Tag: Stock

Analysts Suggest Crypto Price plunge Could be Start of New Market Trend

by Blockchain News

After experiencing a great plunge in the crypto market, major tokens such as Bitcoin has been rebounded slightly.

Bitcoin has experienced a plunge below $30,000, a move that breached a symbolic price threshold. However, the flagship cryptocurrency later recovered from some of those losses, trading at $30,864.31 as of 07:17 am. ET, according to data from CoinMarketCap.

Analysts have tried to explain what is happening in the capital markets. They have generally indicated that the plunge in prices could be the beginning of a new market trend, as Bitcoin’s valuation has fallen to its lowest level since November 2021.

Darshan Bathija, the CEO of Singapore-based crypto exchange Vauld, also said on Monday that: “In light of fears of rising inflation, most investors have taken a risk-off approach—selling stocks and cryptos alike in order to cut down risk.”

Meanwhile, Michael Novogratz, the billionaire crypto investor and the founder and CEO of Galaxy Digital Holdings investment management firm, warned that he expects things to get worse before they get better.

Novogratz stated some important revelations during Galaxy’s first-quarter earnings call on Monday: “Crypto probably trades correlated to the Nasdaq until we hit a new equilibrium. My instinct is there’s some more damage to be done, and that will trade in a very choppy, volatile and difficult market for at least the next few quarters before people are getting some sense that we’re at equilibrium.”

The dip marks the fifth consecutive day for Bitcoin witnessing a downtrend, a decline that has sent its price less than half of what it was at its all-time high of $69,000 in November.

Previously, July 2021 was the last time Bitcoin fell below $30,000 when the digital coin traded at $29,839.80.

Overall, major cryptocurrencies have also seen a significant drop from their positions in the last 24 hours and several coins crashed below support levels. Binance (BNB) has witnessed a huge plunge, 12.78% down; Solana token fell significantly by 14.77%; Ethereum was 7.06% down in the last 24 hours, trading at around $2,317.

The price decline comes amid the recent sell-off that has affected much of the cryptocurrency market and equities. In the last 24 hours, the global crypto market cap is drastically down by 9.83%. Also, the three most majorly followed stock indexes in the U.S. – the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite – fell to their lowest level since 2020.

On Thursday, the Federal Reserve stated that it would raise interest rates by half a percentage point —the largest increase since 2000—to battle inflation. US Stocks have been on a steady decline since the announcement.

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Tech Stocks to Grow this Year thanks to Crypto & Metaverse, Wall Street Analyst Says

by Blockchain News

Cyrus Mewawalla, the head of thematic research at data analytics and consultancy firm GlobalData believes that tech companies whose operations extend into the metaverse and crypto, despite the massive uncertainties experienced in the stock market, end up in gains at the end of the year.

Speaking in an interview with CNBC, the analyst said metaverse, Web 3.0, cryptocurrencies, and quantum computing could be the key drivers of growth for many tech stocks that operate in the area.

Among the prominent names that come to mind is Meta Platforms Inc (formerly Facebook), which rebranded its name last year to focus more on the metaverse. Humans can interact in various forms through their digital avatars in this virtual reality world. The company has a subsidiary Oculus which manufactures VR headsets that can easily be adapted to represent more metaverse related functions.

The analyst believes Meta, Microsoft, and other outfits tilted towards these emerging technologies can turn their books around irrespective of macroeconomic conditions.

However, Mewawalla is not so hopeful about the growth of Apple Inc as one of the tech stocks billed for growth this year. This is perhaps due to the fact that the tech giant is neither known for floating new innovative products nor has it indicated its move into the fast-growing metaverse world.

“Apple is probably the least likely to grow from here in terms of maintaining its valuation,” he said. “It’s got a very, very strong ecosystem with very strong execution. So I see very little downside risk. But the upside potential I see more in other big tech stocks.”

The cryptocurrency ecosystem is a growing industry is no longer a viable excuse for institutional investors to stay out. Instead, they should consider it for long-term investment. For a renowned analyst to hinge crypto as a factor for growth for huge multinationals is a show of how far emerging tech has come in establishing itself as a force of massive innovation and global transformation.

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Cash App Launches Bitcoin and Stock Gifting Feature For The Holidays

by NEWSBTC

Cash App has recently launched a new feature that would allow users to gift friends and family stock and bitcoin. The app has taken gifting to another level with this new feature that will literally allow users to gift crypto to their loved ones with this feature. The gifting feature works the same way sending money in the app does but this time around, users will be able to gift as little as $1 in stock or crypto.

Gifting Bitcoin With Cash App

The payments app had taken to Twitter to announce the new feature roll-out. It explained that users will be able to gift crypto and stock to their loved ones regardless of whether or not they owned any of it themselves. It would be akin to sending cash on the app and just as easy. The feature was to enable users to help their loved ones start their investing journey by gifting them their first stock or bitcoin.

Related Reading | Millennial Millionaires Are The Most Bullish On Crypto, Survey Finds

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“With Cash App, you can now send as little as $1 in stock or bitcoin. It’s as easy as sending cash, and you don’t need to own stock or bitcoin to gift it. So this holiday season, forget the scented candles or novelty beach towel, and help your cousin start investing.”

Cash App’s new gifting feature will only be available to users in the United States. The payments app is owned by Block, formerly known as Square, which is run by ex-CEO of Twitter, Jack Dorsey. With the announcement of the rebrand, Dorsey had explained that the brand’s mission was to help the seller community, by building tools that give access to the economy.

Bitcoin price chart from TradingView.com

BTC continues downtrend | Source: BTCUSD on TradingView.com

Other Companies Jumping In

Cash App is not the first to announce a bitcoin and stock gifting option to its users. Crypto exchange Coinbase had rolled out a similar feature which is currently live where users are able to gift cryptocurrencies to their family and friends. The crypto is gifted using a digital card picked out by the user that is inspired by NFT art.

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Related Reading | Struggling Prices Beats Bitcoin Expectations Down From $100K To $50K

Trading app Robinhood had also recently rolled out a gifting feature. Users of the app are able to gift up to seven cryptocurrencies to their loved ones including bitcoin and ethereum, of as low as $1. This is to tap into its younger demographic of users who are more likely to gift crypto to their friends and family instead of conventional holiday gifts.

Cash App is however the first peer-to-peer payments service to offer crypto and stock gifting service to its customers. All other brands are trading platforms where users are able to trade cryptocurrencies and stocks directly. Users can choose to send crypto or bitcoin using their existing Cash App balances or using a debit card.

Featured image from Yahoo Finance, chart from TradingView.com

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Elon Musk offloads $1.1B in Tesla stock

by Cointelegraph

Tesla CEO Elon Musk has offloaded more than one billion dollars worth of shares according to recent financial filings. 

Filings submitted on Nov. 11 to the Securities and Exchange Commission confirm the sale of more than 934,000 Tesla shares worth around $1.1 billion.

Musk sold the shares at an average price of around $1,170, locking in almost 180% in gains in prices over the past year. It is just the third time Musk has sold company stock since Tesla went public on the Nasdaq in 2010, and it is his largest transaction.

The filings show that Musk planned to sell the stock as part of his tax obligations back in September. He polled his 63 million followers at the weekend, asking whether he should sell 10% of his Tesla holdings. Of the 3.5 million respondents, almost 58% said yes. However the Tesla CEO has sold less than 1% in this sale and still holds more than 170 million shares.

In response to the poll, he noted “I do not take a cash salary or bonus from anywhere. I only have stock, thus the only way for me to pay taxes personally is to sell stock.”

In the days following the poll, Tesla stock slumped 16% to dip below $1,000 briefly on Nov. 10. TSLA had hit an all-time high of $1,230 on Nov. 4 and it is currently around 11% down from that peak.

Related: Bitcoin dips below $67K as Tesla stock slump combines with Apple CEO denying crypto plans

There has been speculation — hopium really — in crypto circles that he may put some of that cash into digital assets. Mr. Whale asked his 357,000 followers: “Which cryptocurrency should he buy to make himself the first-ever trillionaire?”

MicroStrategy CEO Michael Saylor suggested he buy more Bitcoin following the Twitter poll but before the news emerged about this sale:

“If the goal is diversification, an alternate strategy to consider is converting the $TSLA balance sheet to a Bitcoin Standard and purchasing $25 billion in $BTC. That would deliver diversification, inflation protection & more upside for all investors in a tax efficient manner.”

According to BitcoinTreasuries, Tesla currently holds 43,200 BTC worth an estimated $2.79 billion at current prices.

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Citi’s bullish Coinbase target: ‘Buy crypto’s general store’

by Cointelegraph

Financial services multinational Citi initiated coverage of U.S. crypto exchange Coinbase’s stock this week with a very bullish price target.

Citi analyst Peter Christiansen told investors that they could “buy crypto’s general store,” in a research note published on Tuesday, Oct. 26. Citi has given COIN a bullish price target of $415 which is substantially higher than Monday’s closing price of $319.

The analyst stated that the stock offers investors “direct exposure to increased retail and institutional adoption of cryptocurrencies.”

The multinational banking giant sees the potential in Coinbase as the company makes continued efforts to expand its operations beyond just a crypto exchange and into other areas such as NFTs and cold wallet storage.

The company accrued more than a million applications for its NFT platform waiting list within a day or so of its announcement on Oct. 13. Christiansen recommended the company, “for its position within the crypto value chain, a ‘networking-based’ business model and strategy, the undeniably very large opportunity set … yes, we believe COIN is investable.”

He also considers Coinbase’s “lean forward approach to regulatory compliance” a competitive advantage.

“To a degree, we think rising regulations could be a positive for Coinbase’s competitive positioning, particularly versus business models that predominantly rely on markets being unregulated.”

Christiansen added that the stock is in place to make “higher highs and higher lows” as crypto asset adoption increases. U.S. investment bank Piper Sandler also raised their target price for the stock to $360.

Not every analyst is on board with JPMorgan’s Kenneth Worthington raising his price target on COIN only slightly to $375 from $372. However Lisa Ellis, senior Equity Analyst at MoffettNathanson said COIN was a “must-own stock” that could go to $600 in light of its recent partnership with Facebook on its Novi crypto wallet.

Coinbase went public in April with an opening IPO price of $381, it surged to a peak of $430 on the day before retreating. COIN hit a monthly high of $326 on Monday this week but has fallen 4.3% since to an after-hours trading price of $312 according to MarketWatch.

Related: Reports suggest that a mainstream tech giant holds shares of Coinbase stock

Shortly after it was listed, reports emerged that Coinbase insiders and executives had begun dumping the stock. The company made around $1.6 billion in profit in Q2, a large portion of that coming from its higher than industry average transaction fees. The Q3 report comes out on November 9.

In August, CNBC ‘Mad Money’ host Jim Cramer recommended Coinbase stock suggesting investors allocate 5% of their portfolios to crypto assets.

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Microstrategy Stock Sees Insider Selloffs With Bitcoin’s Latest Correction

by Blockchain News

Two top executives of Nasdaq-listed business intelligence and software firm MicroStrategy Incorporated have reportedly offloaded some of their owned shares amidst the dwindling price of Bitcoin (BTC).

Market analysts have tagged the selloffs as a lack of faith in the CEO Michael Saylor’s long-term strategy, which is solely hinged on Bitcoin.

MicroStrategy, known for its aggressive purchases of Bitcoin, the venture said will form its Treasury Reserve Asset back in August 2020. With over $2 billion of investors’ money already used to purchase the premier cryptocurrency, the firm now holds more than 105,000 units of Bitcoin. Per a Bloomberg report, the firm’s Chief Financial Officer Le Phong and Chief Technology Officer Timothy Lang liquidated 10,000 and 20,000 shares each. Both executives cashed out approximately $7 million per the report. According to a filing with the United States Securities and Exchange Commission (SEC), no shares were sold by Michael Saylor.

While the duo of Le Phong and Timothy Lang are permitted to sell off their shares, it is believed that “senior executives do not sell the stock if they think it’s going higher,” said Matt Maley, chief market strategist at Miller Tabak + Co., “It’s just a bad sign no matter how you slice it.”  

Michael Saylor has climbed up the ladder as one of the most iconic mouthpieces, helping to champion the adoption of Bitcoin, especially amongst institutional investors. He has often maintained that holding cash on balance sheets to grow wealth over the long term is very risky. However, some Wall Street analysts do not see any threats to the company’s executives’ shares selloffs.

“MicroStrategy’s Saylor relentless support for Bitcoin has made the company a cryptocurrency trade and not necessarily a bet on the company’s software solutions and services. The share price will likely continue to go the direction of Saylor and his bet on Bitcoin,”  Ed Moya, a senior market analyst at Oanda Corp, said.

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Paypal to Complement its Latest Crypto Drive by Launching Stock Trading for US Customer

by Blockchain News

American financial services giant Paypal is on track to launch a new investor-focused product dubbed “Invest at Paypal.”

Per a CNBC report, the offering is targeted at U.S customers. The revelation of this move was made by two sources familiar with the matter and comes the following report that Paypal has hired Rich Hagen, a market brokerage veteran, to head the seemingly new unit.

Paypal’s long term ambitions to explore growing opportunities in the financial services industry has been re-echoed by the company’s Chief Executive Officer, Dan Schulman. The company’s intentions to offer stock trading products will directly take the competition to unicorns in the area, including Robinhood and Square’s Cash App. Paypal is notably seeking to cash in on the growing interest in alternative investment offerings, a trend that added millions of new investors in the first half of the year.

Paypal has been evolving remarkably in its product offerings. Blockchain.News reported that the company began offering cryptocurrency trading services to its US customers back in November last year. The dive into the volatile world of cryptocurrencies with buying and selling support for Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH) has spelt great things for the firm.

In its fourth-quarter earnings report released in February, the company reported a boosted transaction figure of about $277 billion for the quarter, which was processed by its platform. Paypal noted that the trading of digital currencies played a crucial role in helping it hit that number. To drive more growth, the company has expanded its digital currency offering into the United Kingdom.

The move to explore stock trading options may serve as a complement to the role of crypto is now a platform in Paypal’s business. High yielding products are becoming common, seeing the GameStop mania earlier in the year. A source of strength for Paypal in this ambitious pursuit is its positive relationship with regulators, a luxury most brokerages are lagging in.

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Bitcoin slides with S&P500 as Fed signals tapering $120B monthly bond purchases

by Cointelegraph

Bitcoin (BTC) prices briefly fell below $44,000 on Aug. 19 as the United States Dollar strengthened after the Federal Reserve policy minutes revealed their intentions to limit their bond-purchasing program this year.

Bitcoin risks $45,000 becoming new resistance 

The spot BTC/USD rate dropped 1.71% to a new week-to-date low of $43,955. The pair’s plunge appeared as a part of a technical correction that started after it reached a three-month high of $48,176 on Aug 14, following a 64.42% price rally.

Bitcoin daily price chart. Source: TradingView.com

Bitcoin’s latest price decline also surfaced in line with a similar market bias on Wall Street. For instance, the benchmark S&P 500 index lost 47.81 points, or 1.1%, to 4400.27 at Wednesday’s final hours of trading.

Similarly, the Dow Jones and the Nasdaq Composite also plunged 1.1% and 0.9%, respectively. In addition, CNBC’s pre-market data revealed that the futures tied to Wall Street indexes dropped on Thursday, hinting that the markets will likely continue their declines after the New York opening bell later today. 

On the other hand, the U.S. dollar index (DXY) benefited from declining risky markets. The index, which measures the greenback’s strength against a basket of top foreign currencies, surged 0.39% to a six-month high of 93.50 before correcting lower by modest margins.

US dollar index daily chart highlighting an inverse head and shoulder setup. Source: TradingView.com

Tapering alert

The Federal Reserve’s July 27-28 meeting, released Wednesday, showed an emerging consensus to unwind their $120 billion worth of Treasury and mortgage-backed securities monthly purchases.

Most central bank officials agreed that the U.S. economic recovery is on the right path, which is an appropriate reason to reduce the pace of asset purchases. But they did not reveal when they should begin the tapering, with only three remaining FOMC meetings left to attend this year.

Officials also agreed that scaling back asset purchases would position them to raise interest rates should the economic recovery persists as anticipated. But they said that they want to see stronger evidence that the labor market has recovered from the aftermaths of the Covid-19 pandemic, the minutes revealed.

On inflation, the minutes showed the Fed officials anticipating a temporary burst. They highlighted that their preferred gauge of inflation, after excluding volatile food and energy categories, was at 3.5% in June, a 30-year high, but anticipated declines by calling the upswing in consumer prices as transitory.

Bullish exhaustion ahead?

In detail, excessive bond-buying ended up sending U.S. debt yields to the low of 0.66% in 2020. Even the bounce back recorded at the beginning of 2021 kept the yields near their record lows. The trend was the same across the globe, wherein the amount of debt offering negative yields recently stood at $16.5 trillion, a six-month peak.

Long-term government bond yields are declining across the developed economies. Source: FRED

The lower rate of returns sparked a series of rotations in the equity market, with indexes logging record highs. The S&P 500 rallied 19.01% year-to-date to hit a lifetime peak of 4,480.26 points, while the Dow Jones jumped 16.30% year-to-date to reach an all-time high of 35,369.87 points.

Bitcoin, which emerged as a safe-haven alternative to the U.S. dollar and gold in 2020, also rose alongside the Wall Street index. In 2021, it penned a record high near $65,000, with analysts crediting the Fed’s loose monetary policies as one of the leading catalysts behind its price rally.

But the biggest question remains whether or not tapering would rotate capital out of the markets that boomed during the period of quantitative easing, especially Bitcoin that now sits atop over 1,000% profits following the Fed’s loose policy introduction in March 2020.

Jon Ovadia, the founder of South Africa-based crypto exchange Ovex, noted that a declining cash flow from the Fed’s coffers would likely halt the growth of Bitcoin and similar risky assets in the near term.

Related: Cause and effect: Will the Bitcoin price drop if the stock market crashes?

“The factors that support the growth of Bitcoin, in particular, goes beyond just the Fed’s interference in keeping the economy healthy,” he explained, adding:

“However, on the macro-economic front, Bitcoin investors will have to factor in the prospective impact and hang on to other fundamentals that abound in the crypto market to keep prices at record levels.”

Bitcoin will refresh record highs by Q1/2022

James Wo, founder and CEO of the Digital Finance Group, called the latest price declines in the Bitcoin and equity market “reactionary” in nature. But he stressed that risk-on assets would continue their upward momentum long-term due to inflationary pressures.

Related: Bitcoin set to replace gold, says Bloomberg strategist on Bretton Woods’ 50th anniversary

“Nominal inflation will take time to get back to levels seen before the pandemic,” he said.

I continue to believe that we are still on track to reach all-time highs by Q4 2021 – Q1 2022.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.