Category Archives: Cryptocurrency
Cryptocurrency slump has flooded the market with Rolex and Patek – Business Standard
The collapse in cryptocurrencies is easing supply of the most sought after watches on the second-hand market, depressing prices for hard-to-get Patek Philippe and Rolex models.
The supply of trophy watches such as the Rolex Daytona or Patek Nautilus 5711A is now much larger, online-watch trading platform Chrono24 said in an emailed statement.
The recent swoon in cryptocurrency valuations has directly impacted pricing of luxury watches from brands like Rolex and Patek Philippe, said the company, which is based in Karlsruhe, Germany, and has more than half a million watches listed for sale on its website.
The price decline for the most sought after models is the latest indication that the once soaring second-hand luxury watch market is starting to lose pace.
Surging valuations for crypto currencies had minted a new class of luxury buyers, leading to an unprecedented price increase for models particularly from brands like Rolex, and Audemars Piguet.
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Cryptocurrency slump has flooded the market with Rolex and Patek - Business Standard
Expert Tells Investors To Be Careful In The Cryptocurrency Rally, Whys That? – NewsBTC
A crypto influencer, Alfonso Peccatiello, expressed his thoughts as regards the recent cryptocurrency rally. He stated that the current crypto rally is not a yardstick for investors to raise their hopes too high. This was revealed following the increase in certain digital currencies such as Bitcoin and Ethereum in the last 24 hours.
A recent crypto market watch showed a 24-hour price appreciation of Bitcoin of more than 9%. Currently, BTC trades at a price of over $23,000.
Meanwhile, Ethereum, the second largest digital currency, has also experienced a rise in its price. Its 24 hours price increase got over 13%. Presently, the token trades at a price above $1,600.
The surge in the prices of these cryptocurrencies followed the Feds decision to hike its interest rate by about 75 bps.
A renowned crypto expert and author of The Macro Compass, Alfonso Peccatiello, gave his thoughts concerning the current crypto rally. According to Peccatiello, the recent digital currency surge should not be a reason for investors to be excited. He stated this, backing it up with an explanation.
Related Reading:Bitcoin Makes Surprise Climb As Fed Discloses 0.75 Point Rate Bump
Peccatiello first admitted that the speech of the Fed chair, Jerome Powell, triggered the rise in the prices of cryptocurrencies. But, there is a need for his speech to be guided. He added that if his speech lacks a backup, it will be a cause for alarm in the crypto market.
Furthermore, he uncovered his portfolio, stating that he has little interest in risky assets. One of such risky assets is digital currencies.
Drawing from Peccatiellos speech, the increase in the prices of these digital tokens commenced after Powells statement. He added that Powell stated a relationship between inflation and neutral interest rates.
Powell also cited that the Feds operations will base more on data. This results from the recent hikes of about 75 basis points.
According to Peccatiello, the Federal Reserve would be a dreadful zone if it repeats its interest rate hike over time.
Then, Powell made another statement, which happens to be a good cause for concern. He cited that there is another alarming increase that could be the trigger for the next meeting of the FOMC, scheduled for September.
Related Reading |Why Cardano (ADA) May Breakout In A Bull Run To $1
His final statement pointed to the fate of digital currencies and their yields. He revealed that there is a need for the Fed to carry out an aggressive tightening. Peccatiello stated that this action is necessary to prevent the decline of actual yields.
Moreover, with reduced yields comes low performance in the crypto market and other risk-driven assets.
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Expert Tells Investors To Be Careful In The Cryptocurrency Rally, Whys That? - NewsBTC
CoinFLEX: Amid liquidity crisis, the cryptocurrency exchange had this to say – AMBCrypto News
In a recent announcement dated 29 July, co-founders of CoinFLEX, Sudhu Arumugam and Mark Lamb, provided an important update. The updated surrounded what the cryptocurrency exchange had been up to manage its current liquidity crisis in the last week. This update came a month following the suspension of withdrawal on the exchange as a result of a liquidity crisis. The organization cited extreme market conditions and continued uncertainty involving a counterparty.
In the new announcement, CoinFLEX provided an update on its staff reduction. It also mentioned intentions to launch new products and the distribution of the CoinFLEX composite.
According to the blog post, CoinFLEX informed users that in the last week that the exchange went through the arduous process of letting some of its staff members go.
The staff cuts and non-staff costs that we have made will reduce our cost base by approximately 50-60%, the exchange noted.
Hinting at a possibility of a future acquisition, Arumugam and Lamb stated that,
We will monitor costs to ensure we operate as efficiently as possible and scale as volumes come back. The intention is to remain right-sized for any entity considering a potential acquisition of or partnership opportunity with CoinFLEX.
The exchange also noted stated plans to resuscitate its dying business and regain customer trust. It further intends to distribute rvUSD, equity, and FLEX Coin referred to as CoinFLEX Composite to depositors who have assets in the exchange
According to the exchange:
We continue working with lawyers and the significant creditor group on the details around the distribution of the CoinFLEX Composite (inclusive of rvUSD, equity, and FLEX Coin) and expect to have numbers around this next week so that we can put this to a vote from all depositors as soon as possible thereafter.
In addition, CoinFlex informed aggrieved depositors that in the next week, it plans to offer the trading of locked balances versus against unlocked balances. According to the announcement, with an understanding of the range of CoinFLEX Composite distributions a depositor is entitled to, they can decide if they desire to place orders of unlocked assets against locked assets.
To be aware of all, or as accurate a range, of the CoinFLEX Composite you are likely to receive. Everyone needs to know the range of their CoinFLEX Composite distributions to have all the necessary information to decide if you want to place orders of unlocked versus locked assets. The estimated range of any further normal distribution that will be made available alongside the issuance of the CoinFLEX Composite, CoinFLEX informed its depositors.
A month after withdrawal was suspended on the exchange, CoinFLEXs FLEX logged a 96% decline in price. At press time, the token exchanged hands at $0.162868 at a 63% loss in the last 24 hours.
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CoinFLEX: Amid liquidity crisis, the cryptocurrency exchange had this to say - AMBCrypto News
Sam Bankman-Frieds FTX is in talks to buy crypto exchange Bithumb, continuing its acquisition spree – CNBC
Vidente, the owner of South Korean cryptocurrency exchange Bithumb, said on Tuesday it has held discussions about a possible sale of its stake to FTX. Talks of another acquisition are part of FTX and its founder Sam Bankman-Fried's (above) aggressive acquisition approach amid a major downturn in the cryptocurrency market.
Stefani Reynolds | Bloomberg | Getty Images
Vidente, the owner of South Korean cryptocurrency exchange Bithumb, said on Tuesday it has held discussions about a possible sale of its stake to FTX.
The company said it is reviewing all possible options, including a full acquisition of Bithumb or joint management of the exchange.
However, no specific course of action has been decided on, Vidente said.
Talks of another acquisition are part of FTX and its founder Sam Bankman-Fried's aggressive acquisition approach amid a major downturn in the cryptocurrency market, which has seen billions of dollars in value eviscerated in the last few months.
Last month, FTX signed a deal giving it the option to buy crypto lending company BlockFi at a maximum price of $240 million, significantly lower than the firm's previous $4.8 billion valuation.
Earlier this year, FTX entered into an agreement to acquire Japanese crypto exchange Liquid. If the deal with Bithumb goes through, FTX will gain further foothold in Asia and in particular South Korea, where crypto trading is very popular.
Bithumb is one of South Korea's largest exchanges. At its peak in the last 24 hours, it processed just over $500 million of trades, according to data from CoinGecko.
Cryptocurrency can give back economic ground to African Americans – Washington Times
OPINION:
Crypto-skeptics are taking a victory lap as digital asset prices unwind and layoffs sweep across the sector.
For minority communities across the country, the downturn in the digital currency market is a missed opportunity for financial self-sufficiency. Bitcoin and decentralized finance offer people that have long been denied equal access within the traditional banking system an opportunity to build investment portfolios, carve out a stake for their families in the financialized economy of the 21st century and begin to build intergenerational wealth.
As inflation reaches 9%, gas prices skyrocket, and a recession looms, many African Americans have lost economic ground. This dire economic situation was exacerbated by the pandemic and finds the community looking for financial options. For many, Crypto filled the void.
Many in the Black community understood the significance of this new technology. A recent industry survey shows one-quarter of Black investors own cryptocurrency, compared to just 15% of white investors. Najah Roberts, the African American Queen of Crypto, launched a nationwide financial awareness campaign to educate retail investors about the promise of these new assets. Her campaign, titled The Second Annual Digital Financial Revolution Tour, or DRFT, has targeted 41 urban communities throughout the United States. From Los Angeles to Brooklyn, Las Vegas to Boston, Roberts DRFT has sought to positively transform the financial mindset and trajectory of economically disenfranchised and middle-income people of color.
One would expect Americas leading financial institutions with their grandiose pronouncements about promoting equity and inclusion in finance to lament cryptos receding value and the impact it will inflict on minority investors. Instead, it appears the big banks are cheering it on.
Feigning concern for average-Joe investors, big banks and their financial regulators are mobilizing to undermine public support for cryptocurrencies. Regulatory bodies from the Securities and Exchange Commission to the Federal Reserve have managed to suppress responsible cryptocurrency businesses from gaining a foothold in the space while allowing speculators and fraudsters to proliferate.
For Americans seeking alternative investment options, regulators failure to approve more sound businesses to operate in the crypto market has driven investors into the hands of irresponsible actors or else, back to the relative safety of the devil they know, in the form of traditional, centralized finance that callously left behind American communities for decades.
Either way, its the banks that benefit: Consider that while Main Street investors are taking it on the chin, many Wall Street firms are sitting pretty. Some are even raking in profits by betting against companies that trade in cryptocurrency. As The New York Times recently put it, In the great cryptocurrency blood bath of 2022, Wall Street is winning.
With cryptocurrency prices trending lower, this should be a time for regulators, industry executives and thought leaders to reflect on the failures that led to this painful market downturn. Instead, many are seizing the opportunity to throw dirt on an existential threat to the status quo.
Analysts from elite financial firms and academic institutions have been making the rounds to mainstream media outlets to trumpet the apparent demise of cryptocurrencies. The tide has gone out in crypto, and were seeing that many of these businesses and platforms rested on shaky and unsustainable foundations, Lee Reiners, a former Federal Reserve official and frequent crypto-skeptic, tells the Times.
Of course, the same could have been said of big banks whose reckless behavior culminated in the global financial collapse the same banks that received an unprecedented bailout at the expense of the taxpayer; whose alumni now stock advisory committees at institutions like Duke Law Schools Global Financial Markets Center, which Reiners runs.
Theres no doubt that speculation within crypto markets went too far, and that a correction is healthy. There are plenty of reasonable voices calling for a more responsible regulatory framework that will allow the nascent industry to thrive. These advocates offering constructive criticism stand in stark contrast to the perma-bear crypto-skeptics more interested in reflexive recriminations than needed reforms.
An expansion of cryptocurrency education can help promote financial literacy and ensure that responsible players win out in the struggle for cryptos future. DFRT is one of several efforts seeking to educate the public about the responsible use of cryptocurrency technology.
CoinAgenda, a global conference series that connects blockchain and cryptocurrency investors with startups, and BitAngels, a network of bitcoin and blockchain investors, plan to convene conferences in Las Vegas and Puerto Rico later this year to promote these aims. The Congress of Racial Equity encourages these efforts to bolster Americans understanding and awareness of crypto
Those piling onto the putdown of the cryptocurrency industry should consider who is being hurt most by the bursting of the bitcoin bubble. Anyone listening to them should consider who stands to benefit from it.
Niger Innis is the national chair of the Congress of Racial Equality.
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Cryptocurrency can give back economic ground to African Americans - Washington Times
Apple and Google grilled by legislators over recent cryptocurrency app-driven thefts – ConsumerAffairs
Photo (c) Busakorn Pongparnit - Getty ImagesPoliticians say theyve had enough of all the cryptocurrency scams that have robbed American investors of billions of dollars over the past few years. This week, theyve decided to scrutinizeApple and Google because they feel those companies arent doing enough to rein in fraudulent cryptocurrency apps.
After the FBI issued a warning about fraudulent cryptocurrency apps stealing more than $30 million from investors over the course of a year, Sen. Sherrod Brown (D-OH) and his Senate Banking Committee questioned Apple and Google officials to find out why those apps ever made it to market.
In letters to Apple CEO Tim Cook and Google CEO Sundar Pichai, Brown asked them to explain how their companies review and approve cryptocurrency trading and wallet apps that they offer on their app stores.
While firms that offer crypto investment and other related services should take the necessary steps to prevent fraudulent activity, including warning investors about the uptick in scams, it is likewise imperative that app stores have the proper safeguards in place to prevent against fraudulent mobile application activity, Brown wrote.
In particular, Brown pointed to one situation in which cyber criminals defrauded at least two dozen investors by creating a mobile app that used the name and logo of a real trading platform. After 28 investors downloaded the app and deposited some $3.7 million in cryptocurrency into digital wallets, they couldn't withdraw the funds from their accounts and essentially kissed their deposit goodbye.
Brown and Senate Banking Committee asked the two tech CEOs to provide answers to the following points:
1. Describe the review process your company takes before approving crypto apps to operate in each companys app store.
2. Describe the steps the app stores take to prevent cryptocurrency apps from circumventing app store policies by transforming into phishing apps.
3. Describe all the systems and processes each company has in place for people to report fraudulent apps.
4. Describe all actions each companys app store has taken to alert people about actual or potentially fraudulent activity associated with cryptocurrency investment apps.
5. Since January 2020, have either app stores coordinated or shared any actions or activities with other app stores related to the suspension or removal of fraudulent cryptocurrency apps? If so, please explain.
Apple and Google have until August 10th to get Brown their answers.
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Apple and Google grilled by legislators over recent cryptocurrency app-driven thefts - ConsumerAffairs
How is NFT different from cryptocurrency and fiat currencies – The Financial Express
The value of NFTs revolves around the nonfungible nature of digital assets which is the feature that sets them apart from cryptocurrencies, as NFTs and cryptocurrencies are not the same things. NFT has its own unique set of attributes including creator, size, and scarcity, among others, and therefore can not be interchanged with another asset. Bitcoin (BTC) is a fungible asset, on the other hand. The French startup Sorare, which sells NFTs of football trading cards, has raised $680 million (498 million), as reported by Cointelegraph.
What are NFTs used for?
Art
Programmable art, which uniquely combines creativity and technology, is the most common NFT crypto application. There are currently a number of limited edition works of art in existence. Surprisingly, they make it possible for programmability to alter behaviour in many circumstances. For instance, using oracles and smart contracts, designers may produce artwork that responds to changes in the value of digital assets based on blockchain technology.
Fashion
Blockchain has seamlessly merged into the world of fashion with the promise of advantages for all supply chain participants. The risk of counterfeiting is eliminated since consumers can easily check the ownership information of their goods and accessories online. Users might, for instance, just scan an NFT QR code on a price tag for clothing or accessories.
Gaming
In 2017, CryptoKitties was the first company to release virtual cats on the blockchain and allow users to communicate and conduct transactions with them. The model was so effective that it briefly overloaded the Ethereum network with a large number of transactions.
Sports
The counterfeiting of goods and tickets is among the most important issues affecting the sports sector. Blockchain is the best option for efficiently addressing such issues. The immutability of blockchain technology helps to prohibit the sale of fake tickets and memorabilia.
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How is NFT different from cryptocurrency and fiat currencies - The Financial Express
What is a cryptocurrency? Forbes Advisor Australia – Forbes
With a track record going back over a decade, cryptocurrencies are clearly more than just a fad, but they remain widely misunderstood by many people, with doubts persisting about their genuine value, practical use and long-term application.
There is also considerable concern with regards to their volatile nature and potential for exploitation. According to data from Scamwatch, Australians lost $158 million to investment scams between January and May of this year, the majority of which related to cryptocurrency investments.
In the truest sense, cryptocurrencies are a digital means of exchange which use cryptography as a form of security. However, in recent times, the term cryptocurrency has evolved as a stand-in description for, more broadly, a decentralised financial system (DeFi), a highly volatile asset class that can nose-dive or surge on the back of a Tweet, a space for bad actors to steal vulnerable investors identities and money, and a form of digital payment.
Mainstream investors, as well as Australias financial institutions, are also taking more than a passing interest in cryptocurrencies.
The Commonwealth Bank is trialling crypto trading through its banking app, ANZ recently minted $30 million of Australian stablecoins called A$DC, and National Australia Bank (NAB) is also expected to release its own stablecoin (linked to fiat currency, the Australian dollar) by the end of 2022. However, concern over the safety of cryptocurrencies as an investment class remains front and centre in the minds of financial regulators around the world.
The simple answer is that they arent, outside the confines of blockchain technology, which well come to later.
Even more fundamentally, the current legal status of cryptocurrencies varies considerably from one country to another. While the use of cryptocurrencies is unfettered within the European Union, specific countries, such as Turkey, have banned the payments made in cryptocurrencies.
In Australia, cryptocurrency is legal but largely unregulated. Many crypto-assets and other digital assets are commonly not considered to be financial products so the platforms where you buy and sell cryptomay not be regulated by the corporate regulator, the Australian Securities and Investment Commission (ASIC).
The Australian Prudential Regulation Authority (APRA), which regulates the financial services industry, has plans for a policy roadmap for financial entities engaging in crypto activity. A draft standard is expected in late 2022. However, APRA has been keen to point out that it will not strangle innovation, with chairman Wayne Byres stating in a speech reported by The Australian Financial Review newspaper: Much like our approach to climate risk, its underlying message is primarily one of by all means innovate, but proceed with care and in full knowledge of the risks.
Australias Board of Taxation is also developing a policy framework for the taxation of transactions and assets involving cryptocurrency.
Consumer group, CHOICE, meanwhile, continues to rally for better protections for consumers, some of whom have lost vast sums in crypto scams or through market volatility.
As it stands, enforceable protections in the unregulated cryptocurrency market are somewhere between negligible and non-existent, CHOICE states.
In a submission to the federal government, CHOICE is calling for a regulatory regime to help put an end to consumer harm.
Most cryptocurrencies operate without the backing of an authority, such as a central bank or government. This fundamentally differentiates them from traditional currencies, such as the US or Australian dollar.
Instead of governmental guarantees, the way cryptocurrencies work is underpinned by something called blockchain technology (see below).
Rather than existing as a physical stack of notes or coins, cryptocurrencies are confined to the internet. Think of them as virtual tokens, whose value is determined by market forces generated by the people who want to buy or sell them.
Nowadays, an estimated five thousand cryptocurrencies exist. Bitcoin is far and away the largest, followed by the likes of Ethereum and Tether. The market capitalisation of a cryptocurrency equates to the unit price of a currency, multiplied by the number of units in existence. Even after the crypto meltdown in May of 2022, the market was still valued at about $US910 billion.
Cryptocurrencies can be bought with traditional cash such as Australian dollars and can then be used themselves to buy an expanding array of day-to-day goods and services. Cryptocurrencies have the same value in each country, making person-to-person transfers around the world easier, while negating the issue of exchange rates.
Only a limited number of Bitcoins actually exist cryptocurrencies are likened to a digital form of an asset such as gold, where a perceived store of value is then subject to the laws of supply and demand.
Currently, this is the main appeal of cryptocurrencies: that they are able to be traded on exchanges similar to the way stock market investors buy and sell shares and other commodities.
In essence, a blockchain is a type of database. Blockchain first came to prominence as the technology that underpinned Bitcoin when the cryptocurrency was originally mooted in a paper on peer-to-peer electronic cash systems in 2008.
The paper was credited to Satoshi Nakamoto, thought to have been a pseudonym for either an individual or group of people. Part of the cryptocurrencys design meant that there would only ever be 21 million Bitcoins created.
The blockchain is essentially a public ledger of every Bitcoin transaction that takes place. A record gets distributed across numerous computers and cannot be tampered with or changed retrospectively. According to supporters of cryptocurrencies, blockchain transactions are more secure than traditional payment mechanisms.
New units of currency such as Bitcoin are produced on the blockchain through mining, which requires huge volumes of computing power and thus uses significant amounts of energy. Environmentalists have warned that the proliferation of cryptocurrencies could have a significant impact on global attempts to reduce energy consumption.
The most common places to buy Bitcoin and other cryptocurrencies are specialist exchanges. This includes a range of trading platforms and apps that allow investors to buy cryptocurrencies using either traditional currencies and/or other cryptocurrencies.
To open an account, would-be traders are typically asked to provide passport details, a phone number and an email address. The costs of trading can vary from one exchange to another. Some providers impose a flat fee per trade, while others will charge a percentage of the overall transaction amount.
The performance of cryptocurrencies can be notoriously volatile with roller coaster peaks and troughs. In 2013, an individual Bitcoin was worth just a few dollars. At the time of writing (July 2022) its price stood just above the $US20,000 mark a huge increase on nine years ago, but some way off the all-time high of nearly $68,000 it achieved towards the end of 2021.
Cryptocurrency mining refers to the process of generating crypto and verifying new coins. It is a hugely complex business, one involving reams of decentralised and global computer networks, and, as many environmentalists point out, is carbon-intensive.
In the US alone, it is estimated that Bitcoin mining creates some 40 billion pounds of carbon emissions.
Despite the risks and lack of regulation, Australian investors have embraced cryptocurrency in recent years. A report by US crypto exchange Gemini found almost one in five (18%) of Australians bought digital currencies in 2021.
According to Geminis Global State of Crypto report, 43% of Australians first invested in crypto in 2021, with many citing inflation as a key reason. Furthermore, some 54% of Australians viewed cryptocurrency as a good way to diversify their assets, with 81% choosing to hold their crypto investments for the long term.
Data from trading platform eToro, reveals that more than one quarter of Australian investors aged 18-34 have at least 10% of their portfolios invested in cryptocurrency, making the asset class especially popular among Millennials.
Even before the pandemic upheavals of 2020, and the tumbling in crypto prices that began in November 2021, many experts have questioned their security, practical use and long-term viability. Hence the stark and repeated warnings from financial regulators and consumer groups that people should approach investments in this area with extreme caution.
If more mainstream investment houses dip their toes in the cryptocurrency waters, we may see digital assets improve in value, with their usage normalised and more widespread. How the sector will respond to mooted financial regulation in Australia is also yet to be seen.
In the uncertain times in which we live, it is also possible that the entire crypto concept may prove vulnerable or unsustainable in the face of as yet unforeseen challenges.
To paraphrase the regulators: buyer beware.
This article is not an endorsement of any particular cryptocurrency, broker or exchange nor does it constitute a recommendation of cryptocurrency as an investment class.
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What is a cryptocurrency? Forbes Advisor Australia - Forbes
Why is crypto going up today? Bitcoin price explained and if cryptocurrency could recover from dramatic crash – iNews
Cryptocurrency prices have been rising over the last week, giving investors hope it could recover from its dramatic slump.
Bitcoin was valued at around $23,600 on Wednesday morning up almost 8 per cent in the last 24 hours. It was worth less than $19,400 a week ago.
Crypto prices are up almost across the board. Ethereum has climbed from just over $1,000 to $1,560 over the last week, while the likes of XRP, Binance Coin, Cardano, Dogecoin and Shiba Inu have also seen gains.
But will the upwards trend continue, and what do experts predict for the future?
Cryptocurrency prices have tracked closely with the stock market this year.
Markets have largely been in a downturn, but have rallied across the US, Europe and Asia recently, helping crypto follow suit.
Another likely trigger for the upturn in fortunes is the impending technology upgrade for Ethereum, which has now been scheduled for September.
Ethereum jumped by 12.5 per cent immediately after a developer tweeted that launch is targeted for 19 September.
This upgrade, known as Merge, could be significant for the entire crypto industry, as Ethereum is the blockchain that hosts the majority of Web3s infrastructure, including NFTs and gaming assets. Many see this as the future of digital currency.
Finally, the market may have finished suffering the fallout from multiple recent setbacks, including the collapse of Terras Luna stablecoin and the Celsius lending site.
Despite the recent price rise, experts are not getting too excited about an end to the crypto winter just yet.
Crypto expert Wendy O told NextAdvisor: Were in a full-blown bear market, not a bear cycle. Just because we see some positive price action doesnt mean were out of the clear.
Were currently trading (Ethereum) at $1,500, and in order for me to be super bullish on Ethereum, I would need to see us break above $2,248. Thats a 50 per cent price pump right there.
Joe DiPasquale, CEO of crypto asset manager BitBull Capital, said: While Bitcoin saw positive momentum this week, it remains range-bound when you take a broader view, and is still struggling to cross the $22,000 resistance.
For now, we remain interested in the bottom of this range when it comes to Bitcoins price, and are monitoring for accumulation during this range-bound movement.
Edward Moya, an analyst at broker Oanda, told Barrons there is hope of a continued upturn.
Wall Street is enjoying a positive risk-on mood that is good news for cryptos, he said.
If Bitcoin continues to stabilize here over the next two weeks, the crypto winter could be over. Market positioning became extreme and that could allow for the bottom to have been made if the institutional money buys in.
People invest at their own risk and cryptocurrencies are not regulated by British financial authorities.
All crypto investments are risky, but meme coins like Shiba Inu are particularly volatile, and you should be prepared to lose everything you invest.
The Financial Conduct Authority warned in January: Investing in cryptoassets, or investments and lending linked to them, generally involves taking very high risks with investors money.
If consumers invest in these types of product, they should be prepared to lose all their money.
Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, previously explained the risks to i.
She said: On top of being extremely volatile, most cryptocurrencies are unregulated, which not only adds another layer of uncertainty but also means that investors have little or no protection against fraud.
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Why is crypto going up today? Bitcoin price explained and if cryptocurrency could recover from dramatic crash - iNews
Bitcoin tops $24,000 as hopes of softer Fed action fuel crypto relief rally – CNBC
The world's largest cryptocurrency is down roughly 50% since the start of 2021.
CFOTO | Future Publishing | Getty Images
Bitcoin broke the $24,000 threshold for the first time in more than a month, as hopes of a rate hike less aggressive than feared from the Federal Reserve triggered a relief rally in cryptocurrencies.
The world's biggest cryptocurrency surged as high as $24,047 Wednesday, up more than 8% in 24 hours and trading at levels not seen since mid-June, according to Coin Metrics data.
Traders took comfort from the prospect of softer policy action from the Fed at its next rate-setting meeting.
The effects of tighter monetary policy from the U.S. central bank have weighed heavily on risky assets like stocks and crypto.
Bitcoin is still down roughly 50% since the start of 2021.
"This isn't necessarily the end of the crypto bear market, but a relief rally for Bitcoin is long overdue," said Antoni Trenchev, CEO of crypto lender Nexo.
"Bitcoin is beginning to find its feet after a shaky month, and the next week will be telling," he added.
The U.S. central bank is expected to hike rates again at its next policy meeting, but economists are forecasting a less aggressive increase this time of 75 basis points rather than 100.
Cryptocurrencies were touted as a source of value uncorrelated with traditional financial markets. But as institutional capital poured into digital assets, that thesis failed to materialize once the Fed began hiking interest rates and traders fled equities.
A rally beyond $22,700 means the cryptocurrency has now recovered its 200-week moving average, laying the technical groundwork for a "trend reversal," according to Yuya Hasegawa, crypto market analyst at Japanese crypto exchange Bitbank.
"The market needs a little more assurance for deceleration in the pace of rate hike by the Fed," he said. "Nevertheless, a short-term outlook for bitcoin is bullish and it could go as high as around $29k this week."
Meanwhile, traders are betting that the worst of an intense market contagion caused by liquidity issues at some large crypto firms has likely subsided.
Digital currencies have been under immense selling pressure in the past couple of months, as the collapse of some notable ventures caused ripple effects in the market. Terra, a so-called algorithmic stablecoin, plunged to near-zero in May, setting off a chain of events that ultimately led to the bankruptcies of crypto firms Celsius, Three Arrows Capital and Voyager.
Elsewhere in crypto, ether climbed nearly 5% to $1,609.06, while other so-called "altcoins" were also higher.
The second-largest token is up more than 50% in the past seven days, fueled by optimism over a highly anticipated upgrade to its network known as the "Merge."
Developers now expect the update, which would move ethereum away from environmentally dubious crypto mining to a more energy-efficient system, to be completed by Sept. 19.
"Crypto mining has been highly criticised for contributing to climate change due to its energy intensive nature and as wildfires rage across Europe and the United States, the promise that Ether transactions could be less damaging to the environment has caused a wave of interest," said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.
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Bitcoin tops $24,000 as hopes of softer Fed action fuel crypto relief rally - CNBC