regulations Philippines’ Cagayan Economic Zone Authority (CEZA) is “crafting rules to safeguard cryptocurrency investors,” according to the Philippine News Agency,
The authority of the Filipino government-owned economic zone is drafting regulations for cryptocurrencies and planning to limit the number of licenses it issues to 25. Other rules include the requirement for each crypto exchange to invest at least US$1 million within 2 years.
July 3rd marks the day when cryptocurrencies’ fate in India shall be decided. Things seem positive at this point with Subash Chandra Garg, Secretary, Department of Economic Affairs stating that they are developing a template which they think might be in the “best interest of our country”.
El-Erian Says He Would Buy Bitcoin If It Falls Below $5,000 Mohammed El-Erian is a chief economic advisor at Allianz. He recently revealed that he would be willing to purchase the bitcoin if its price falls below $5000.
Those companies located on the European Economic Area (EEA) will now be able to process their business transactions and operations through SolarisBank, a German institution that is fully licensed in the country.
Economic researchers at the Kiel Institute for the World Economy have identified digital currencies issued by a central bank as an opportunity for a more stable financial system, while at the same time rejecting cryptocurrencies, Cointelegraph auf Deutsch reports today, June 27.
Economic researchers at the Kiel Institute for the World Economy report that central bank digital currencies could provide stability, and are different from crypto, which is too volatile
The Federal Reserve Economic Data (FRED) database, a governmental database, is reported to have added four cryptocurrencies to it. FRED Introduces Coinbase Data to Its Database On June 19th, a FRED publication noted that cryptocurrency data compiled from Coinbase, with data originating from 2014 to the current day, will be added to the U.
The trend of ‘central banks’ talking about cryptocurrencies is warming up once more, with The Reserve Bank of Australia (RBA) and The Reserve Bank of New Zealand (RBNZ) weighing in on the debate.
The pair have moved to debunk rumours that they are investigating in establishing their own central bank digital currency, on the basis that they believe such a project would inevitably damage their current banking system.
As market infrastructure improves security tokens will replace utility tokens as the standard for crypto issuance as investors realize they offer a better economic incentive.
Today, Dash, the top digital currency for payments, in collaboration with Frame 48, a creative collective specializing in film and commercial production, has announced the launch of Starting From Scratch, a documentary centered on how blockchain technology and digital currency can help improve the chaotic economic environment in Zimbabwe. The documentary focuses specifically on Kuvacash, […]
Johann N. Schneider-Ammann, the Head of the Federal Department of Economic Affairs, Education and Research of Switzerland, affirmed his belief that blockchain technology is here to stay. Speaking at the Crypto Valley Conference in Zug on June 21, Schneider-Ammann addressed the attendees, quoting Mikhail Gorbachev’s “Life punishes those who come late.
The Bank for International Settlements’ (BIS) economic adviser and head of research Hyun Song Shin has said that cryptocurrencies should be treated the same as stocks and bonds, Business Times reported June 25.
Johann N. Schneider-Ammann, the head of Switzerland’s Department of Economic Affairs, has said that blockchain technology will undoubtedly penetrate the entire economy of Switzerland and make a global impact that is as big as that of the internet.
This week, leading South Korean crypto exchange Bithumb experienced a major hack, while Mt Gox, the most notorious exchange to be hacked in bitcoin history, is also back in the news.
This week the Federal Reserve Bank of St. Louis added cryptocurrency to their Federal Reserve Economic Data (FRED) database. It’s a seemingly small gesture, but one that signals to most observers crypto’s maturation, at least in the eyes of arguably the most important central banking institution in the world.
The Federal Reserve Bank of St. Louis will now be tracking the prices of four cryptocurrencies on their research database, according to a June 19 post on the bank’s website. The database, called the Federal Reserve Economic Data (FRED), will now include the prices of Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Litecoin (LTC) from
Bitcoin is less volatile than its cryptocurrency cousins, according to research that looked at five crypto assets from 2013. Bitcoin Trumps the Rest In February, the American Institute for Economic Research (AIER) compared the volatility of Bitcoin to traditional fiat currencies.
The St. Louis division of the U. S. Federal Reserve Bank is now tracking the prices of four cryptocurrencies in its research database. According to an announcement on Tuesday, Federal Reserve Economic Data (FRED), an extensive database maintained by the central bank’s St.
Earlier this week, the Bank of International Settlements (BIS) in Switzerland issued a new document as part of its annual economic report that warns citizens of the dangers of digital currencies.
With China to its west and Japan to its east, South Korea is surrounded by economic giants, but nonetheless remains a pivotal influence on the global cryptocurrency markets — for reasons that are not immediately apparent to most external observers
Goldman Sachs CEO Lloyd Blankfein reiterated his positive stance on cryptocurrencies in an interview with Bloomberg at the Economic Club of New York, June 19. Addressing the evolution of money, Blankfein pointed out the common features between paper money and crypto, apparently implying that they both do not have intrinsic value. But based on everything
Crypto market gains $16 billion today as economic fears over an imminent trade war between global superpowers US and China, drives investors towards decentralized assets.
In an informal statement made at Yahoo Finance’s All Market Summit: Crypto, William Hinman, the United States Securities and Exchange Commission (SEC)’s director of corporate finance, indicated that the regulatory agency has no plans to deem ether a security.
Canada’s Quebec province has announced that it will be suspending all approvals for new digital currency-mining projects so officials can consider deeper restrictions and potential energy price hikes.
Bitcoin traded above $79,000 as Asian markets opened to chaos. Hong Kong’s Hang Seng Index fell over 8%, Shanghai down 7%, and Taipei down 9%. Major tech stocks like Alibaba and TSMC were among the hardest hit.
Bitcoin price dropped to its lowest level since mid-July with a dip to near $62k on August 1. Stocks also plummeted as investors reacted to latest economic data and geopolitical tensions in the Middle East.
JP Morgan Coin, or JPM Coin, is a digital token for institutional investors, introduced by JPMorgan Chase. This coin aims to streamline and enhance the efficiency of financial transactions within the institutional sector.
Fed is expected to announce a 0. 25% rate hike after its two-day meeting on Wednesday. Stocks and cyptocurrencies have traded largely flat or lower amid investor anxiety over next moves by the central bank.
Ethereum (ETH) is trading higher today as the crypto market cap bounces to $1. 27 trillion. ETH price rose to $2,008 while Bitcoin (BTC) price climbed to $29,800 looks to end the week stronger. Gains for cryptocurrencies came as US equities ended the week higher, with regional bank stocks pummeled earlier in the week rebounding.
Bitcoin retested the $25,000 area, while S&P 500 had gained about 1% after plunging on ECB interest rate hike news. The ECB on Thursday surprised with a 50 basis point rate hike. Reports that JPMorgan and Morgan Stanley are looking to help First Republic Bank buoyed stocks.
Bitcoin price fell slightly to retest support near $23,250 on Friday. The top cryptocurrency’s price action mirrored early trades on Wall Street as the market reacted to US economic data. The US added 517,000 jobs, against an estimated 188,000 and unemployment fell to 53-year low of 3.
