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In this photo illustration, a novelty Bitcoin token is placed on a computer keyboard on March 13, 2022 in Bristol, United Kingdom.
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Major cryptocurrencies began to rise late last year after U.S. regulators approved a Bitcoin exchange-traded fund, leading to expectations that the number of potential investors would expand, and stock prices plummeted.
Once these funds received the green light, Bitcoin fell. What gives?
Bitcoin topped $47,000 earlier this month for the first time since April 2022, as investors expected the U.S. Securities and Exchange Commission to approve the first-ever exchange-traded fund to track Bitcoin's spot price.
but Cryptocurrencies fell after the SEC's favorable decision was officially made on January 10th. And Bitcoin fell below $40,000 earlier this week for the first time since December.
The cryptocurrency was trading at around $39,519 per coin as of 4pm ET on Wednesday.
So why is the price of Bitcoin falling even though investors got what they wanted? According to Antoni Trenchev, co-founder of the crypto financier, Part of the reason may be the idea of “buying rumors and selling news.'' Nexo. The idea is that asset prices often rise in anticipation of announcements, and then fall when the news is actually announced as investors take profits.
Interestingly, Bitcoin ETF activity is actually showing net buying.
Through Wednesday, investors have withdrawn about $4.4 billion from the Grayscale Bitcoin Trust since it was converted into an ETF on Jan. 11, according to data from Coinshares. Grayscale's fund is the largest Bitcoin ETF, with approximately $20 billion in assets.
However, these flows were offset by approximately $5.3 billion poured into nine other spot Bitcoin ETFs.
Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, said ETFs hold only a fraction of the bitcoins traded. It means, “The call is coming from inside the house.” “Someone who previously owned the cryptocurrency is selling it,” he said.
Bitcoin has continued to rise in value over the past year after plummeting below $17,000 at the end of 2022 after cryptocurrency exchange FTX filed for bankruptcy, sparking a firestorm in crypto trading. ing. Still, it is well below the all-time high of around $69,000 set in November 2021.
“We are used to this kind of cosmic instability. What matters now is what happens next that creates excitement around cryptocurrencies and potentially brings further profits.” OANDA Sr. market analyst Craig Erlam said in a note Tuesday.
Your 401(k), gas prices, and housing: 3 surprising reasons to be happy.
Americans are fed up with an economy that many feel is not working for them, and the 2024 election could be a referendum on those dark feelings. However, the direction of the wind may be changing. 401(k) plans are on fire. Consumer sentiment is rising. Gas prices have fallen. My colleague Brian Mena's analysis suggests that the country's economic climate is finally starting to feel vibrant again.
Years of economic turmoil were caused primarily by the unrelenting pain of high inflation. While a tough housing market and exorbitant child care costs continue to plague budgets, the inflation pendulum is finally swinging in the other direction.
Inflation has fallen significantly since its 40-year peak in the summer of 2022. The strong rally in U.S. stocks is now back on track, mortgage rates have eased slightly in recent weeks, and the job market remains strong, with unemployment near historic lows. .
Of course, none of this guarantees that good times will continue. For example, conflicts abroad can increase the price of oil and other consumer goods.
However, consumer surveys are beginning to capture changing, more optimistic sentiment among Americans. Here are three reasons to be happy about the state of the U.S. economy. (At least for now.)
Please see here for the detail.
Treasury Secretary Janet Yellen will detail her vision to help middle-class families overcome affordability challenges in a major speech scheduled for Thursday in Chicago, according to excerpts first shared with CNN. It is said that
“Our economic policy is not finished yet. The president and I have a lot more we want to do to help the middle class,” Yellen is scheduled to say in a speech at the Economic Club. Chicago.
Treasury officials are touting the speech as one of Yellen's most important plans this year, an effort to set the course for domestic policy in 2024, my colleague Matt said.・Reported by Mr. Egan.
Yellen plans to strike a balance with Biden administration Many Americans are taking credit for the economic recovery from COVID-19, acknowledging that they are frustrated with how much it costs to buy a home, raise children and save for college.
“Being a working parent is still hard. We need to make sure American families have access to affordable child care and other supports for their children,” Yellen is expected to say, according to excerpts.
Please see here for the detail.
