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FreshKorn Cryptocurrency

Tesla and Musk tank bitcoin but there are still many crypto fans out there

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The price of bitcoin, dogecoin and other top cryptos ethereum, binance and litecoin, have been in freefall for the past week or so. Musk first tanked the market when he went on “Saturday Night Live” on May 8 and joked about cryptos, even calling dogecoin a “hustle.”

But Musk’s recent declaration that Tesla would no longer accept bitcoin as payment for its cars due to the crypto’s massive carbon footprint, as well as a series of confusing and somewhat contradictory tweets about the company’s bitcoin holdings, has the investment world up in arms.

Bitcoin still has many fans

The comments come just as several prominent companies have started to embrace bitcoin. Square (SQ) and Venmo owner PayPal (PYPL) are working to streamline bitcoin payments on their networks. Big Data firm Palantir, Visa (V) and Starbucks (SBUX) are among the more well-known firms that have touted bitcoin lately as well.

Palantir chief financial officer David Glazer said on an earnings call earlier this month that the company has discussed the possibility of adding bitcoin to its balance sheet and was “open for business'” with regards to accepting the crypto as payment from customers.

“We still see other companies coming in and investing in bitcoin because they view it as a store of value, a digital gold,” said Stephen Kelso, head of markets at ITI Capital, in an interview with CNN Business.

Kelso said bitcoin is still viewed by investors and corporations as a way to hedge against inflation.

Along those lines, software firm MicroStrategy (MSTR), which like Tesla holds bitcoin on its balance sheet, has bought even more of the cryptocurrency in recent days. But MicroStrategy’s stock fell 7% on Monday and has plunged nearly 20% in the past week as bitcoin prices have tumbled.

Still too volatile for many in Corporate America?

Bitcoin’s breakneck volatility continues to be a major concern. It may be one thing for a company to keep a small amount of crypto on its balance sheet as a sexier alternative to cash and Treasury bonds in hopes of better returns.

But can mainstream firms — particularly those with big consumer businesses — really risk allowing customers to buy and sell goods with a currency that is so volatile? Probably not.

“For cryptocurrencies to become widespread and embedded, some stability is necessary,” said Danyaal Rashid, thematic analyst at GlobalData, in a report Monday.

“This is certainly the case if people expect to make payments with crypto. If we anticipate week-on-week price swings of up to 20%, payments become infeasible,” Rashid added.

How two brothers went from nearly jobless to multi-millionaires with a bizarre crypto bet
So it’s no wonder that Colgate-Palmoliv (CL)CEO Noel Wallace simply said, “No, we don’t,” when asked at the recent annual shareholder meeting if the company has a plan for using bitcoin for any business transactions.
And Tesla rival Volkswagen (VLKAF)isn’t bullish on bitcoin either. VW chief financial officer Arno Antlitz said on the automaker’s latest earnings call that “we have currently no plans to use cryptocurrencies or invest in cryptocurrencies.”

Even so, there is legitimate interest in cryptos on the part of investors. And a lot of that — for better or for worse — may be due to Musk.

“It’s a strange phenomenon when your risk committee has to seriously discuss SNL. But I think it helps bring more investors into the fray,” said Michael Kamerman, CEO of Skilling, a retail brokerage firm that focuses on cryptocurrencies.

Kamerman said he thinks that there will be an eventual shakeout in the cryptocurrency market. There are simply too many of them right now.

Just as Amazon (AMZN) shares plunged when the dot.com bubble burst more than twenty years ago before eventually rebounding, the same may happen with bitcoin and other leading cryptos.

“The dust has to settle, but we’re on to something with cryptos that is similar to the late 1990s and e-commerce,” Kamerman said.

Other experts say that investors have to get used to the volatility. The crypto world moves a lot more quickly than stocks, bonds and traditional currencies.

But this too shall pass as the industry starts to mature.

“A lot of bitcoin investors still take their cues from Musk. It will be awhile before we’re completely insulated from that,” said Ben Weiss, CEO of CoinFlip, a crypto ATM company. “But bitcoin is stronger than one company and one person.”



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FreshKorn Cryptocurrency

Dow plummets more than 500 points as volatility returns to stock market

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The Dow fell more than 530 points Friday, a drop of around 1.6%. It was a broad-based selloff, with all 30 Dow stocks finishing in the red. Intel (INTC), Goldman Sachs (GS) and Walgreens (WBA) were among the biggest decliners.

The Dow is now on a five-day losing streak, falling nearly 3.5% this week. That’s the worst weekly pullback since late January.

Bullard, who does not have a say on the Fed’s policy committee this year but will have a vote in 2022, also said in the interview that the Fed is also starting to discuss the idea of tapering, or cutting back, its bond purchases.
Wall Street is worried about inflation. But investors are also nervous about the Fed taking away the stimulus it injected into the market during the height of the Covid-19 pandemic.

“There is more future volatility ahead,” said Bruce Monrad, portfolio manager of Northeast Investors Trust. “It should increase as the Fed starts to think about raising rates and once it starts tapering.”

These market gyrations could become more routine, which may alarm investors who have gotten used to more calm on Wall Street.

It’s actually been an unusually quiet first half of 2021 — despite the craziness with meme stocks like AMC (AMC) and GameStop (GME) and the big moves in bitcoin (XBT) and other cryptocurrencies.
This cannabis stock is a new Reddit favorite
If you look at the broader stock market, and the VIX (VIX) volatility index in particular, 2021 has been serene for investors.

“Volatility has been very low because the market overall supported by improving earnings,” said Marco Pirondini, head of equity at Amundi US. “But there is always some speculation in other corners of the market.”

The VIX, which many investors refer to as Wall Street’s “fear gauge,” is now hovering around the pre-pandemic levels of February 2020. It’s been steadily declining since peaking in March of last year. The VIX has fallen nearly 15% in 2021.

But the VIX spiked about 10% Friday, and some experts warn that the summer and latter half of 2021 could be a bit bumpier than the first six months of the year.

“When you look at the VIX, it’s eerily quiet. But that’s a little bit misleading,” said Darren Schuringa, CEO and founder of ASYMmetric ETFs, which runs a fund designed to lower investor risk.

Schuringa said he’s worried about the “speculative excess” in the meme stocks as well as in the tech sector and thinks that a broader market correction could be on the horizon.

It’s also clear, as Friday’s market pullback illustrates, that investors are hyperfocused on every little thing the Fed says about interest rates, tapering, inflation and the economy.

“I’m concerned about volatility in the second half of year. There is less room for error,” said Daniela Mardarovici, co-head of US multisector fixed income at Macquarie Investment Management. “Even a mild surprise from the Fed could create an aftershock.”

Still, it’s worth noting that volatility, while rising lately, remains relatively low. Measures of volatility for oil and interest rates have tumbled in recent months, along with the VIX.

“We could see some hiccups ahead. But it’s still pretty calm,” said Bill Sterling, global strategist with GW&K Investment Management.

Investors may also be overreacting to every utterance by Fed members. After all, Bullard is just one person, who doesn’t even have a vote until next year. The remaining Fed members still don’t think a rate hike is imminent.

“Big changes from the Fed are likely still years away. This volatility might be transitory but it will rear its head every now and then because of more uncertainty,” said Marvin Loh, senior global macro strategist with State Street Global Markets.



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FreshKorn Cryptocurrency

Dow plummets 500 points as volatility returns to stock market

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The Dow fell 500 points in late morning trading Friday, a drop of around 1.5%. It was a broad-based selloff, with 29 of the 30 Dow stocks in the red. Caterpillar (CAT) was the only winner while Intel (INTC), Goldman Sachs (GS), American Express (AXP) and Walgreens (WBA) posted the biggest drops.

The Dow is now on pace for its fifth straight day of losses, falling more than 3% this week.

Bullard, who does not have a say on the Fed’s policy committee this year but will have a vote in 2022, also said in the interview that the Fed is also starting to discuss the idea of tapering, or cutting back, its bond purchases.
Wall Street is worried about inflation. But investors are also nervous about the Fed taking away the stimulus it injected into the market during the height of the Covid-19 pandemic.

“There is more future volatility ahead,” said Bruce Monrad, portfolio manager of Northeast Investors Trust. “It should increase as the Fed starts to think about raising rates and once it starts tapering.”

These market gyrations could become more routine, which may alarm investors who have gotten used to more calm on Wall Street.

It’s actually been an unusually quiet first half of 2021 — despite the craziness with meme stocks like AMC (AMC) and GameStop (GME) and the big moves in bitcoin (XBT) and other cryptocurrencies.
This cannabis stock is a new Reddit favorite
If you look at the broader stock market, and the VIX (VIX) volatility index in particular, 2021 has been serene for investors.

“Volatility has been very low because the market overall supported by improving earnings,” said Marco Pirondini, head of equity at Amundi US. “But there is always some speculation in other corners of the market.”

The VIX, which many investors refer to as Wall Street’s “fear gauge,” is now hovering around the pre-pandemic levels of February 2020. It’s been steadily declining since peaking in March of last year. The VIX has fallen nearly 15% in 2021.

But the VIX spiked more than 10% Friday morning, and some experts warn that the summer and latter half of 2021 could be a bit bumpier than the first six months of the year.

“When you look at the VIX, it’s eerily quiet. But that’s a little bit misleading,” said Darren Schuringa, CEO and founder of ASYMmetric ETFs, which runs a fund designed to lower investor risk.

Schuringa said he’s concerned about the “speculative excess” in the meme stocks as well as in the tech sector and thinks that a broader market correction could be on the horizon.



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FreshKorn Cryptocurrency

Con Artists Capitalizing On Cryptocurrency Craze – CBS Miami

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