A new study by the Bank for International Settlements (BIS) suggests that cryptocurrencies like Bitcoin have not reduced financial risks but rather amplified them in emerging market economies, leading to potential policy options ranging from bans to regulation.
Cryptocurrencies pegged to the dollar are posing a potential threat to Visa and PayPal, highlighting the potential in digital payments, although this trend is not yet reflected in the stock market.
The recent downturn in the cryptocurrency market, marked by a 10% decline in total market capitalization and significant liquidations on futures contracts, can be attributed to various economic factors such as rising interest rates and inflation, as well as regulatory concerns and financial difficulties within the industry, with the future trajectory of the market being influenced by these factors.
Cryptocurrencies, including Bitcoin and Ethereum, experienced a rise in value as investors anticipated the Federal Reserve's annual meeting and Bitcoin attempted to reach $30,000.
The cryptocurrency market is preparing for a potential larger financial event in September that could significantly impact Bitcoin, Ethereum, XRP, and the wider digital asset landscape.
A new whitepaper called "Cointime Economics: A New Framework For Bitcoin On-chain Analysis" introduces a time-based perspective to understand the Bitcoin economy, offering insights into the economic realities and value propositions of the cryptocurrency.
Cryptocurrency is becoming an important issue in the 2024 election, with candidates and voters taking stances on its regulation and use.
Institutional investors hold the power to determine the success or failure of cryptocurrencies, as the novel technology and uncertain regulation have diminished interest and confidence, resulting in a significant decline in value.
Bitcoin, as the world's first decentralized digital currency, is challenging traditional notions of money by empowering individuals, offering a store of value, and demonstrating a growing network effect. With its scarcity, transparency, and potential for financial inclusion, bitcoin is positioning itself as a transformative force in the digital age.
Bitcoin, the first leading cryptocurrency, has been the top-performing asset over the past decade and offers a hedge against inflation and potential diversification benefits for portfolios.
BlackRock's entry into the crypto space with its application for a Bitcoin exchange-traded fund (ETF) marks a significant turning point that dispels the notion of cryptocurrencies as a passing trend, signaling the growing institutional interest in Bitcoin and the crypto industry.
Stablecoins are designed to reduce crypto market volatility by tying their value to a reliable asset, providing investors with stability, transparency, and access to the financial system while minimizing risks.
Global search traffic for the term "cryptocurrency" has reached a five-year low, potentially influenced by factors beyond price volatility such as regulatory crackdown and increased knowledge of crypto among the general public.
Nearly half of the world's crypto millionaires hold their fortunes in Bitcoin, highlighting the enduring popularity of the cryptocurrency despite competition from other digital assets.
Bitcoin and other cryptocurrencies remain stable with low volatility, indicating a decline in investor interest in the crypto market.
Quantitative easing (QE) is a monetary policy tool used by central banks to boost the economy by purchasing financial assets, such as government bonds, which increases the money supply and lowers interest rates; while its impact on cryptocurrencies is indirect, QE can lead to increased demand for cryptocurrencies as alternative stores of value due to devalued fiat currencies and greater liquidity in the market. However, the decentralized nature of cryptocurrencies makes direct application of QE challenging, with supply dynamics, forking and airdrops, stablecoins, and market dynamics having potential implications on the crypto industry. QE also has criticisms and limitations, including inequality escalation, market distortion, potential financial instability, and impairment of financial markets.
Cryptocurrency prices are less influenced by macroeconomic factors compared to traditional financial assets, with key drivers being market confidence, adoption, technology, and liquidity conditions, while traditional assets are more affected by macroeconomic drivers such as interest rates and inflation, as well as government regulations and transparency requirements.
Bitcoin and other cryptocurrencies experienced a rise prior to the Federal Reserve's decision on interest rates, signaling possible volatility in the market.
Crypto is poised to create a new investable asset class globally and will revolutionize the internet, requiring new business models, metrics, and research structures, as well as a framework to analyze value flows within the tech stack, particularly in relation to Ethereum's layer 2 solutions.
Summary: Financial advisors can help navigate the world of cryptocurrencies by dispelling common myths, such as the belief that cryptocurrencies are purely speculative, mainly used for illicit activity, and bad for the environment.
Cryptocurrency is seen as a solution to the lack of sustainability and investor confidence in the African fintech space, according to experts interviewed on the Hashing It Out podcast.
