Bitcoin & cryptocurrency news

Kraken CEO Says Bitcoin Below $40k Is A Buying Opportunity

Jesse Powell, the CEO of the popular crypto exchange Kraken, has said that Bitcoin under $40K would be a good buy, while also predicting that the dollar will go to zero. Bitcoin’s Fall Is A Buying Opportunity If the price of Bitcoin falls below $40,000, Kraken CEO Jesse Powell says the present downward pressure would provide another purchasing opportunity for investors. The Kraken CEO discussed the crypto market in an interview with Bloomberg TV, revisiting his former prediction that BTC will climb to $100,000 by the end of the year. “But I think a lot of people see anything under the $40,000 as a buying opportunity. I was personally buying when we dipped back to $30,000 a few months ago. A lot of people have some dry powder on the sidelines just waiting to come back in at rock-bottom prices.” Bitcoin was expected to exceed $100,000 by the end of 2021, according to Jesse Powell. Despite the fact that he stated that there are still a few days left, at a press time price of $49,396, and given the present trend, a milestone as significant as the one promised is unlikely to occur. Related article | Kraken Director Dan Held Tags Traditional Financial Institutions A “Cartel” Long Term Investment If Dollar Falls Powell acknowledged that his past predictions for Bitcoin may have been off the mark, but added that it’s difficult to foresee what will happen next in the market. However, he believes that anyone considering investing in Bitcoin should consider it as a “five-year plus investment.” He also discussed Bitcoin’s more volatile nature, stating that this is more obvious on shorter time frames, with its price swinging dramatically in a day or over a week. He feels that the best method is to treat cryptocurrency as a “buy and hold” investment. “Bitcoin is something I think about as a long-term investment because it’s difficult to predict short-term price moves,” said Powell. “It’s a speculative asset in many ways, but you can’t help but be impressed by how far it has come and the amount of innovation that’s happening around it.” While Powell remains bullish on cryptocurrency, particularly Bitcoin, he paints a bleak picture for the US dollar. With interest rates expected to go negative and the dollar approaching “zero,” he believes the best option for investors is to avoid holding their currencies in the greenback. Powell addressed the decade-long uncertainty in the US regulatory regime and the lack of a proper set of regulations in the sector. As a result, several companies have shifted their headquarters offshore in search of greener pastures, while others have remained on the sidelines, fearful of the implications. Powell also discussed Kraken’s ambitions as the crypto industry grows in popularity, stating that the exchange wants to help combat disinformation that could harm new investors. Kraken is also planning to launch a non-fungible token (NFT) platform to capitalize on the growing interest in the field. BTC price chart on Kraken | Source: BTC/USD on TradingView.com Related Article | Did US Regulators Began Offensive Against Crypto Platforms? CFTC Fines Kraken Featured Image from Pixabay – Charts by TradingView

Otis Launches NFT Auction Platform That Transforms Real-World Items Into Digital Collectibles

As both fractional and traditional non-fungible tokens (NFTs) have seen exponential growth this year, the firm Otis has announced the launch of a marketplace called Otis House. The platform is a new NFT project that turns physical items into NFTs, and the tokens can be traded at any time for the physical items stored in […]

Bitcoin & cryptocurrency news

Bitcoin, Ether Spike After Fed Announce No Change To Interest Rates

The price of major cryptocurrencies soared on Wednesday after the Federal Reserve announced that it will accelerate the tapering of its asset purchases, with the program set to expire in March, and that the benchmark interest rate would be raised three times next year. Following the Fed’s announcement, Bitcoin soared from roughly $47,800 to over $49,350. The cryptocurrency is currently worth $49,080, up 2.2 percent in the last 24 hours. Ethereum was at above $4k at press time. Tapering Scared Investors Off The crypto market may have already factored in the Fed’s decision to accelerate tapering. Bitcoin has lost more than a quarter of its value since hitting an all-time high of $68,991 in November. Ether has dropped more than 15% from its all-time high of $4,865.6. Major cryptocurrencies were likely to surge if the Fed was less aggressive than the market predicted, according to several traders. “We’ve been in a risk-off environment in bitcoin and the crypto asset broadly over the last month,” Louis LaValle, managing director at crypto fund manager 3iQ Digital Assets, said. “If the FOMC (Federal Open Market Committee) meeting doesn’t make blockbuster headlines, that could be a buying opportunity for those on the sidelines.” Powell stated in November that the Fed will “start to reduce the pace of asset purchases,” prompting many to believe that an interest rate hike would be announced at today’s meeting. President Biden recently re-nominated Federal Reserve Chair Jerome Powell for a second term Related article | New COVID Variant FUD Drives Bitcoin Down To $54k The reverse of Quantitative Easing programs, such as asset purchases and so-called “money printing” is known as tapering. Each month, the Fed buys $40 billion in US Agency Securities and $80 billion in US Treasury Securities. Stock prices have fallen as a result of the anxieties, as tapering tactics are known to trigger economic downturns. According to today’s Fed statement, the interest rate will continue around zero until complete employment recovery to pre-Covid levels is achieved. With new instances of the Omicron Covid variant reaching record highs in both the United States and the United Kingdom today, this is unlikely to happen anytime soon Bitcoin Spikes | Source: BTCUSD on TradingView.com Bitcoin Is Seen As Hedge But Volatility Threatens Many investors consider the largest cryptocurrency by market cap to be a hedge against inflation, owing to the belief that its supply is strictly limited by the programming embedded into the underlying blockchain. The Federal Reserve’s human-decided monetary policies, which have inflated its balance sheet to approximately $8.7 trillion, more than double where it was in early 2020, contrast with that hard-coded procedure. However, because bitcoin is seen as a hazardous asset, traders believe that loose monetary policies encourage investors to make larger speculative wagers. A shift away from these “dovish” policies could be a drag on bitcoin. It’s also unclear whether an unusually high number of Covid-19 cases will frighten financial markets, and if so, whether a Bitcoin bloodbath will follow suit, as it did in March 2020. Related article | Why Bitcoin Could Be Stronger Than Ever After COVID-19 Pandemic Passes Featured image from Unsplash.com, charts from TradingView.com