Bitcoin Has Not Yet Convinced Investors
Bitcoin Has Not Yet Convinced Investors: Market decline – Due to Labor Day, U.S. markets were closed on Monday. The major bourses closed the day in the red, while the pan-European Stoxx 600 was flat. Germany’s DAX fell 0.1% as fresh data revealed that exports fell 0.9% month-over-month and 1% year-over-year in July, fueling concerns that the German economy may fall in the third quarter.
Europe’s “Sick Man”
The “sick man of Europe” is Germany once more, according to Hans-Werner Sinn, president emeritus of the Ifo institute. The HCOB flash purchasing managers index shows a severe decline in the nation’s economic activity in August. Furthermore, Sinn warned, Germany’s efforts to become carbon neutral by 2045 put its industry at danger and could result in a “backlash” from the populace.
Xi Not Present At G20
This weekend’s G20 summit in New Delhi will be led by Premier Li Qiang, according to the Chinese foreign ministry. President Xi Jinping’s presence at the meeting was not confirmed by the ministry, but spokesperson Mao Ning failed to answer questions from reporters about whether Li’s attendance indicated Xi wouldn’t be there. Vladimir Putin, the president of Russia, is another notable absentee.
New Grain Agreement Talks
On Monday in Sochi, Russia, Putin had talks with Recep Tayyip Erdogan of Turkey. Putin is apparently willing to restart the Black Sea Grain Initiative, which allowed Ukraine to export agricultural goods, but only if Russia also receives concessions.
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Don’t Let These Stocks Lapse.
Every day, adults require seven to nine hours of sleep. According to a 2022 McKinsey survey, even if 63% of American adults don’t fit the description, they are becoming more worried about their health. For these stocks that deal with sleep, that is the beginning of a nice dream.
The conclusion
If, as Federal Reserve Chair Jerome Powell phrased it in his Jackson Hole speech, “navigating by the stars under cloudy skies” is how the U.S. economy’s interest rate trajectory is charted, then forecasting stock movement is like doing it when the stars are extinguished. What about predicting the cost of bitcoin? The intrepid navigator should be given a blindfold. Let’s examine two forecasts from earlier this year.
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Geoff Kendrick, head of cryptocurrency research at Standard Chartered, is at the pessimistic end of the spectrum. He predicted in an April note that bitcoin’s value could increase to $100,000 by the end of 2024.
However, longstanding proponent Chamath Palihapitiya, who predicted two years ago that bitcoin will overtake gold and soar to $200,000, has since changed his mind.
What do the figures indicate? At the time of publication, the price of one bitcoin is $25,774. Since it stood at $16,606 on January 1st, bitcoin has increased by around 55% this year. That suggests that bitcoin is viable. However, if we look at the price of the digital currency over a longer period of time, it is currently roughly 62% less than its all-time high, which was set in November 2021 and was $68,990.
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Bitcoin occasionally trades in the opposite direction from stocks because some people view it as a safe haven during difficult times, furthering the misunderstanding. Bitcoin sometimes matches the movement of stocks because it is thought to gain from a thriving economy. The moral of the story is that bitcoin is extremely erratic, and at this moment, neither prediction can be proven nor refuted.
Although the SEC rejected Grayscale’s proposal to convert its bitcoin trust into an ETF, a U.S. court recently backed with Grayscale in a case against the agency, which has given investors hope for bitcoin. This indicates that major corporations are developing bitcoin ETFs that will enable individual investors to trade the cryptocurrency without actually owning it. When the news first surfaced on Tuesday, the price of bitcoin increased by more than 7%.
However, the SEC has also put off making a judgement regarding bitcoin ETFs, halting the fleeting bull run in bitcoin prices. Bitcoin’s price dropped 10% in August.
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