Tag: Fed

Bitcoin price, Trump or How Do You Understand All of This

3 min read

Bitcoin has been growing of the new week after a drowsy weekend. The Chairman of the Federal Reserve revealed the chance of Bitcoin becoming the globally dominant currency. Hence, the current reserve assets could be worthless, admitted Fed.

Let’s see first how Bitcoin performed in the past days. The Bitcoin price showed bullish signs this past week. But why now seems all of that real energy has vanished once again. What can we expect in the following days?

Take the quiz at the end!!!

Bitcoin made a drastic turnaround from where it was six months ago. At that time the prices pined around $3,500. But enthusiasm over broader mainstream approval has increased the hum about cryptocurrencies. The result was: the prices have the flight.

John McAfee made a bet on July 17th, 2017: One single Bitcoin would be worth $ 500,000.00 in three years. Later he made some corrections and foretold $ 1 million by the end of 2020.

Is that prediction really reasonable?

Bitcoin price is about $11,300. To gain $1 million by the end of 2020, BTC should have a permanent-growth rate of almost $ 0,5 per day starting from the price level $2, 250 how much it was in 2017. on McAfee’s date of prediction.

Yes, Bitcoin price so often changes the value so the 0,5% doesn’t sound too much. The charm of exponential increase.

Bitcoin is limited. There is 21 Million BTC. Period. You see, we have more millionaires on this planet. There are not enough Bitcoins for each of them.

The principle of how Bitcoin rise is simple.

The more people are buying it, the price is higher.

The market capitalization of bitcoin is still small. Of course, if we make a comparison to the stock market or gold for example.

There is no need to buy one Bitcoin as a whole. You can buy a part of a bitcoin, so-called bits. And what will happen? The more people are buying, the price will grow more.

There is no need to buy one Bitcoin as a whole.

You can buy a part of a bitcoin, so-called bits. And what will happen? The more people are buying, the price will grow more. Moreover, the popular fiat banking system is too complicated and you will find that bitcoin is a lot more practical. The price will jump again.

Bitcoin against the politicians

U.S. President Donald Trump on Thursday said he’s “not a fan” of cryptocurrencies. Moreover, he recommended that Facebook may need a banking license if the company wants to launch Libra. Sic!

May any president have an influence on crypto?

Well, Bitcoin doesn’t care about their opinions.

Anyway, Mr. Trump tweeted:

Take the quiz at the end of the post!!!

… and about Facebook’s Libra

In the past 24 hours, the price of Bitcoin rose 7,9%.

The other cryptocurrencies recorded even higher increases. Ethereum rose nearly 8% and Monero more than 13%.

And BTC against the dollar marked changes that should cause the upsets. According to CoinDesk: it touched an unusual of $12,033.74 and a low of $11,142.79. Who won’t be worried?

Bitcoin did not respect Trump’s anti-crypto comments.

We saw the last trading! After Trump’s tweets, the BTC price was higher for 1% in one day, the price was $11,447.

Even more, crypto doesn’t care about the Fed’s opinion.

Federal Reserve Chair Jerome Powell talked largely about Facebook’s Libra.

Powell accented that before proceeding, Facebook needs to address “serious concerns” in regards to “privacy, money laundering, consumer protection, and financial stability.”

Same old words!

The bottom line

What we can say about the future of Bitcoin price is that there are some chances to drop below $11,000. The crypto market is well-known as volatile. But it can rise to $16,000 also to the end of July.

This old guy is smarter than we think and no one should underestimate a possibility to surprise us. Moreover, many traders expect exactly that. The price to go up.

12th July 2019
Growth fears pushed Russell 2000 into Bear area

1 min read

Russell 2000 – That is going to say, we’re about the way to a bear market.

Russell 2000 is pushed into the Bear territory by growth fears!

Looks like the Bear Market is already here.

What happened?

Small American stocks have tumbled into a big hole, reflecting mounting slowdown fears on Wall Street, reported CNN.

The Russell 2000 fell into the hole, in the middle of a wave of selling. The major market indexes are in red.

The DJIA, S&P 500 and Nasdaq are all well into correction territory. They are down more than ten percent from their previous highs.

Russell 2000 – Market indexes are red!

The Russell 2000 index of small-cap stocks dived into a bear market on Monday. It happened after a 20% decline since hitting a record high in late August.

That marks the first bear market for the index since the downturn that spanned June 2015 to February 2016, according to Bespoke Investment Group.

The media’s conclude that investors are scared by the Federal Reserve rate hike.

“Investors are showing real caution about the pace of economic growth for the US next year,” said Nicholas Colas, co-founder of DataTrek Research. “Confidence is falling,” added he for CNN.

The index contains 2,000 smaller companies that do little business overseas. As such making them highly exposed to swings in the domestic economy.

The index is viewed as a barometer for confidence in American growth.

Small-cap stocks sometimes lead the broader market. That’s the reason for making a Russell 2000 bear market a potentially ominous event.

It’s the fear of a recession and that is very real.

How the Fed made this situation as real?

The Fed’s job is monetary policy. They have to keep unemployment low and inflation under control.

Trade war worries

About 40% of the debt held by Russell 2000 companies is floating-rate, according to Peter Boockvar, chief investment officer at Bleakley Advisory Group. The cost to service that debt has climbed in tandem with the Fed’s two-year of raising interest rates.

“That’s potential stress if growth is slowing in the United States, which the markets are betting on,” said Boockvar.

Moreover, about one-third of Russell 2000 companies are unprofitable.

That number could rise if the US economy gets stuck.

It looks that the odds of a US recession over the next 12 months have climbed to about 30%. That would be the highest level during the nine-year economic expansion.

The Russell 2000 climbed 13% last year. The investors bet that US-focused companies would avoid getting caught in the middle of trade wars. Multinational companies like Nike (NKE), Apple (AAPL) and Boeing (BA) dominate the S&P 500 and Dow.

This was a safe haven. But it ended up being a very crowded trade. And everyone knows what happens to a crowded trade when the tide goes out.

The idea that smaller companies would avoid the fallout of the crackdown on trade was flawed. Now it is obvious.

The reason is that Small-cap stocks do business with big-cap stocks.

Markets were in the midst of the longest bull market in American history. This began in March 2009. But the bull has been stumbling pretty badly of late, leading some analysts to investors to wonder whether this is the start of a bear market.
It is commonly measured by a 20% fall from a previous peak.

After a brutal decline in US stocks in October, both the S&P 500 and Dow Jones Industrial Average slipped into the red for the year. That caused erasing all the gains made in 2018.

The benchmark S&P 500 has fallen more than 9% from it’s the all-time peak at the same time. So, stocks continue to slide.
That is going to say, we’re about the way to a bear market.

Risk Disclosure (read carefully!)

18th December 2018