Bitcoin has broken above $60,000 for the first time since April, prompting a market-wide price surge.
The latest gains follow news on Friday that the US Securities and Exchange Commission is set to approve the first bitcoin futures exchange-traded fund (ETF) early next week.
Other leading cryptocurrencies have also seen big price increases in recent days, with Ethereum (ether), Binance Coin and Ripple (XRP) all rising by between 5-10 per cent over the last week.
The crypto market is now valued at more than $2.44 trillion, meaning it is now worth more than Apple, the world’s most valuable company.
Some analysts have forecast a record-breaking end to the year, with one price prediction model putting BTC on track to hit a new all-time-high by November. The same model predicts that bitcoin will hit six figures in 2021.
We’ll have all the latest news, analysis and expert price predictions right here.
Bitcoin price prediction model remains ‘amazingly accurate’ with less than 1% error – and forecasts record end to 2021
Crypto market value overtakes Apple
Bitcoin advocates share ‘best trading strategy’
Highly-anticipated bitcoin futures ETF set for approval
13:09 , Anthony Cuthbertson
With bitcoin still hovering just a couple of thousand dollars away from its all-time high, one analyst has zoomed out from the short-term market movements to look at the “big big” picture.
Looking at price data from the last nine years, crypto author Glen Goodman has extrapolated a potential peak for BTC this cycle at around $150,000. This could be followed by a major correction to around $20,000, though he warns that this lower bound could be hit before the top end is reached.
The amount of variables that could impact the market in the future mean such projections are hugely hypothetical, though interesting to consider.
This is the big big #Bitcoin picture. *If* this repeating pattern continues, the top end for $BTC this cycle is ~$150,000, and return to the bottom line would be ~$20,000.
So which target will be hit first?? Look at the pattern, decide with your own eyes, and tell me below… https://t.co/rjy6DsGgfU pic.twitter.com/YX8sWBGkJO
— Glen Goodman (@glengoodman) October 17, 2021
Saturday 16 October 2021 08:25 , Anthony Cuthbertson
Another overnight rally has seen the price of bitcoin hit a fresh six-month high above $62,000 – leaving it less than $2,000 away from its all-time high.
Bitcoin is now up by 44 per cent since the beginning of October, while other leading cryptocurrencies have also seen similarly remarkable gains.
At the halfway point, here’s how the top five have fared since the start of the month:
• Bitcoin: +44%
• Ethereum: +27%
• Binance Coin: +24%
• Cardano: +5%
• Ripple: +20%
Friday 15 October 2021 16:17 , Anthony Cuthbertson
Bitcoin has more than quintupled in price over the last 12 months, and is now less than $4,000 away from the all-time high that it experienced in mid April.
It’s been a bumpy year for bitcoin, with some analysts predicting that the latest price rally was merely a “dead cat bounce” that would see the cryptocurrency tumble all the way back to below $20,000.
The closer BTC gets to its $64,000 record, the less likely this scenario looks. One of the most prominent advocates of this bear market theory, the pseudonymous Mr Whale, seems to have been receiving a lot of comments on Twitter, judging by his latest tweet:
— Mr. Whale (@CryptoWhale) October 15, 2021
Friday 15 October 2021 14:56 , Anthony Cuthbertson
After teasing the $60,000 price mark all day, bitcoin has finally broken above it.
This is the first time since April that the world’s biggest cryptocurrency has reached this high, and breaching this milestone could prompt a significant price rally, according to one analyst.
Will Morris, a sales trader at the UK based digital asset broker GlobalBlock, believes this could be the start of an “extremely bullish” phase for bitcoin.
“Traders previously suggested that for bitcoin to enter an extremely bullish phase and go parabolic it would need to break the $59-60k level,” he tells The Independent.
“If BTC breaks to $61k there could be minimal upside pressure. All-time highs of nearly $65k will be the next resistance level before a potential price discovery phase. While the BTC price has fiercely rallied over the past few weeks, bitcoin balance on exchanges remains at the lowest levels in nine months, indicating investors are holding bitcoin in wallets rather than readying themselves to sell.”
Friday 15 October 2021 13:31 , Anthony Cuthbertson
Depending on who you ask, the answer to this question can range from $0 to north of $1 million.
But separating the so-called FUDsters from the ‘Moon Boys’ are the more realistic crypto analysts, who put bitcoin’s price within a window of between $10,000 and $250,000 over the next year.
One of the most accurate forecasts made in recent months comes from the pseudonymous Dutch analyst PlanB, who predicted in June the price of bitcoin in August and September to within less than a third of a per cent.
According to PlanB’s “worst case scenario”, bitcoin will be at $63,000 at the end of October, before shooting up to $98,000 in November and $135,000 in December. Today he tweets:
Clear skies🚀 pic.twitter.com/QQusv4slgw
— PlanB (@100trillionUSD) October 15, 2021
Friday 15 October 2021 11:06 , Anthony Cuthbertson
Bitcoin is set for more short-term gains and possibly even a buying “frenzy”, according to one crypto expert.
We’ve heard from Greg Waisman, co-founder and COO at the global payments network Mercuryo, who believes today’s ETF news could provide the next major leg up for the market that will push bitcoin to a new all-time high.
Waisman this could come within the next couple of weeks, before climbing a further $10,000 before the end of the year. Here’s what he had to say:
The $6.7 trillion US ETF industry is the largest market in the world – bitcoin frenzy may reach new heights in the near future.
Approving futures-based bitcoin ETFs will be seen as a forward-thinking move by the SEC and could lead to a bullish run. Given the size of the US ETF industry and current positivity in the market, following China’s ban being put behind the public, El Salvador’s good will – using surplus funds from The Bitcoin Trust for noble purposes and the emergence of India as the country with most crypto users, among other reasons, I believe not only will bitcoin cross $60,000 but also break it’s all-time high this month and potentially surpass $65,000 by the end of the month.
Unless some barriers to growth appear in the latter stages of the year, bitcoin is poised to reach $75,000 by the end of the year.
Greg Waisman, Mercuryo
Friday 15 October 2021 10:45 , Anthony Cuthbertson
October has historically been a positive month for bitcoin, averaging 13 per cent gains since 2011, though this is just a fraction of the price increase typically seen in November.
With nearly a 40 per cent price rise in October already, bitcoin is vastly outperforming the precedent.
We’re still only halfway through October, but if bitcoin stays at its current price and then replicates the average gains of previous years, it will reach six figures before Christmas. That’s clearly just hypothetical but several prominent analysts like PlanB have made similar projections.
Friday 15 October 2021 09:10 , Anthony Cuthbertson
You can read the full story of the long-awaited bitcoin futures ETF right here, which includes analysis from crypto experts about what this news means for the space.
We’ll be getting more reaction throughout the day from analysts, as well as expert price predictions for bitcoin and the rest of the cryptocurrency market. Could we be in for a record-breaking end to 2021? It would take only one more sudden surge, like the one we saw earlier this morning, for BTC to hit a new all-time high – though some are warning that mania could once again be creeping into the market, signalling a dip could also be on its way at some point.
Bitcoin ETF news sends price of crypto soaring
Friday 15 October 2021 06:51 , Anthony Cuthbertson
The price of bitcoin is now less than $5,000 away from its all-time high, after suddenly shooting up from below $57,000 to close to $60,000 on Friday morning.
The gains come off the back of a report that the US Securities and Exchange Commission (SEC) is set to approve the launch of a bitcoin exchange-traded fund (ETF).
This would be a massive step forward for bitcoin and cryptocurrency investors, who have been calling for a bitcoin ETF approval for years.
The official Twitter account from the SEC’s investor education office also hinted that an announcement was imminent, tweeting about the risks of trading bitcoin futures contracts.
Before investing in a fund that holds Bitcoin futures contracts, make sure you carefully weigh the potential risks and benefits.
Check out our Investor Bulletin to learn more: https://t.co/AZbrkpfn8F
— SEC Investor Ed (@SEC_Investor_Ed) October 14, 2021
Thursday 14 October 2021 15:04 , Anthony Cuthbertson
Elon Musk has once again sent the price of dogecoin soaring after trading tweets with the cryptocurrency’s founder, Billy Markus.
The meme-inspired crypto shot up nearly 10 per cent after Musk replied with the ‘100’ emoji after Markus tweeted, “if you don’t run a dogecoin node, you are satan”.
The centibillionaire also posted a crying face emoji to a meme posted by Markus, inspired by hit Netflix show Squid Game.
— Elon Musk (@elonmusk) October 14, 2021
As the richest person in the world, Musk revealed earlier this year that beyond Tesla stock and his share of ownership in SpaceX, cryptocurrency is the only thing of significant value that he owns.
The only ones he has admitted to personally owning are bitcoin, Ethereum (ether) and, you guessed it, dogecoin.
Thursday 14 October 2021 13:28 , Anthony Cuthbertson
After overtaking the market value of Apple today, we put this chart together to see how the cryptocurrency market stacks up against the top 10 leading assets.
Accounting for nearly half of the global crypto market cap, bitcoin ranks above Facebook, Tesla and Berkshire Hathaway in the top 10.
No included on this chart are precious metals, but if they were gold would be way out in front with a market cap of more than $11 trillion. Silver would also rank 7th on the list, just ahead of bitcoin with a market cap of $1.31 trillion.
Thursday 14 October 2021 12:01 , Anthony Cuthbertson
The cryptocurrency market is now worth more than the world’s most valuable company.
Bitcoin’s price surge, combined with gains from Ethereum (ether), Cardano (ada) and Ripple (XRP) over the last few hours has pushed the overall crypto market cap up by 5 per cent.
This puts it at $2.37 trillion – roughly $40 billion more than Apple.
Bitcoin alone is now closing in on the market cap of silver, with analysts making comparisons to the astonishing price increase that it experienced in 2013.
You can read the full story here.
Bitcoin price rally sees crypto market overtake world’s most valuable company
Thursday 14 October 2021 08:51 , Anthony Cuthbertson
Bitcoin is once again on the ascendency, hitting a fresh five-month high on Thursday morning after a brief moment of price consolidation in the middle of the week.
The overall crypto market has also shot up, with an increase in value of around 5 per cent since this time yesterday. That equates to more than $100 billion.
We’ve heard from the UK head of the Luno cryptocurrency exchange this morning, who offers his thoughts on why bitcoin and other leading cryptocurrencies are surging.
The rising expectations for a bitcoin ETF shown by rising open interest, and growing basis premiums for CME’s futures may be a cause of the bullish momentum. CME’s share of the global open interest in the bitcoin futures also reached 17 per cent this week – the highest level recorded since February 2021 suggesting institutional traders have returned to bitcoin.
Sam Kopelman, Luno
Wednesday 13 October 2021 11:24 , Anthony Cuthbertson
The price of bitcoin has now slipped below $55,000, though other leading cryptocurrencies are seeing a major resurgence.
Binance Coin is now up more than 16 per cent since this time yesterday, while Polkadot and Uniswap are both up by more than 7 per cent.
The latest gains have pushed Binance Coin’s price above $450 – less than $200 away from its all-time high – and means its market cap is now close to $80 billion.
The reason for the price surge appears to be the introduction of a $1 billion fund that Binance claims will be “the biggest growth fund in the history or crypto”.
Wednesday 13 October 2021 09:51 , Anthony Cuthbertson
For the first time ever, the US has overtaken China to become the top destination for bitcoin miners.
New data from the Cambridge Centre for Alternative Finance shows that one third of bitcoin’s hashrate is now in the US, following a 428 per cent increase since September 2020.
The shift comes after China’s massive crackdown on mining operations in the country, which wiped out roughly half of all bitcoin miners.
Cheap energy and vast renewable power sources has made the US an attractive destination for miners, though it still doesn’t command the same dominance in the sector as China once did. Analysts see the spreading out of market share as a major positive for bitcoin and should ultimately reduce big price fluctuations as no single country can have a significant impact on the sector through introducing new legislation.
Wednesday 13 October 2021 07:15 , Anthony Cuthbertson
Two of the most high-profile bitcoin advocates have offered their advice on cryptocurrency trading.
MicroStrategy CEO Michael Saylor, who has ploughed billions of the company’s cash reserves into bitcoin, and Binance CEO Changpeng Zhao (CZ) have both said they do not look at short-term price swings.
Instead, CZ advises to “focus on the long term”, while Saylor says “the best strategy is to buy bitcoin and wait”. It seems to have worked for him so far, with MicroStrategy more than doubling the $3.16 billion that it has invested into bitcoin.
Trading #Bitcoin is like trading Apple, Amazon, Google, or Facebook a decade ago. The more you obsess over timing the market, the more mistakes you make. They were all technology networks that were dominant & destined to grow. The best strategy is to buy bitcoin and wait. https://t.co/D3XiQ2B71R
— Michael Saylor⚡️ (@saylor) October 12, 2021
Wednesday 13 October 2021 06:55 , Anthony Cuthbertson
Bitcoin’s steady price gains since the start of the week appear to be on hold, as it remains below $56,000 on Wednesday morning.
Making up for the lack of movement are several leading cryptocurrencies that have surged in price overnight.
Binance Coin is up 8 per cent, while Solana and Polkadot are both up by around 3 per cent. Bitcoin’s slight dip in price, combined with these altcoin gains, mean the overall crypto market has moved by less than a third of a per cent since this time yesterday.
Tuesday 12 October 2021 19:11 , Anthony Cuthbertson
The price of bitcoin has dipped slightly over the last few hours, falling from above $57,000 to below $56,000.
Despite the losses, BTC remains up by more than 10 per cent week-on-week, and remains within a relatively tight trading window that has proved remarkably stable since the sudden surge at the start of October. Bitcoin’s market cap also remains above $1 trillion, though the overall crypto market cap has fallen by just over 2 per cent to $2.29 trillion over the last 24 hours.
Here’s how the price chart looks for the last seven days, courtesy of CoinMarketCap.
Tuesday 12 October 2021 13:27 , Anthony Cuthbertson
After bitcoin hit an all-time high of just above $64,000 in mid April, the cryptocurrency suffered one of the most devastating price crashes in its history that took it below $30,000.
One of the leading causes was China’s crackdown on cryptocurrency, which forced miners – which made up more than 70 per cent of the network – to close operations and move out of the country. But while this had a negative impact on bitcoin’s price in the short term, some crypto experts believe it will actually be beneficial in the long run.
“Periodic ‘shock-tests’ seem to only make bitcoin grow stronger,” Paolo Ardoino, chief technology officer of the exchange Bitfinex, tells The Independent.
“The hashrate is recovering to reach a near all-time high in the wake of the China ban… We see the king of crypto is once again showing its resilience. In the case of any ban or restrictions on bitcoin, there will always be someone left to fill the void. We expect to see others step up as China’s power diminishes. This is a true testament to the far reach and resilience of the industry.”
Tuesday 12 October 2021 11:27 , Anthony Cuthbertson
Following El Salvador’s pioneering Bitcoin Law, which made the cryptocurrency legal tender in the Central American country last month, there has been a lot of speculation over which countries might follow suit.
A bold new prediction has just come from Alex Hoeptner, the CEO of cryptocurrency exchange Bitmex, who believes that at least five countries will adopt bitcoin by the end of next year.
Hoeptner says “all of them will be developing countries,” citing remittance fees, inflation and politics as the three main factors driving the adoption.
“Over the next year, and as El Salvador works out the kinks in its rollout, savvy politicians will be thinking of how they can take a similar path, and how it might benefit both them and their constituents,” he said. “What El Salvador did is take the first leap of faith, making similar moves by other countries much easier to consider.”
Tuesday 12 October 2021 09:57 , Anthony Cuthbertson
JPMorgan CEO Jamie Dimon has said he believes bitcoin is “worthless”, while also revealing that his clients disagree.
He said that JPMorgan will provide customers “as-clean-as-possible access” to bitcoin, saying that his personal opinion on the world’s most valuable cryptocurrency is irrelevant when there is such strong demand for it.
It is not the first time the controversial CEO has spoken out against bitcoin, though his latest comments have revealed a fundamental misunderstanding about the cryptocurrency. He questioned whether bitcoin’s fixed supply – no more than 21 million coins will ever exist – will magically increase in the future, asking: “How do you know it ends at 21 million? You all read the algorithms? You guys all believe that? I don’t know, I’ve always been a skeptic of stuff like that?”
If he bothered to “read the algorithms” himself, he would realise that it is just five lines of code that limit bitcoin’s supply.
Five lines of code that results in 21m #Bitcoin pic.twitter.com/Isx8CTYMe0
— Bitcoin (@Bitcoin) October 12, 2021
Tuesday 12 October 2021 09:31 , Anthony Cuthbertson
Widely reported speculation that the US Securities and Exchange Commission (SEC) is interested in four separate bitcoin exchange-traded funds (ETF) is being cited as one of the driving factors behind the cryptocurrency’s astonishing price rise since the start of October.
We’ve heard from Konstantin Anissimov, executive director of the crypto exchange CEX.IO, who says the rumours are just one of several factors pushing bitcoin’s price higher.
Here’s what he had to say:
There are a few reasons why bitcoin is currently experiencing a bullish surge.October has been a good month for crypto investors. El Salvador’s move to adopt bitcoin as legal tender has been seen in a positive light.El Salvador’s President, Nayib Bukele announced that they will use surplus funds from The Bitcoin Trust to build a veterinary hospital. The use of bitcoin for such a noble cause has surely played a role in public approval and a gain in price.Another reason for Bitcoin’s increase in value is JPMorgan’s recent note to investors – it said that the prized crypto asset seems to be a better hedge against inflation than gold. I believe the latest bitcoin rally is a direct result of inflation concerns and investors are using the cryptocurrency as a hedge against it. The US’s positive stance on cryptocurrencies in recent weeks is another contributing factor.The public sentiment is bullish at the moment and there appear to be no roadblocks in the near future. 2021 has been a topsy-turvy year for cryptocurrencies as is usually the case – we could be in for a good end to the year!
Konstantin Anissimov, CEX.IO
Tuesday 12 October 2021 07:58 , Anthony Cuthbertson
A mysterious investor, or group of investors, has placed an order to buy $1.6 billion worth of bitcoin on a cryptocurrency exchange.
Such a large volume trade has inevitably contributed to bitcoin’s price surge, pushing it above $57,000 for the first time since May.
Ki Young, a crypto analyst and CEO of on-chain data firm CryptoQuant, speculated that traders may be taking on large positions ahead of a rumoured approval by the US Securities and Exchange Commission of a futures-based bitcoin exchange-traded fund (ETF). This kind of announcement would be huge for bitcoin, and would almost certainly lead to fresh new price highs.
Tuesday 12 October 2021 07:51 , Anthony Cuthbertson
Bitcoin has risen by nearly a third in value since the start of the month, with the price gains pushing the overall crypto market cap above the value of tech giants like Amazon, Alphabet (Google) and Microsoft.
The cryptocurrency market is currently worth $2.32 trillion, meaning only Apple is worth more at $2.36 trillion.
The market value of bitcoin alone is more than $1 trillion, meaning one more price rally could push it above silver. Some analysts and investors, such as MicroStrategy’s Michael Saylor, believe the world’s most valuable cryptocurrency will one day “flip” gold, due to its inbuilt scarcity. That would put the price of a single bitcoin at around half a million dollars.
Tuesday 12 October 2021 07:35 , Anthony Cuthbertson
to The Independent’s live coverage of the crypto market. With another bull run seemingly underway, we’ll have all the latest news, updates and analysis throughout the week for bitcoin, Ethereum (ether) and other leading cryptocurrencies.
We’ll also be bringing you expert price predictions, as well as seeking to answer the question of whether we really are set to see a new all-time high for bitcoin within the next 10 weeks. It’s currently less than $7,000 away from hitting a new record, with its notorious volatility meaning such a jump could be achieved in just a few hours – though such a significant price move could also go the other way.
Latest Stock Market News for Sept. 27, 2022 – The New York Times
Concerns about rising interest rates and the prospects of a global slowdown remain.
Follow our latest coverage of business, markets and economy.
Isabella Simonetti and
Data delayed at least 15 minutes
By: Ella Koeze
Unease on Wall Street continued on Tuesday, bringing the stock market to its longest losing streak since February 2020, even as trading in global markets started to calm after days of turmoil in everything from currencies to oil prices.
Trading was volatile. After an early gain, the S&P 500 changed course and ended 0.2 percent lower for the day, its sixth consecutive daily decline and a new low for the year. The last time the S&P 500 recorded a drop for that many days was in February 2020, when investors were shaken at the beginning of the coronavirus pandemic.
The S&P 500 has dropped 6.5 percent over the past six trading days. Market sentiment has turned sharply since a summer rally lifted the index some 17 percent from a June low, as investors have faced up to the idea that central banks around the world won’t slow down their campaign to raise interest rates to combat inflation, even if that threatens the economy.
The hard line from central bankers, who are trying to control the price increases that are running at their fastest pace in decades, has analysts predicting that a recession is more likely for the United States, Britain and continental Europe.
“It’s looking very clear now that the major central banks are not going to blink in bringing down inflation at the cost of growth,” said Rob Subbaraman, head of global macro research at Nomura. “I’m more worried about Europe than the U.S. in terms of the depth of the recession.”
Several central banks, including the Federal Reserve and the Bank of England, raised rates last week, with more increases in store.
On Tuesday, Charles Evans, the president of the Federal Reserve Bank of Chicago, said in a speech that “we will need to raise rates further and then to hold that stance for a while” to tame inflation.
Stock trading in Europe and Asia was steadier than in recent days, but some major benchmarks still ended slightly lower. The pan-European Stoxx 600 index fell 0.13 percent, while in Asia, Japan’s Nikkei climbed 0.5 percent and South Korea’s Kospi composite index gained 0.1 percent.
The Shanghai composite index rose more than 1 percent. Reuters reported that Chinese market regulators had asked brokers to help stabilize domestic stock markets ahead of an important Communist Party congress next month.
In Britain, the center of financial turmoil in recent days, the FTSE 100 dropped about half a percent, while the British pound climbed to $1.072, a day after touching a low point against the dollar. Investors there have been rattled by the government’s announcement on Friday of a sweeping plan to cut taxes and increase borrowing.
Raphael Bostic, the president of the Federal Reserve Bank of Atlanta, said on Monday that the severe market reaction to the British government’s proposals reflected a fear that the “new actions will add uncertainty to the economy.”
In the United States, “the key question will be, what does this mean for ultimately weakening the European economy, which is an important consideration for how the U.S. economy is going to perform,” Mr. Bostic said in an interview at a Washington Post event.
When asked whether the instability emanating from Britain increased the chance of a global recession, Mr. Bostic said, “I think it doesn’t help it.”
Oil prices regained some lost ground on Tuesday, with the price of West Texas Intermediate crude, the U.S. benchmark, rising 2.3 percent, to about $78.50 a barrel. The gains came as some oil producers in the Gulf of Mexico, including Chevron and BP, said they would evacuate some staff from oil platforms as Hurricane Ian made its way toward Florida.
On Friday, oil prices had dropped below $80 a barrel for the first time since January.
Jeanna Smialek and Joe Rennison contributed reporting.
The new British government’s plan for tax cuts, borrowing and spending will be met with a “significant” response by monetary policy officials, Huw Pill, the chief economist of the Bank of England, said on Tuesday. That could pit the central bank’s effort to reduce inflation by cooling demand against the government’s desire to stimulate the economy.
At the end of last week, Kwasi Kwarteng, the chancellor of the Exchequer, spooked financial markets when, without citing an independent fiscal and economic assessment, he revealed plans for the biggest tax cuts in half a century and an increase in government borrowing. On Monday, the pound dropped to a record low against the U.S. dollar, and analysts began to predict it would soon reach parity, or a one-to-one exchange rate. British borrowing costs shot higher as bond yields jumped to the highest levels in more than a decade, disrupting the mortgage market as traders bet the central bank would have to raise interest rates aggressively to tame inflation.
In a statement on Monday, the Bank of England appeared to rule out any interest rate increases before its next meeting in early November. Mr. Pill indicated that when the time came for a move it would be “significant,” a word he used often.
“We have all seen the recent significant fiscal news in the past few days,” Mr. Pill said on Tuesday at a conference hosted by Barclays and the Center for Economic Policy Research in London. “That has had significant market consequences as well as significant implications for the macro outlook.”
“It’s hard not to draw the conclusion that all this will require a significant monetary policy response,” he added.
The government’s policies, which include capping energy costs for businesses and households, “will act as a stimulus to demand in the economy,” Mr. Pill added, offering some of the first glimpses into how the bank will assess the recently announced measures.
One criticism of the government’s policies is that they pull in the opposite direction to the central bank’s goal of bringing down inflation, which is near a 40-year high. Last week, the cental bank raised interest rates by half a percentage point, disappointing some who thought that the move would be larger. The next day, the chancellor’s announcement on tax cuts and other measures shocked markets. Since then, traders have added to bets on interest rates to rise even more.
The criticism was echoed by the International Monetary Fund, which on Tuesday said that the government’s “large and untargeted fiscal packages” were undercutting monetary policy. The moves, it added, could also hurt low-income earners.
“The nature of the U.K. measures will likely increase inequality,” the I.M.F. said in a statement.
Mr. Pill also described the changes in British financial assets as significant. He said that these changes were part of a shift in asset prices in response to higher interest rates around the world, but that there was “very clearly a U.K.-specific element.”
Policymakers at the central bank “are certainly not indifferent to the re-pricing of financial assets we have seen,” Mr. Pill said.
Because Britain is a small, open market economy, higher bond yields and a weaker currency have an “important influence” on the cost of financing and price of imports, he said.
On Tuesday, the pound was trading below $1.08, up from its recent lows but still at levels unseen since the mid-1980s. Yields on benchmark 10-year bonds were at 4.51 percent, the highest since the financial crisis of 2008.
In all, the market moves have made the bank’s job of bringing down inflation harder, Mr. Pill said. Inflation is about five times the bank’s 2 percent target, even after seven interest rate increases since late 2021.
“Recent market developments have created their own additional challenges for the pursuit of our target,” Mr. Pill said.
Federal Reserve officials confront a world of rapid inflation, slowing growth and rampant uncertainty coming from turmoil abroad. In spite of all that, they are still predicting that they might be able to cool down the U.S. economy without tipping it into a painful recession.
Economists and markets are dubious, and even central bankers acknowledge that there are risks. But here are some of the reasons they have laid out for why they might be able to pull it off:
America has a strong job market. U.S. employers are still hiring at a solid clip, and the unemployment rate is near a 50-year low. “This gives us some room to maneuver to try to take care of the inflation problem as soon as we can, while the labor market is still strong,” James Bullard, president of the Federal Reserve Bank of St. Louis, said at an event in London on Tuesday.
Job openings are plentiful. Some economists think that the strong job market could provide a cushion, specifically because so many jobs are going unfilled right now. That might mean that job openings could fall as the economy slows — but without unemployment rising as sharply as it has historically amid declining demand. Jerome H. Powell, the Fed chair, called that possibility “plausible” at his news conference last week.
Inflation expectations are stable. Consumers’ longer-term inflation expectations have moderated recently. That's good news, because when consumers and businesses anticipate fast inflation, they can act in ways that make it more likely, such as asking for rapid pay increases or instituting regular price changes. The continued stability gives officials hope that price increases will not be as difficult to stamp out as they were in the 1980s, for instance.
Still, the risks are real. Several Fed officials have pointed to the turmoil abroad — the war in Ukraine, lockdowns in China and uncertainty in Britain — as a threat that could draw the United States into recession. It is also hard to guess how today’s rapid rate increases will play out over time, because their full effect takes a while to show up. And supply chains, while improving, could always become tangled again.
The Fed’s approach offers “a path for employment stabilizing at something that still is not a recession,” Charles Evans, the president of the Federal Reserve Bank of Chicago, said on Tuesday during an interview on CNBC Europe. “But there could be shocks.”
The surging dollar is wrecking stock portfolios, clobbering commodity prices and sinking rival currencies. The British pound has been among the most volatile currencies against the dollar, tumbling 5.6 percent over the past seven days, and briefly hitting a record low on Monday of $1.0327.
But one asset has been relatively calm over the past week: Bitcoin. The cryptocurrency has risen 6.5 percent over the past seven days, a surprisingly strong run that has caught the eye of crypto bulls and bears.
“You know we’ve reached a unique time in history when #Bitcoin suddenly is less volatile than fiat currencies,” tweeted Sven Henrich, the founder of NorthmanTrader, a markets research firm. Mr. Henrich was one of the most prominent bears during the recent bull market, warning about overpriced assets like crypto.
When central banks raised interest rates, Bitcoin largely traded like risky assets, such as tech stocks. But that hasn’t necessarily been the case over the past month. Bitcoin has traded in the green (but only slightly) so far in September, while the tech-heavy Nasdaq is down nearly 10 percent over that period.
But zoom out further, and the picture looks more frightening for crypto bulls. Bitcoin has lost more than half its value in 2022, far underperforming stocks, bonds and most currencies.
The Federal Reserve’s determination to crush inflation in the United States by raising interest rates is inflicting profound pain in other countries. Those increases are pumping the value of the dollar — the go-to currency for much of the world’s trade and transactions — and causing economic turmoil in both rich and poor nations, writes Patricia Cohen of The New York Times.
On Monday, the British pound touched a record low against the dollar as investors balked at a government tax cut and spending plan.
And China, which tightly controls its currency, fixed the renminbi at its lowest level in two years while taking steps to manage its decline.
The dollar is the world’s reserve currency — the one that multinational corporations and financial institutions most often use to price goods and settle accounts. Roughly 40 percent of the world’s transactions are done in dollars, whether the United States is involved or not, according to a study done by the International Monetary Fund.
And now, the value of the dollar compared with other major currencies like the Japanese yen has reached a decades-long high. The euro, used by 19 nations across Europe, reached 1-to-1 parity with the dollar in June for the first time since 2002.
In an anxious world, the dollar has traditionally been a symbol of stability. The worse things get — like during a pandemic or war, or amid climate disasters — the more people buy in dollars. And however cloudy the economic outlook is in the United States, it’s still better than in most regions.
Rising interest rates make the dollar all the more alluring to investors by ensuring a better return. That means they are investing less in emerging markets, further straining those economies.
The unusual concatenation of events is making things even worse for countries that might otherwise be able to take advantage of a devalued currency to export more of their own goods, which have become cheaper.
Bitcoin still dominates total payments on BitPay despite the bear market – Cointelegraph
Total crypto payments on BitPay remained stable despite the bear market, with monthly transactions surging from around 58,000 in 2021 to 67,000 in 2022.
The cryptocurrency bear market has had an impact on how people pay with crypto, but Bitcoin (BTC) remains a major payment tool despite huge volatility, according to data from BitPay.
The share of Bitcoin payments in the total BitPay transactions has been shrinking amid the ongoing cryptocurrency winter, but it’s still the most popular cryptocurrency for payments on the platform.
The sales volumes of Bitcoin-based payments on BitPay accounted for as much as 87% last year and dropped to 52% in the first quarter of 2022 amid the bear market, BitPay’s vice president of marketing Merrick Theobald told Cointelegraph. In contrast to the number of transactions, Bitcoin sales volumes on BitPay are associated with the total value of crypto payments processed in Bitcoin.
Theobald noted that BitPay observed a sales volume impact mainly among non-stablecoin purchases as stablecoin sales continued to occur regardless of crypto price fluctuations.
Theobald stressed that overall BitPay transactions remained stable despite the market decline, with monthly transactions surging from around 58,000 in 2021 to 67,000 transactions in 2022.
In line with sales volumes, the amount of Bitcoin payment transactions has also been significantly falling this year. According to data from BitPay, the BTC transaction share dropped from 57% in March to 48% in July.
On the other hand, BitPay users have been increasingly paying in other cryptocurrencies like Litecoin (LTC), as LTC transactions surged from 14% in March to 22% in July.
Despite a massive drop in Bitcoin payments amid the bear market, BTC still remains the cryptocurrency most commonly used for transactions on BitPay and makes up more than 50% of all sales on the platform. According to Theobald, that is another evidence that Bitcoin’s payment utility use case — the one originally described by BTC creator Satoshi Nakamoto — is still relevant. The exec said:
Theobald also suggested that some users might have preferred to pay with Bitcoin amid the bear market because it can be more expensive to sell BTC at an exchange and use it later to buy items online. “BitPay provides customers with a more direct and less expensive way to use their Bitcoin to buy everyday items,” he added.
Related: Bank of Russia agrees to legalize crypto for cross-border payments: Report
BitPay is one of the largest cryptocurrency payment companies in the world, allowing individuals and businesses to buy products and services with crypto or accept crypto as payment. BitPay provides crypto payment services to a wide number of companies in the United States, including Newegg, Verifone and Shop.com. The BitPay platform has also gained popularity for administrative payments and donation campaigns in the United States.
The news comes amid JPMorgan reporting on decreasing demand for cryptocurrencies as a payment method over the past six months. Takis Georgakopoulos, JPMorgan’s global head of payments, said that the bank has been handling significantly fewer crypto payments, reportedly stating that JPMorgan sees “very little” demand for such payments right now.
India Freezes Bitcoin at Binance Amid Investigation Involving Crypto Exchange Wazirx – Regulation Bitcoin News – Bitcoin News
by Kevin Helms
India’s Enforcement Directorate (ED) says it has frozen more than 77.6 bitcoins that were transferred to Binance from Indian crypto exchange Wazirx. The freeze is part of a money laundering investigation into a mobile gaming application.
India’s Directorate of Enforcement (ED) announced Wednesday that it has frozen 77.62710139 bitcoins under the country’s Prevention of Money Laundering Act (PMLA). The ED is the Indian government’s law enforcement and economic intelligence agency.
The freeze is part of the ED’s investigation into a mobile gaming application called E-nuggets. According to the announcement, the cryptocurrency was transferred from Wazirx, a popular Indian exchange, to Binance. The ED also tweeted a summary of its action.
The law enforcement agency explained that “Aamir Khan, S/o Nesar Ahmed Khan launched a mobile gaming application namely E-Nuggets, which was designed for the purpose of defrauding [the] public,” adding:
After collecting seizable amount of money from the public, all of a sudden withdrawal from the said app was stopped on one pretext or the other. Thereafter, all data including profile information was wiped off from the said app servers.
The ED explained that its investigations have revealed that the accused transferred part of the illegally earned funds overseas via the Indian crypto exchange Wazirx.
The accused allegedly opened a dummy account in the name of “Sima Naskar (Proprietor of M/s Pixal Design)” with Wazirx and used it to purchase cryptocurrencies, the ED further described, elaborating:
Thereafter the said crypto currencies were further transferred to another account in another crypto exchange, namely Binance.
“The balance of said transferred cryptocurrencies i.e. 77.62710139 bitcoins [equivalent to USD 1,573,466 (Rs 12.83 crore approximately)] at Binance crypto exchange has been freezed,” the ED wrote.
Binance was believed to have acquired Wazirx in 2019. However, Binance CEO Changpeng Zhao (CZ) recently said that the acquisition “was never completed,” emphasizing that “Binance has never — at any point — owned any shares of Zanmai Labs, the entity operating Wazirx.”
The ED froze the bank assets of Wazirx worth more than $8 million in August. However, earlier this month, Wazirx said that its bank accounts have been unfrozen. Following Wazirx, the ED froze crypto and bank assets worth $46 million of Vauld, a crypto platform backed by Peter Thiel. In August, the agency searched crypto exchange Coinswitch Kuber. However, the CEO of the exchange said that it was not related to money laundering investigations.
What do you think about the ED freezing bitcoin held at crypto exchange Binance? Let us know in the comments section below.
A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
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