Bitcoin Loses Ground After Short Relief Rally

0
Bitcoin Loses Ground After Short Relief Rally
Leamsii / Pixabay

Bitcoin loses ground after short relief rally, as speculation mounts over central bank digital currencies

Get Our Activist Investing Case Study!

Get the entire 10-part series on our in-depth study on activist investing in PDF. Save it to your desktop, read it on your tablet, or print it out to read anywhere! Sign up below!

Q2 2021 hedge fund letters, conferences and more

After A Short Relief Rally Bitcoin Falls By 1.6%

"Bitcoin has lost ground again after a short relief rally, as inflation fears linger and prospective competition from central bank digital currencies comes into sharp focus. Bitcoin fell by over 24 hours, dropping back below $32,000 dollars, with the fresh crypto sell-off also pushing down the price of Ethereum by 2%, Dogecoin by 3% and Cardano by 1.7%.

Macro Hedge Funds Surge To 100%+ Gains As Rest Of Industry Struggles

reports 1664895939The biggest winners of this year’s market turmoil are macro hedge funds. Hedge funds on average are down 4% in 2021, according to data group Hedge Fund Research. However, macro funds were up around 8% on average during the first half of the year. Leading the pack is Crispin Odey, whose flagship Odey European fund Read More

The edge away from crypto wallets comes as speculation surges about the impact of central banks around the world launching rival digital currencies.

The chair of the Federal Reserve Jerome Powell said the introduction of CBDCs would undermine the case for crypto currencies and stable coins. His comments in a special US congress appearance came as the European Central Bank revealed it is forging ahead with an investigation into the benefits of a digital euro which would complement cash.

This week the Bank of England also stressed the need for regulators to keep up with digital coin developments, and ensure the public have the confidence and trust to use digital money. But in contrast to the Fed, it flagged stable coins as systemically important, indicating that these are likely to be a central feature in the monetary system going forward.

Global Payments System Revolution

The revolution in the global payments system is firmly on central banks’ radar given how critical its smooth running is to financial stability.

In its report today the financial conduct authority highlighted that 2.3 million people in the UK hold crypto assets, warning that they risk losing all their money due to their highly volatile nature, particularly as these are assets the watchdog does not regulate. With the number of people piling into crypto rising by a fifth over the year, and around 14% of people borrowing money to speculate, regulators are clearly concerned that some of the most financially vulnerable are gambling with money they can’t afford to lose.

The chatter on social media platforms and potential for fraud and scams is rising, with so many people desperate to emulate tales of getting rich quick.

The financial watchdog is currently focused on trying to establish fresh strategies to encourage fewer people to indulge in risky investments. It is clear greater regulation of the crypto world is on its way.”

Article by Susannah Streeter, senior investment and markets analyst, Hargreaves Lansdown


About Hargreaves Lansdown

Over 1.6 million clients trust us with £132.9 billion (as at 30 April 2021), making us the UK’s largest digital wealth management service. More than 98% of client activity is done through our digital channels and over 600,000 access our mobile app each month.

Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at)www.valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver
Previous article How to Build and Protect Your Wealth: Financial Planning Tips for Medical Professionals
Next article These Are The Top Ten Cryptocurrencies With The Highest YTD Return

No posts to display