More Star Athletes Back Bitcoin
Klay Thompson, shooting guard for the Golden State Warriors, has become the latest star athlete to endorse bitcoin by taking part of his paycheck in cryptocurrency.
The NBA star joins Detroit Pistons guard Cade Cunningham, Green Bay Packers quarterback Aaron Rogers and LA Rams wide receiver Odell Beckham Jr to be paid in bitcoin.
Im with bitcoin because I believe its the future of money, he tweeted.
Bitcoin Price Climb Continues
The price of bitcoin is continuing to recover from its worst start to a year since 2012, but its doing so at a crawling pace.
The cryptocurrency rose by less than 2 per cent over the last 24 hours to return above $42,000, though its still down more than 8 per cent week-on-week.
Other leading cryptos have seen an even greater mid-week bounce, with Ethereum , Binance Coin and Solana all rising in value by between 3-5 per cent. The biggest gains came from Avalanche , which rose nearly 10 per cent to reach close to $100 per coin.
Why Did The Crypto Market Crash
Following Teslas decision, the market was already experiencing a turbulent time before China announced a clampdown on cryptocurrencies which saw prices plummet.
China banned all of its banks and financial institutions from offering clients any services involving cryptocurrencies, which included coin offerings and transactions.
The countrys financial industry bodies also warned against speculative trading.
The National Internet Finance Association of China, the China Banking Association, and the Payment and Clearing Association of China released a combined statement.
It read: Recently, cryptocurrency prices have skyrocketed and plummeted, and speculative trading of cryptocurrency has rebounded, seriously infringing on the safety of peoples property and disrupting the normal economic and financial order.
China has since ordered Bitcoin mining in its Sichuan province to shut down completely and told banks to stop supporting crypto transactions, in a latest wave of restrictions on cryptos which have seen prices tumble.
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What Do We Know For Sure
While it’s difficult to say which, if any, digital currencies will see dramatic price gains in 2021, we can say with confidence that cryptocurrency is not going away anytime soon. Blockchain, the underlying technology behind many cryptocurrencies, has spread far outside of the digital currency industry and is likely to see new applications this year. Governments and regulators will continue to grapple with how to best facilitate and control digital tokens.
The heyday of cryptocurrencies may have come and gone, but it’s also possible that the crypto market still has a lot of upsides to go. We do know one thing for sure: cryptocurrencies were once positioned to upend the entire financial system. That kind of noise doesn’t disappear overnight, so expect to hear from cryptocurrencyor at least its number-one fansfor another year at least.
Why Is Crypto Down Today
Bitcoins price enjoyed a bullish rise to near $70,000 in value in early November as investors hoped to see the cryptocurrencys $1 trillion market cap remain firmly in place ahead of a volatile trading period.
But its plummet below $50,000 came in late 2021 as US and UK markets struggled to contend with renewed concerns over Covid-19, the Omicron variant and high inflation.
The latest fall in Bitcoin price came as a sharp sell-off ensued on the Nasdaq index on Wednesday , with the US central bank poised to lurch away from its coronavirus pandemic monetary policies with interest rate hikes and a potential cut to securities in order to shrink its balance sheet.
500 points were wiped from the tech-heavy Nasdaq index following the release of minutes from the US Federal Reserves latest meeting in December in which expectations for a reduction in policy accommodation shifted forward notably.
The Nasdaq dropped 500 points and was trading down by approximately 3.34% to close at 15,100.17 on Wednesday.
The impact was also felt across other US stock indexes, with the Dow Jones Industrial Average trading down by approximately 1.07% and the S& P500 was down by 1.94% on Wednesday.
But the cryptocurrency also took a major hit as crypto mining operations in Kazakhstan, which have proliferated since China outlawed cryptocurrency mining in the country, went down in a nationwide internet outage this week.
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Where Is The Cryptocurrency Industry Headed In 2021
Bitcoin, as of December 2020, has experienced a steady rise to reach new all-time highs, breaking through $20,000 per BTC, but it was not always so steady.
To get a sense of just how troubling the market had been, just look to 2018: Heading into 2018, Bitcoin traded for close to $13,500 after reaching an all-time high of $19,783.06 in December of 2017. It subsequently dropped as low as $3,400, a loss of about three-quarters of its valueand other digital currencies weren’t faring much better at the time. Ethereum , for example, fell from an early-year high of $1,300 to just $91 by December 2018 before rallying back to over $450 by the end of 2020.
Cryptocurrencies like Bitcoin and Ethereum have indeed proven resilient. Investor interest, both retail and institutional, in digital currencies has risen dramatically in recent months. Many early investors who were eager to make gains from the “cryptocurrency craze” have since moved on to other ventures, leaving a smaller group of stalwart HODL-ers behind. But there are still reasons to believe that the cryptocurrency industry has some fight in it left.
Investors are again asking: how high digital coins could fly? And Bitcoin indeed has risen back to all-time highs as of December 2020, reaching over $23,625 and Ethereum to nearly $700. Now, looking into the end of 2020 into 2021, the better question might be how this space will adapt in order to survive.
Bitcoin Price Bounces As Experts Predict Relief Rally’
The price of bitcoin has managed to hold above $41,000, after its brief venture into the sub $40,000 territory earlier today. Where it goes from here will depend on a number of factors, but its short-term direction could ultimately determine the overall market sentiment and therefore future trajectory over the coming weeks.
Weve heard from a couple of crypto experts, who are tentatively predicting that bitcoin could recover some of its losses, at least in the short term.
Heres what Marcus Sotiriou, analyst at the UK based digital asset broker GlobalBlock, and Mike Novogratz, CEO of Galaxy Digital, had to say:
Despite the crypto market being in oversold territory, it is widely impacted by global markets and economic conditions. Plans declared by the Federal Reserve for rate hikes in 2022, as well as reducing the rate of monthly bond purchases, have contributed to bitcoins sell off so far.
On Wednesday, US inflation data will be released. The market expects the consumer price index to rise 7.1 per cent for the year through December and 0.4 per cent over the month. If the figure released is larger than expected we can expect further sell pressure for bitcoin, as the markets are forward-looking and high inflation leads to more action from the Federal Reserve to control it. I think due to the selling we have seen in recent weeks, the downside is limited in the short term, even with higher-than-expected inflation data on Wednesday.
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Where Can You Buy Uniswap
If you are interested in purchasing Uniswap or want to learn more about it, follow this link to Benzinga Money. Our Benzinga Money team has in-depth educational content that not only explains the details of the coin itself but also how and where you can purchase it.
Do you want to learn more about trading and be able to analyze your own portfolio of stocks or cryptocurrencies? Consider signing up for Benzinga Pro. Benzinga Pro gives you up-to-date news and analytics to empower your investing and trading strategy. You can follow the link here to visit.
How Do I Protect Myself
If youre looking to buy a cryptocurrency in an ICO, read the fine print in the companys prospectus for this information:
Who owns the company? An identifiable and well-known owner is a positive sign.
Are there other major investors who are investing in it? Its a good sign if other well-known investors want a piece of the currency.
Will you own a stake in the company or just currency or tokens? This distinction is important. Owning a stake means you get to participate in its earnings , while buying tokens simply means you’re entitled to use them, like chips in a casino.
Is the currency already developed, or is the company looking to raise money to develop it? The further along the product, the less risky it is.
It can take a lot of work to comb through a prospectus the more detail it has, the better your chances its legitimate. But even legitimacy doesnt mean the currency will succeed. Thats an entirely separate question, and that requires a lot of market savvy.
But beyond those concerns, just having cryptocurrency exposes you to the risk of theft, as hackers try to penetrate the computer networks that maintain your assets. One high-profile exchange declared bankruptcy in 2014 after hackers stole hundreds of millions of dollars in bitcoins. Those arent typical risks for investing in stocks and funds on major U.S. exchanges.
» Learn more: What is bitcoin?
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How To Fix Norton Crypto Mining Not Working Problem
Whenever a member spends cryptocurrency, the digital ledger is updated by debiting one account and crediting the other, much like physical currencies.
The disadvantage of digital money, on the other hand, is that digital platforms can be readily manipulated.
Only verified miners can update transactions on Bitcoins distributed ledger, as a result.
Miners are now tasked with the additional task of preventing double-spending on the network.
In the meantime, new coins are created to compensate miners for their efforts in maintaining the networks security.
The mining process is critical for validating transactions since distributed ledgers lack a centralized authority.
As a result, miners are motivated to safeguard the network by participating in the transaction validation process, enhancing their chances of earning newly produced coins.
A proof-of-work consensus system has been implemented to ensure that only confirmed crypto miners can mine and validate transactions.
In addition, POW protects the network against outside threats.
Nortons strategy could be a tough sell even if you had better mining hardware and lower electricity.
It deposits your Ethereum into your Norton Crypto wallet, but youll have to cash it out if you want to use it or swap it for fiat currency right now, the only way to do so is to transfer it to a Coinbase account.
However, the Ethereum network will charge you a transaction cost if you do so.
Gensler Avoids Ethereum Security Question
Gary Gensler has shown his reluctance to clarify Ethereums regulatory status again.
In a Monday interview with CNBC Squawk Box, the SEC chairman discussed securities laws surrounding cryptocurrencies with Andrew Sorkin. When Sorkin challenged him about whether he thought Ethereum could be classed as a security, he swerved the question, remarking that he would not speak on a specific crypto asset. Can you explain your view of whether Ethereum is a security or notI think youve actually suggested it isnt, but then while you believe that Ripple is a security, and I know theres an ongoing lawsuit related to Ripple, but could you speak to the Ethereum issue? Sorkin asked.
Im not going to speak to any one matter, Gensler told CNBC. He added that the SEC doesnt get involved in public forums talking about any one project.
Genslers public stance on the number two crypto marks a stark contrast to his predecessor Jay Clayton, who stated that Ethereum was not a security during his tenure at the helm of the SEC.
Unfortunately, way too many of these are trying to say well, we are not a security, we are just something else. I think the facts and circumstances suggest that they are investment contracts, they are securities, and they should register.
Disclosure: At the time of writing, the author of this piece owned ETH and other cryptocurrencies.
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Why Is The Crypto Market Down
Current market scenario is a result of multiple factors including – china crackdown on crypto, tax provision in US infrastructure legislation and panic selling. This entire irregularity boils down to one single point, that is, investors going by the social media word instead of the proper project analysis.
What Are Cryptocurrencies
Before we take a closer look at some of these alternatives to Bitcoin, lets step back and briefly examine what we mean by terms like cryptocurrency and altcoin. A cryptocurrency, broadly defined, is virtual or digital money that takes the form of tokens or coins. While some cryptocurrencies have ventured into the physical world with credit cards or other projects, the large majority remain entirely intangible.
The crypto in cryptocurrencies refers to complicated cryptography that allows for the creation and processing of digital currencies and their transactions across decentralized systems. Alongside this important crypto feature of these currencies is a common commitment to decentralization cryptocurrencies are typically developed as code by teams who build in mechanisms for issuance and other controls.
Cryptocurrencies are almost always designed to be free from government manipulation and controlalthough, as they have grown more popular, this foundational aspect of the industry has come under fire. The cryptocurrencies modeled after Bitcoin are collectively called altcoins, and in some cases shitcoins, and have often tried to present themselves as modified or improved versions of Bitcoin. While some of these currencies may have some impressive features that Bitcoin does not, matching the level of security that Bitcoins networks achieve largely has yet to be seen by an altcoin.
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First Spot Bitcoin Etf
A big development crypto investors are on the lookout for in 2022 is approval of the first spot bitcoin exchange-traded fund in the United States.
Although the Securities and Exchange Commission greenlighted the launch of ProShares’Bitcoin Strategy ETF this year, the product tracks bitcoin futures contracts rather than giving investors direct exposure to the cryptocurrency itself.
Futures are financial derivatives that oblige an investor to buy or sell an asset at a later date and for an agreed-upon price. By tracking futures prices instead of bitcoin itself, experts say, ProShares’ ETF could be too risky for novice traders, many of whom are invested in crypto.
“The Bitcoin Futures ETF that launched this year has been widely regarded as not very retail-friendly given the high costs involved of rolling over contracts which amounts to around 5-10%,” said Vijay Ayyar, vice president of corporate development and global expansion at crypto exchange Luno.
“Increasing pressure/evidence points to a Bitcoin Spot ETF being approved in 2022 mainly because the market is now large and mature enough to support one.”
Bitcoin Setting The Pace
Investors should look no further than the paramount crypto, Bitcoin, which appears to have achieved some stability over $35,000 in recent days. That being said, BTCs next moves will be crucial.
Since the price of BTC dropped below $40K in mid-May, the price of the asset has oscillated between the $32,000-$38,000 range.
In doing so, BTC has never quite managed to build enough support to recapture the $40,000.
Analysts are pointing to a key level of support at $35,000, which if it continues to build, could result in a meaningful and sustained movement toward $40K and above.
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Stablecoins Take The Lead
Stablecoins are digital tokens that are pegged to a fiat currency that act as hedging mechanisms against the potential decline of underlying cryptocurrency collateral pricesand they may just be the industry’s best hope going into 2021.
Stablecoins may see growth next year for two reasons: one, a result of the long-term instability of non-centralized tokens and two, the current leader in the stablecoin industry, tether, is positioned to be dethroned.
As one of the earliest stablecoins to reach the mainstream, Tether has suffered a number of highly publicized growing pains while the sub-industry developed. Other stablecoins have already entered the field, aiming to wrench away its dominance.
Who Should Use Cryptocom Vs Coinbase
First-time traders who dont understand the terminology and process may prefer the simplicity of Coinbase along with the educational materials provided. Its an excellent starter platform, and once investors are familiar with trading, the Coinbase Pro app is a free upgrade and offers cheaper fees.
However, if you have a basic understanding of cryptocurrency and want to stake CRO, you can take advantage of many benefits on Crypto.com. The more an investor stakes, the lower the costs. Even without staking CRO, its less expensive to trade on Crypto.com. Furthermore, youll have access to several Visa cards and gift cards that you can use to earn and spend crypto.
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Is The Crypto Crash Over Or Just Beginning
- Volatility is nothing new to the crypto market and investors have learned to adapt to a bumpy ride.
Monday, 07/06/2021 | 10:06 GMT-0
The crypto market has had a forgettable past month, with Bitcoin falling nearly 50% in May alone.
Of course, such moves in the crypto market are nothing new, especially for investors who have braved the elements of the 2017 run up and subsequent crash.
A more pressing question in the immediate future is whether last months crash is a temporary construct or signs of a deeper malaise.