Showing posts with label wall street. Show all posts
Showing posts with label wall street. Show all posts

Crypto's New Wall Street Investors Completely Unbothered By This Past Week's $10,000+ Correction...

Bitcoin Markets

For some analysts, it was plausible to expect a correction after the new all-time high, and it did indeed occur last Monday.

If you've been in the crypto market for awhile, you likely slept like a baby, knowing it was business as usual. Occasionally, people like taking some of their profits, and the smart ones know they'll be back, and at a discount.

But there's a lot of new investors in crypto, now more than ever. The price of Bitcoin fell to $45,000 - a drop from $58,000 in a span of 3 days.

This can understandably scare some people off, and many were wondering if the new investors would be able to resist panic selling and selling everything.  Like many would if stocks took a similar dip. 

However, One Announcement After Another Kept Coming - Showing That The Dip Didn't Slow Things Down At All...

Square acquired an additional 3,380 BTC for $ 170 million, while MicroStrategy made its largest investment so far in bitcoin, at acquire almost 20,000 BTC for $ 1 billion.

The once anti-crypto JPMorgan now recommends investing in bitcoin. And in another sign of rapprochement between the world of cryptocurrencies and the regulatory environment.

SynBiotic SE's announcement of its investment in bitcoin as a hedge against inflation would reveal that interest in the first currency as a safe haven asset could extend to a wide segment of SMEs companies.

Institutional investment firm Stone Ridge, which had already invested $100 million in Bitcoin last October, filed a prospectus with the SEC to list bitcoin as an asset in its diversified investment fund.

I'll wrap this up with one that goes the other way - a company from the crypto world wanting to get in to Wall Street - Coinbase applied to the SEC to be listed on the stock market. It appears they'll be welcomed with open arms. 

So, in short - the bull market continues, picking up right where we left off. 
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Author: Mark Pippen
London News Desk / Breaking Crypto News

Stocks Down, Crypto Up?

Bitcoin has proven this theory over a dozen times already in 2019 when a rough day for the traditional markets were met by bull runs of some of the top cryptocurrencies. 

But with an asset as new and unpredictable as Bitcoin, this will need to stay true for bit longer to really convince traditional investors that this is a reliable hedging method, like it is with gold.

Gold which has skyrocketed even in the worst, long term economic recessions, while cypto has only proven itself as something to turn to for relief on a bad day.

However, one advantage over gold is emerging - when stocks go up, Bitcoin appears to be unaffected, while gold typically declines in value when the rest of the economy is doing well.

While crypto is looking like the perfect hedge for short term investments, the big question remains - would people really turn to crypto in a serious economic downturn, one lasting months or longer? Or, is what we're seeing only because the bad days on Wall Street really aren't that bad?

Still, even if investors wouldn't turn to crypto to get through a bad year, if it continues to help them get though bad days, we can expect a lot more to begin implementing this strategy! 

Video courtesy of CNBC

Ethereum Hits Wall Street - ETH Trust Will Open On OTC Markets, Making It Easier Than Ever For Stock Traders To Buy...

The Ethereum Trust created by Grayscale isn't new, it's been around since 2017 - what's new is how easy it will be for everyday investors to get into.

Previously, investors would need to be accredited clients of Grayscale (the company that offers it) and start with a minimum investment of $25,000.

Until today - when Wall Street’s self regulatory organization The Financial Industry Regulatory Authority (FINRA) approved the listing of the Ether based trust on OTC markets, meaning anyone who holds stocks can add this to their portfolio by buying shares of the trust, which will trade under symbol 'ETHE'.

Also gone is the minimum investment, opening up participation to 'mom and pop' traders. "The secondary market really opens up the opportunity for any and all investors” says Grayscale's managing director Michael Sonnenshein.

Important note for crypto traders who may not be familiar with traditional markets - unlike trading in futures, a trust actually holds the asset. Meaning Greyscale actually buys and holds Ethereum in order to operate the trust, in this case each share equaling about 0.10 ETH.

So why is this a big deal? Many investors are curious about crypto, but not enough to fully dive in and open an account on an exchange.  Now, they can shares of the trust to their existing stock portfolio.

Sentiment around Ethereum was already indicating high levels of positive speculation that Ethereum is next in line for a strong bull run. All eyes are on $250, a resistance level ETH hasn't been able to break through since Sept 2018. With the exception of a quick spike up, that came right back down, so quickly its was meaningless - but if it can hold above this level; next time the flood gates may open!

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Author: Justin Derbek
New York News Desk