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Bitcoin bull run shows signs of wear as crypto investors eye other coins; Omicron, Fed taper loom – Yahoo Finance

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The volatile but never boring market for Bitcoin (BTC) has been whipsawed in recent days, as investors ponder whether there are better returns to be had in other cryptocurrencies, even as a new COVID-19 variant and the Federal Reserve's policy outlook shake up the landscape.
With news of the Omicron strain of COVID-19 unsettling investors, Bitcoin shed over 2% on Tuesday as Fed Chairman Jerome Powell dropped several hints that the central bank is growing more attentive to inflationary risks, and may even accelerate its plans to pull back on stimulative bond purchases.
In theory, the rise of a new variant would prompt the Fed to err on the side of more stimulus, which should benefit cryptocurrencies. Still, Bitcoin sold off sharply along with other risk assets last week, and has yet to challenge its record high near $68,000 set earlier this month, off by more than 20% since hitting that peak.
To be certain, Bitcoin is still firmly entrenched in bull market territory. However, other crypto assets, some notably smaller and higher-risk, are seeing growing investment flows, and may be drawing money away from Bitcoin holdings.
Jon Wolfenbarger, a veteran equities analyst, told Yahoo Finance this week that he's using the 250 day-moving average (DMA) to judge whether crypto and other assets might begin long term turns for the worse. 
While stocks, bonds and commodities still traded above their 250 DMAs on Friday, Wolfenbarger cautioned that "there has been enough damage done recently to tell us that we need to be very vigilant for continued weakness that could trip bear market signal," even if the larger uptrend remains intact, he said. 
During the downturn, notable Bitcoin whales like El Salvador, the largest nation state holder of BTC, which is planning to issue sovereign BTC bonds; and MicroStrategy, the largest publicly listed U.S. company, both used the recent correction as a buying opportunity. 
'Further down the risk-curve'
A recent trend indicates more investors are hunting for crypto trading opportunities outside Bitcoin.
Ether (ETH) — a major “Web 3.0” contender integral to the boom in nonfungible tokens (NFTs), decentralized finance and the Metaverse — has logged gains higher than BTC, roughly doubling its performance over the last week. 
Meanwhile, higher risk meme-coins such as Dogecoin (DOGE-USD) and Shiba Inu coin (SHIB-USD) are posting even larger gains. The latter is up over 16% on the day, coinciding with its listing today on the U.S. based cryptocurrency exchange, Kraken.
At least a few crypto investors consider Bitcoin safe haven asset of sorts, largely because of stimulative government policies that feed inflation and devaluation, but its price action suggests its more closely linked to other risk-sensitive assets. Added to that, data suggests that money is rotating out of Bitcoin into other speculative cryptos. 
This pattern is best captured in the ether/bitcoin trading pair, which is trading near levels not seen since 2018, according to Trading View
“A break-out of ETH/BTC would further support the thesis of an observable rotation out of BTC and into more speculative alts[coins]," the asset manager Fundstrat wrote in a research note Monday.
Beyond speculation, ETH is also used to pay transaction fees on the Ethereum blockchain. Its price action relative to Bitcoin also shows why lesser known cryptocurrencies built on top of Ethereum, especially within DeFi, are seeing the most significant gains over the last few weeks.
“When the market is moving and certain sectors are doing well, as they are currently in DeFi assets, then traders add risk and allocate out of the safe haven [bitcoin]” said Bryan Hernandez, President of the DeFi trading app, Structure.
And the initial buying in these smaller cryptocurrencies is much more speculative according to Hernandez. 
“Because smaller DeFi assets tend to be less liquid, they are more affected by moves from powerful players like big VC funds or certain market makers," he added. "The access to credit that these players have gives them an ability to really push the price to new levels that then create awareness and FOMO buying."
Other cryptocurrencies connected to the metaverse via virtual platforms The Sandbox and Decentraland, have seen swings of more than 50% and 25%, respectively, over the last several days.
Contrary to a speculative frenzy, the rotation from Bitcoin to smaller cryptocurrencies suggests a degree of market health according to Mark Elenowitz, president and CEO of the fintech firm, Horizon Fintex.
“Investors are willing to go further down the risk curve for yet-to-be-built projects (i.e. the metaverse) because, again, they view the overall market structure at the moment as trending green.” said Elenowitz.
If the new Omicron-variant does shape buyer demand long term, some investors see a path for Bitcoin to rise in value as an inflation hedge. Yet Craig Erlam, Oanda senior analyst, isn’t so certain. 
First, it isn't clear yet whether central banks will stall tapering enough to change investment growth, the analyst argues. Secondly, higher levels of inflation might cause the market to react in a markedly different way than they have during the early days of the pandemic.
“Everything is hypothetical at this point,” Erlam told Yahoo Finance. “But it's always too convenient to try to pin [Bitcoin] down to one narrative.”
David Hollerith covers cryptocurrency for Yahoo Finance. Follow him @dshollers.
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Stocks dropped on Tuesday as volatility resumed after a brief rebound earlier this week, with investors contemplating the impacts of a new coronavirus variant.
The cryptocurrency sector rebounded on Monday, with bitcoin up 5.5%.
Investors in most digital currencies are seeing tremendous interest resume, following a rather bearish week last week among most major cryptocurrencies. As of 10 a.m. ET, Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), and Dogecoin (CRYPTO: DOGE) surged 2.3%, 8.5%, and 3%, respectively. Much has been made of the move in Bitcoin to bear market territory, following Friday's variant-driven decline.
Retail and institutional clients are finding it easier to convert their fiat currencies to cryptocurrencies and transfer them to any part of the world.
"It is probably a good time to retire that word," Powell said in response to a question about his persistent use of the word to describe how long high inflation is expected to last during testimony to the Senate Banking Committee. "The fact that (U.S. Treasury) yields across the curve moved higher, led by the front end and belly, kind of speaks to that kind of assumption of more aggressive normalization maybe a little bit sooner than previously expected."
DEEP DIVE Investors unloaded stocks Tuesday after Federal Reserve Chairman Jerome Powell said it’s possible the central bank will remove stimulus faster than originally planned. Powell, along with Treasury Secretary Janet Yellen, appeared before the Senate Banking Committee.
Apple (AAPL) shares closed at all-time highs on Tuesday at $165.30. The stock was up more than 3%, as investors flocked to the iPhone maker amid a broader market selloff.
SpeQtral will utilize financing proceeds to expand its commercial strategy for both satellite and terrestrial based quantum-secure communication systems
Wall Street has known its share of legends, but few of them have made as big a splash as “the Man Who Broke the Bank of England.” That nickname belongs to George Soros who earned the tag after famously betting against the British Pound in 1992; following the Black Wednesday crash, the hedge fund manager pocketed $1 billion in a single day. This is the stuff that Wall Street legends are made of. By then Soros was already incredibly successful and in the midst of steering his Quantum Fund to decad
There are at least four signs that appear when equities are approaching the abyss.
Satya Nadella sold 838,584 shares between Nov. 23 and Nov. 24. The move comes a month before Washington state's capital gains tax goes into effect.
Multiple factors are making investors in the EV stock very jittery.
The shares were one of the few bright spots as markets sold off sharply, with almost every other major tech stock trading in the red.
AT&T Inc. shares are leading a wireless selloff Tuesday after the company gave a presentation at an investor conference that one analyst said "reinforced market fears" about what its customer-acquisition spending could mean for broader industry trends.
Stock futures opened higher Tuesday evening to recover some losses after a selloff earlier, when more hawkish remarks from Federal Reserve Chair Jerome Powell compounded with lingering uncertainty around the Omicron variant and its impacts on the economy
On Nov. 15, institutional investors and hedge funds with at least $100 million in assets under management were required to file Form 13F with the Securities and Exchange Commission (SEC). With the latest round of 13Fs, one thing stands out: billionaires were buying stocks hand over fist. Billionaire Ken Griffin is a wildly successful investor who's known for extracting big wins from his firms' options positions.
This billionaire says Rivian's doubters remind him of Tesla bears. Don't miss out again.
What kind of stocks stir up controversy like no other? Penny stocks. These tickers trading for less than $5 per share have earned a reputation as some of the most divisive names on Wall Street, with these plays either met with open arms or given the cold shoulder. It’s understandable why some investors are wary. Those opposed are quick to point out that there could be a very real reason these stocks are changing hands for pocket change, with the low share prices often masking obstacles like weak
You only have a couple more days to profit in two different ways from tax-loss selling. From a statistical point of view, that means you’re finding a security whose gyrations can explain or predict at least half of the movements of your tax loss sale candidate.
The stock market was having a rough day on Tuesday, with all three major averages in the red. At 1 p.m. ET, the Dow Jones Industrial Average, S&P 500, and the Nasdaq Composite were all lower by 1.5% or more.

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Intel, Block Supporting Mining a Positive for Bitcoin’s Price: Analyst – CoinDesk

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Large tech companies such as Intel and Block (previously Square) delving into making mining more efficient and accessible is likely to help the price of bitcoin by encouraging mass adoption, said an analyst for U.K-based digital asset broker GlobalBlock.
Intel, one of the world’s largest chip makers, said on Jan. 18 it will unveil an “ultra low-voltage bitcoin mining ASIC” which will be a more efficient specialized mining computer, competing with current miners that are in the market. “The fact that a $200+ billion tech firm is providing solutions for Bitcoin mining is more confirmation of big players entering the crypto space,” said GlobalBlock’s analyst Marcus Sotiriou.
The chipmaker said its new miner will reduce power consumption by about 15%, Sotiriou said, adding that such an increase in efficiency will help more institutional investors to enter the sector as ESG (environmental, social and governance) is one of their key investment priorities. If such a scenario plays out, it will likely help support bitcoin’s price.
Read more: How Bitcoin Mining Works
Crypto miner Griid Infrastructure, which is going public via a merger with special purpose acquisition company Adit EdTech Acquisition Corp., has already signed a supply agreement with Intel to potentially buy the chip maker’s new ASIC miners, according to a filing.
Meanwhile, payments giant Block said on Jan. 13 that it’s going ahead with its plan to build an open-source bitcoin mining system to make “mining more distributed and efficient.” If this feature is integrated with Cash App, it might increase the use of bitcoin to pay for goods and services by its users, furthering bitcoin adoption by the masses, Sotiriou noted.
“If successful, this will dramatically increase bitcoin’s use case as a means of exchange, rather than just a store of value – this would result in significantly more adoption and hence help bitcoin reach price figures of over $100,000,” he said.
Bitcoin is now trading near $42,000 since reaching its all-time high of just under $69,000 in November. The stocks of some miners, which are highly leveraged to the price of the crypto currency they mine, have tumbled more than 50% since their peak.
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Aoyon Ashraf
Aoyon Ashraf is crypto mining reporter with more than a decade of experience in covering equity markets
Follow @@Aoyon_A on Twitter
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The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.
@2021 CoinDesk

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Dogecoin value 2022: Why did Elon Musk make the cryptocurrency's value rise? – Marca English

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Dogecoin’s value increased by 5,859% over the past 12 months
Dogecoin rose to $0.20 – a 15% increase in value – after billionaire Elon Musk announced Tesla would accept the cryptocurrency for purchasing merchandise.
The cryptocoin with the shiba inu dog meme originally started as a joke, but Musk’s various tweets about it have helped Dogecoin increase by 5,859% over the past 12 months, according to Coinbase. Tesla’s website started accepting Dogecoin soon after, with items such as an electric quad bike for kids priced at 12,020 doge ($2,368), the “Giga Texas Belt Buckle” for 835 doge ($156), and a whistle for 300 doge ($57).
This is just one of many tweets by Musk regarding Dogecoin, the first one coming December 20, 2020 when he tweeted, “One Word: Doge.” Shortly after his tweet, the value of Dogecoin rose by 20%.
Musk followed that post with a barrage of Dogecoin-related tweets in February 2021, including, “Dogecoin is the people’s crypto,” and “no highs, no lows, only Doge”. After these tweets, Dogecoin’s value soared by roughly 40%.
After a full year of showing support for Dogecoin, on December 14 Musk said Tesla would accept the cryptocoin to pay for merch. Dogecoin spiked more than 20% after his tweet.
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This mom quit her job to focus on crypto full time and build 'generational wealth.' Now she makes around $80,000 per month – CNBC

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This mom quit her job to focus on crypto full time and build ‘generational wealth.’ Now she makes around $80,000 per month  CNBC
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