Connect with us

Cryto Mining

Why Is Bitcoin's Price Falling? – Forbes Advisor – Forbes

Published

on

You might be using an unsupported or outdated browser. To get the best possible experience please use the latest version of Chrome, Firefox, Safari, or Microsoft Edge to view this website.
Published: Jun 22, 2021, 5:17pm
Buy and sell the most popular cryptocurrencies
Bitcoin, the most famous digital currency, has been on a losing streak over the past few months after reaching an all-time high of more than $63,000 in the middle of April. It fell below $30,000 on June 22 for the first time since the beginning of the year before rebounding slightly.
For the year, Bitcoin has gained about 11% as of this writing, or about what the plain-Jane S&P 500 has yielded over the same time period.
“Bitcoin prices have established and continued to test a technical support level of $30,000 since January of this year,” said Alex Reffett, co-founder of East Paces Group in Atlanta. “As more technical traders have begun day-trading the asset, today we are seeing a continuation and retest of these support levels.”
While volatility has always been part of the Bitcoin experience—the price did fall more than 80% in the year or so after late 2017—there’s more at stake this time. After all, major corporations, including Fidelity and PayPal, have invested millions to get into the crypto game. And thousands more everyday investors entered the fray after state governments imposed lockdowns and the federal government distributed stimulus checks.
There are real reasons why demand for Bitcoin has dried up, from the serious (signals of earlier-than-expected rate hikes from the Fed) to the absurd (Elon Musk’s tweets). Seasoned Bitcoin investors may intuitively know how to roll with these punches. But the Bitcoin-curious, who are just one more conversation with their crypto-enthusiast friend away from diving in, should ask themselves if they’re really prepared for the full monty.
Bitcoin hit its all-time high in the middle of April after Coinbase, one of the biggest crypto exchanges, decided to go public.
That positive momentum followed months of positive developments for the crypto world. Tesla announced it would accept (and hold) Bitcoin, financial institutions like BNY Mellon and Fidelity made big deals out of giving their clients easier access to crypto funds, and behemoth payment processor Mastercard said it would facilitate transactions. El Salvador has even begun to accept Bitcoin as legal tender.
But the porch light can’t burn forever. Since the ides of April, Musk has soured on crypto thanks to renewed attention to its dire environmental impact while China has clamped down crypto mining in many of its regions.
The recent Colonial Pipeline hack renewed Congressional attention to how criminals use Bitcoin to extort well-heeled corporations. (These specific criminals, though, were not terribly sophisticated, and the Feds ultimately recovered much of the digital loot.)
The Federal Reserve didn’t help matters when it recently signaled in its latest Federal Open Markets Committee meeting that it was interested in raising interest rates a bit sooner than expected to stave off higher-than-desired inflation. Higher borrowing rates make speculative assets less appealing to investors, thereby reducing demand.
Another drag on desire to buy is a lack of supply: March was the last month the Fed doled out direct payments ($1,400 per eligible recipient), so many would-be buyers may have used up their ammo earlier on.
All of these developments have added to a general ennui among crypto investors.
Buying Bitcoin used to be something reserved for tech-savvy first adopters, and a genre of journalism briefly rose into existence to explain to perplexed readers, many of whom still don’t know what cryptocurrency is or why it exists, how to trade dollars for Bitcoin and then trade Bitcoin for something normal, like pizza. (That pizza, it turns out, was very expensive.)
Over the years, Bitcoin has become more mainstream and easier to buy through relatively secure exchanges like Coinbase. Now, normally staid, level-headed money managers, like the folks at Minneapolis-based money management firm the Leuthold Group, make the case that a percentage point or two of your portfolio can go to Bitcoin.
The reason is clear: The high growth has been impressive. While Bitcoin today is around $33,000, that’s still a dramatic rise from its price of $9,861 this time last year.
But the price can’t keep going up at this rate forever.
“At some point the market will figure out the value of crypto and incorporate that information into a high level of price for those assets,” noted economist Tyler Cowen in a Bloomberg column. “From then on, expected rates of return will be—dare I say—normal.”
By investing in Bitcoin now, you’re expecting that the speculative craze hasn’t diminished and you’ll be able to once again sell it later on for much more than you paid. But the lesson of the last three months should be that such plans, while tantalizing, are never easy to achieve.
You never quite know when the thrill of speculatively investing will be gone.
Buy and sell the most popular cryptocurrencies
Taylor is an award-winning journalist who has covered a range of personal finance topics in the New York Times, Newsweek, Fortune, Money magazine, Bloomberg, and NPR. He lives in Dripping Springs, TX with his wife and kids and welcomes bbq tips.

source

Continue Reading
Click to comment

You must be logged in to post a comment Login

Leave a Reply

Cryto Mining

Dow Jones Falls, Growth Stocks Crushed; Bitcoin Dives Again; Bank Of America Does This As Financials Thrive – Investor's Business Daily

Published

on

BREAKING:  Stock Market Correction Intensifies; Bitcoin Extends Losses Saturday
The Dow Jones Industrial Average fell late as growth stocks got spanked. Bank of America (BAC) passed a buy point as financial stocks flourished. Bitcoin was diving again, hitting Coinbase (COIN) and Grayscale Bitcoin Trust (GBTC). Discovery (DISCA) popped on an upgrade but New York Times (NYT) plunged.
The stock market struggled following a disappointing jobs report. The Labor Department reported U.S. employers added 199,000 jobs in December. That was about half what economists polled by Econoday had expected. It was also a big decline from the 249,000 jobs created in November.
The unemployment rate dropped to 3.9% from 4.2% the prior month. Economists had forecast 4.1%.
The tech heavy Nasdaq the worst hit major average, falling 1%. China e-commerce play Pinduoduo (PDD) was doing well again, closing up more than 7%. Payments stock MercadoLibre (MELI) lagged, falling 6.2%.
The S&P 500 also fell again, closing down 0.4%. Housing play D.R. Horton (DHI) lagged most, falling 6.2%. Homebuilder stocks in general struggled. The SPDR S&P Homebuilders ETF (XHB) surrendered 3.4%.
A majority of the S&P 500 sectors closed lower. Energy and financials performed best while technology and consumer discretionary were the worst laggards.
Small caps were also getting mauled by the bears. The Russell 2000 was down 1.2%.
But it was growth stocks that were given the worst thrashing. The Innovator IBD 50 ETF (FFTY), a bellwether for growth stocks, fell 2.7%.
The Dow Jones Industrial Average looked set to close positive before reversing late. It ended the session basically flat, ceding about five points.
Boeing (BA) was one of the top performers, rising 2%. It remains stuck beneath its 200-day moving average.
Walgreens Boots Alliance (WBA) was the top stock on the Dow Jones today. It closed up 2.7%. Home Depot (HD) was the biggest laggard, falling more than 2%.
Financial stocks are continuing to rally on the prospect the Federal Reserve will raise interest rates faster than previously expected.
Banking giant Bank of America managed to break past a cup-without-handle base buy point of 48.79. It ended the day above this entry after gaining 2.2%.
It formed an orderly looking pattern despite a volatile market, MarketSmith analysis shows. BAC stock’s relative strength line has just hit a new high, a bullish indicator.
While its volume is not ideal, the fact it is rising amid broader downward action is impressive.
Another stock worth watching is regional banking play Western Alliance Bancorp (WAL). It is currently building a new cup base with a 124.98 buy point.
Volume has been spiking as it forms the right side of the base, which is a good sign. It bullishly reclaimed its 50-day moving average Tuesday.
Western Alliance operates in areas including Arizona, Nevada and Southern California.
Underlining strength among financials, the Invesco KBW Bank ETF (KBWB) rose 1.6%.
Bitcoin-related stocks were falling as the cryptocurrency continued to slide. Bitcoin was trading under $42,000 after falling about 3% in the past 24 hours, according to CoinDesk.
One crumb of comfort was the fact it was off lows for the day.
The digital currency has now given up almost 40% from the levels it reached in early November.
Bitcoin plays such as Coinbase Global, Grayscale Bitcoin Trust and Riot Blockchain (RIOT) were all hit.
Cryptocurrency exchange COIN closed off lows, giving up 0.7%. GBTC fared worse, falling nearly 4%.
Bitcoin miner RIOT also ended the day off lows, giving up 0.6%.
There was some interesting movement in the media space amid upgrade and acquisition news.
Discovery roared 16.9% higher after Bank of America upgraded the stock to buy due to its mooted merger with WarnerMedia.
Analysts believe the new firm could create a strong rival to media powerhouses Netflix (NFLX) and Walt Disney (DIS) in the streaming space.
Meanwhile shares of the New York Times plunged on news it plans to buy sports news site The Athletic for $550 million. It is expected that transaction will close in the first quarter of this year.
New York Times stock ended the day near lows as it gave up 10.7%. It is now near 12-month lows.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
YOU MIGHT ALSO LIKE:
When Will It Be Time To Buy Tesla, Nvidia, Alphabet Again?
MarketSmith: Research, Charts, Data And Coaching All In One Place
These Are The 5 Best Stocks To Buy And Watch Now
The Ultimate Warren Buffett Stock Is Near A Buy Point, But Should You Buy It?
Is Walmart Stock A Buy Right Now? Here’s What Charts, Analysis Show
1/21/2022 Marathon Digital stock has been volatile as Bitcoin adoption grows. Here’s what the fundamentals and technical analysis say about the…
1/21/2022 Marathon Digital stock has been volatile as Bitcoin adoption grows….
Get instant access to exclusive stock lists, expert market analysis and powerful tools with 2 months of IBD Digital for only $20!
Get market updates, educational videos, webinars, and stock analysis.
Learn how you can make more money with IBD’s investing tools, top-performing stock lists, and educational content.
Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. The information has been obtained from sources we believe to be reliable; however no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Authors may own the stocks they discuss. The information and content are subject to change without notice.
*Real-time prices by Nasdaq Last Sale. Realtime quote and/or trade prices are not sourced from all markets.
Ownership data provided by Refinitiv and Estimates data provided by FactSet.
© 2000-2022 Investor’s Business Daily, LLC. All rights reserved

source

Continue Reading

Cryto Mining

Can I Buy Cryptocurrency With A Credit Card? – Forbes

Published

on

You might be using an unsupported or outdated browser. To get the best possible experience please use the latest version of Chrome, Firefox, Safari, or Microsoft Edge to view this website.
Updated: Jul 27, 2021, 9:00am
Like gold in the 1850s and .com stocks in the 1990s, it seems everyone is trying to get their hands on crypto. Purchasing cryptocurrency with a credit card is possible but can be a dangerous undertaking. Cardholders can expect fees from both sides of a transaction involving cryptocurrencies and credit cards, plus face the potential to lose money quickly due to volatile currency values and high interest rates.
We’ve combed through the leading exchange offerings, and reams of data, to determine the best crypto exchanges.
It’s best to check with a credit card issuer to find out whether it allows cardholders to purchase any type of cryptocurrency. American Express currently allows such transactions with a few strict terms. Bank of America recently changed its tune in 2020 when a Reddit user shared an image of a letter they received that stated cryptocurrency purchases would be treated as cash advances. (Note: Bank of America’s terms on this are still unclear.)
In addition to double-checking with a credit card company, crypto holders should also look for a cryptocurrency exchange willing to accept credit cards for deposits or purchases. Some only allow direct deposits from banks, cash deposits or debit card purchases. Coinmama, CEX.io and Paxful are all exchanges currently accepting credit cards.
Limitations also exist as to what types of credit cards are accepted by exchanges. Some exchanges may only take Visa or Mastercard credit cards. Paxful, for example, has a variety of Bitcoin vendors from around the world who sell on the exchange website. It’s one of the few exchanges currently accepting American Express credit cards, but acceptance on the exchange also greatly depends on the selected vendor.
Major U.S. credit card companies may not allow cardholders to purchase cryptocurrency with a credit card. Citibank, for example, blocked cardholders from using credit cards to purchase Bitcoin and other cryptocurrencies in 2018 fearing its volatility and the potential for fraud. Some credit card companies may even issue cash advance fees if a cardholder attempts to make a crypto purchase.
Note that some major U.S. credit card companies don’t make information on their websites easy to find regarding whether or not they allow cardholders to purchase cryptocurrencies. It’s best to call the number on the back of the card and speak to a representative. Ask clearly, directly and specifically whether or not purchasing crypto is allowed, and, if so, what types of fees will be incurred.
Some cryptocurrency exchanges don’t accept credit cards as payment, such as eToro and Coinbase.
Cardholders can expect to pay fees to both the exchange the currency is purchased with and the credit card issuer. Before making any purchases with an authorized credit card, research the exact cost for each purchase and what the monetary benefit will be (or will not be) before incurring the charge.
The exchange may charge a commission fee and/or a service fee for using a credit card to purchase or deposit crypto. For example, CEX.io is an exchange offering a handful of cryptocurrencies for purchase, including Bitcoin. Users are allowed to purchase crypto using a Visa or Mastercard credit card, but U.S. cardholders are subject to a 2.99% commission fee with a minimum purchase of $20.
Depending on the exchange, vendors within the exchange may also design fees for purchasers depending on a few factors, like where the vendor is located, the purchase amount and what type of credit card is used.
Some credit card companies allowing cardholders to make crypto purchases treat the purchases as a cash advance (cash advances usually refers to when a cardholder uses a credit card to withdraw money from an ATM). This has several disadvantages.
Let’s use common card terms as an example for the types of fees a cardholder can incur:
Other credit card risks may include:
As the cryptocurrency market evolves, so does the standard financial market. There are a few start-up credit card issuers who offer Bitcoin or other cryptocurrencies as bonuses or rewards. For example, BlockFi, a younger card company, offers 1.5% Bitcoin rewards for every purchase made. They also boast Bitcoin welcome bonuses and more rewards from trading and client referrals.
Using a credit card to purchase cryptocurrency won’t make sense for most. Cardholders should consider the major disadvantages before deciding to buy crypto using a method involving a credit card. Purchasing crypto is often best accomplished using direct deposits, debit cards or wire transfers.
Credit card purchases often come with high fees that lessen the value in a good investment or reduce returns by a significant margin. Cardholders also face a high risk of burrowing themselves into deep debt that can be hard to come out of. For those who insist on using a credit card, we advise contacting a credit card representative to discuss what the repercussions will be with a specific credit card issuer and look for a cryptocurrency exchange with the best credit card rates.
We’ve combed through the leading exchange offerings, and reams of data, to determine the best crypto exchanges.
Chauncey grew up on a farm in rural northern California. At 18 he ran away and saw the world with a backpack and a credit card, discovering that the true value of any point or mile is the experience it facilitates. He remains most at home on a tractor, but has learned that opportunity is where he finds it and discomfort is more interesting than complacency.
Dia Adams is a noted family travel expert and a real-life Mom of two teens in the DC Metro area. She has visited over 45 countries and lived in Thailand, China, and Ireland (where her son was born). Her kids have over 20 stamps in their own passports. Her passion lies in showing families how to travel more while keeping their savings and sanity. Her guidebook, Disney World Hacks, is a bestseller on Amazon.

source

Continue Reading

Cryto Mining

NFTs and DeFi overturn a banker's generational curse of poverty in 2 years – Cointelegraph

Published

on

source

Continue Reading

Trending