Connect with us

Bitcoin

Bitcoin Is Skyrocketing As Investors Panic About Coronavirus

The cryptocurrency has soared as fears about the coronavirus outbreak send shock waves throughout global stock markets.
The price of one bitcoin (XBT) is now hovering around $9,300. Bitcoin is up nearly 10% this week and has gained 30% since the end of 2019. It’s the best start to the year for bitcoin since 2012.
Worries about the rapid spread of the coronavirus is one factor boosting bitcoin, an asset that often has gone up when investors are nervous. But it isn’t the only factor helping to push bitcoin higher.
“The recent bitcoin rally can be attributed to ongoing economic uncertainties,” said Shaun Djie, CEO of digital token company Digix in comments e-mailed to CNN Business.
Djie cited lingering worries about US-China trade relations, Brexit concerns and political tension between Japan and South Korea as factors that have boosted bitcoin prices. But the coronavirus is clearly the biggest catalyst as of late.
“The rise in bitcoin price correlates to the ongoing outbreak,” Djie said.
In that sense, bitcoin’s latest spike is similar to gold’s stellar run this year. The yellow metal has also surged this month and is now trading at a seven-year high.
“Is this peak bullishness for the stock market? Gold and bitcoin are up as investors don’t seem convinced about last year’s stock rally,” said Marija Veitmane, senior multi-asset strategist with State Street in an interview with CNN Business.
Veitmane added that bitcoin, as well as gold, is benefiting from the fact that interest rates are low (or in some cases, negative) following cuts by the Federal Reserve and many other central banks last year.
That has led to a decline in the US dollar versus other currencies over the past few months.

Weaker dollar is good for bitcoin

Bitcoin, gold and other cryptocurrencies and precious metals have historically done well when investors bet that the value of big government-backed currencies will fall.
“There is a new consensus building about dollar weakness,” Veitmane said. “Bitcoin and gold may continue to do well as safe haven investments.”
Djie agreed. “Gold and bitcoin have become prominent alternatives for retail investors looking to safeguard their wealth.”
Investors considering bitcoin as a long-term investment should probably think of bitcoin much like gold. It could be a small part of a portfolio but not something investors should go overboard with, especially given the volatility of the cryptocurrency.
After all, bitcoin prices are still more than 50%below the all-time high of nearly $20,000 that they hit in December 2017 — even though they’ve nearly tripled from a recent low of about $3,200 in December 2018.

Big Tech and Wall Street embracing crypto

Bitcoin investing has become more mainstream thanks to cryptocurrency initiatives by big tech companies like Square (SQ) and Facebook (FB).
“The backing from Square and Facebook are definitely very significant to the overall crypto industry as it validates distributed technologies and the overall digital assets and cryptocurrency space,” Djie said. “The embrace of crypto by these companies can allow mainstream users to enjoy the versatility and agility of the technology.”
The rise of futures trading for bitcoin on the Chicago Mercantile Exchange (CME) may also help validate bitcoin with larger mutual funds, hedge funds and pensions.
“Among the biggest contributors to the rally, as I see it, is the hope that 2020 could finally see institutional investors move into the digital field en masse, prompted by growing client demand and more attractive ways to get exposure than direct ownership of coins,” said Frank Holmes, CEO and chief investment officer of U.S. Global Investors (GROW), in a recent blog post.
But Holmes conceded that the Securities and Exchange Commission could provide the biggest boost for bitcoin if it ever approves a crypto-backed exchange-traded fund. The SEC has rejected numerous proposals so far.
“It’s no exaggeration to say that a bitcoin ETF is highly anticipated,” Holmes wrote.
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Banking

U.S. Takes Crypto Crime Seriously with Anti-Money Laundering Reforms

The United States passed into law its Anti-Money Laundering Act of 2020, which takes effect on January 1, 2021. This brings digital currency exchange companies and other digital-asset-related businesses under the scope of regulations of the Bank Secrecy Act (BSA), which requires financial institutions “to actively detect, monitor and report potential money laundering activity.”

“I’m pleased that our anti-money laundering legislation was included as a part of this year’s [National Defense Authorization Act]. This bipartisan legislation protects Americans by depriving criminals and terrorists of the tools they use to finance illicit activity. It is the first serious overhaul of our anti-money laundering system in decades, and it makes sense to include it in the biggest, most important national defense legislation Congress passes each year,” South Dakota Sen. Mike Rounds said in a press release

The massive anti-money laundering reforms are targeting businesses dealing with digital currencies and assets by clearly specifying the definition of a “financial institution” to “‘a business engaged in the exchange of currency, funds, or value that substitutes for currency or funds” and “a licensed sender of money or any other person who engages as a business in the transmission of funds or value that substitutes for currency.” 

The reforms further define a “money transmitting business” to include those who deal with “currency, funds, or value that substitutes for currency.” Now, there are no longer loopholes that digital asset companies can use when dealing with the Financial Crimes Enforcement Network (FinCEN), the agency that enforces the BSA.

Stricter Penalties Enforced

Aside from updating definitions to ensure that digital currency exchange firms and others dealing in digital assets are clearly within the scope of the AML Act of 2020 and the BSA, stricter penalties are now being enforced for crypto criminals

Now, those who have been found guilty of violating the AML Act of 2020 and/or BSA are faced with fines amounting to profits earned while committing the violation and possible jail time. Those guilty of an “egregious” breach are also going to be banned from taking a board member position of any financial institution in the country for 10 years. Furthermore, employees of financial institutions who commit these crimes will be obligated to return to their employer all bonuses received during the time the act was committed. 

FinCEN is being given additional resources, like increasing its manpower, to ensure the enforcement of these reforms. This will further safeguard investors against crypto crimes and nail down digital currency exchange firms and other digital-asset-related businesses that do not comply with BSA regulations.

Continue Reading

Bitcoin

Bitcoin (BTC) Crosses 55k And Is Heading Towards 60k Fast!

Less than two months into 2021, the price of bitcoin has risen 95.4%.

Earlier this week BTC smashed through 50k and is headed towards 60k just as fast. The price is currently trading at 57k as of press time up 60% this month alone. Along with BTC’s meteoric rise quite a few altcoins are going along for the ride.
Some are saying the astonishing rise of BTC’s price to the tremendous demand from buyers looking to hedge against inflation as governments keep spending and central banks keep printing money trying to keep their economies going through the pandemic.
Looking to trade cryptocurrencies? You can trade BNB on Binance by clicking here

Based in the United States and want to trade via Binance.US? Click here to sign up now!

Continue Reading

Adoption

Cardano founder, Charles Hoskinson speaks on the future of Bitcoin and taking profits

Cardano ADA Cryptocurrency Coin

Charles Hoskinson has always been a huge advocate for decentralized finance and building a network that could provide solutions to the problems with our current financial and banking systems. In this recent AMA Charles speaks out on his view about the issues that Bitcoin faces as well as reminding everyone that cryptocurrency isn’t all about taking profits.

Despite Charles Hoskinson open criticisms of Bitcoin he does say:

“I would still be working on Bitcoin if Bitcoin could evolve”

Continue Reading

TRADE CRYPTO

BUY BTC/LTC/ETH

Trending