Dispiriting Cryptocurrency Market Development: Bitcoin Sinks to the US$16-K Level
~ Thursday, November 10, 2022 Blog Post ~
About two months ago, I was still rewriting news stories about Bitcoin and the altcoins. Bitcoin’s trading price was hovering in the neighborhood of US$20K to US$21K at that time.
At this point, the flagship virtual currency’s trading price has sunk to about US$16K. I’m surprised to read this report early this morning. Thus, I verified the crypto-asset’s cost in Coinmarketcap.com.
I found that Bitcoin is, indeed, in the US$16-K level. At the time of writing this blog post, the flagship cryptocurrency trades at exactly US$16,166.63. This figure is absolutely dispiriting since Bitcoin had witnessed a meteoric rise, surging from fractions of a penny to an all-time high of almost US$69,000 in November 2021.
I believe Bitcoin can further plummet to US$0 and this possibility is surely terrifying for the crypto-asset bulls and enthusiasts.
I consider myself as a cryptocurrency bear at this point. Cryptocurrencies are certainly volatile and this gloomy attribute is the primary reason I have not poured some of my hard-earned investment funds into them yet, although I have been writing virtual currency news and online articles since 2018. Apparently, I have been learning about these novel investment assets for four years now.
Additionally, the relatively fledgling cryptocurrency market is infested with frauds and scammers. All of these discouraging characteristics of the virtual currency market coupled with this year’s cryptocurrency winter have led me to be in doubt if I would ever take a chance in these new investment assets in the near future, even if my investment would be for mere speculation and education purposes.
References:
https://finance.yahoo.com/news/stocks-sink-crypto-earnings-woes-210231352.html
https://twitter.com/markets/status/1590451994065399808
https://twitter.com/business/status/1590452064777547776
RELATED NEWS FROM BLOOMBERG.COM:
Stocks Rattled by Crypto, Earnings Woes Before CPI: Markets Wrap
Stephen Kirkland
Thu, November 10, 2022 at 5:34 AM
US stocks declined as renewed selling in cryptocurrencies and disappointing earnings weighed on risk sentiment ahead of a key inflation report. The dollar gained for the first time in four days.
The S&P 500 put paid to a three-day rally, with all 11 major industry groups in the red. The tech-heavy Nasdaq 100 dropped the most among benchmarks, closing down 2.4%. Walt Disney Co. and News Corp. tumbled after posting results that fell short of expectations. Bitcoin dropped below $16,000 to a level not seen since 2020 amid a deepening selloff in cryptocurrencies as Binance walked away from its planned takeover of FTX.com.
After midterm elections failed to deliver a Republican sweep, attention shifted toward the closely watched inflation report due Thursday for clues on the path of Federal Reserve policy tightening.
“Elections matter, but other factors matter more for markets and the economy,” Keith Lerner, co-chief investment officer at Truist Wealth, said in a note. “The path of inflation, interest rates, monetary policy, the economy, and earnings will continue to exert the greatest influence on markets over the next year.”
US inflation probably moderated slightly in October, with the consumer price index and the core measure that excludes food and energy both seen cooling on an annual basis. But with the overall annual inflation rate exceeding forecasts in six of the prior seven months, another upside surprise could dash hopes of a Fed downshift after four jumbo rate hikes.
On the election front, investors had eyed prospects of a Republican comeback in Congress, with GOP taking control of both the House of Representatives and Senate. But US voters delivered a mixed verdict, with Republicans heading for control of the House by smaller margins than forecast and the race for Senate still wide open.
More commentary
“Portfolios will assess and adjust their risk now that the ‘uncertainty’ of the U.S. mid-term elections fading,” wrote Craig Johnson, chief market technician at Piper Sandler. “Soon enough, their focus will shift back to this week’s corporate earnings results and the upcoming October CPI data.”
“The market is still going to fixate on inflation, which is going to stay high and sticky at least over the next couple of quarters,” Luke Barrs, global head of fundamental equity client portfolio management at Goldman Sachs Asset Management, said on Bloomberg TV.
Key events this week:
US CPI, US initial jobless claims, Thursday
Fed officials Lorie Logan, Esther George, Loretta Mester speak at events, Thursday
US University of Michigan consumer sentiment, Friday
Some of the main moves in markets:
Stocks
The S&P 500 fell 2.1% as of 4 p.m. New York time
The Nasdaq 100 fell 2.4%
The Dow Jones Industrial Average fell 1.9%
The MSCI World index fell 1.6%
Currencies
The Bloomberg Dollar Spot Index rose 0.6%
The euro fell 0.6% to $1.0011
The British pound fell 1.7% to $1.1349
The Japanese yen fell 0.6% to 146.52 per dollar
Cryptocurrencies
Bitcoin fell 13% to $16,216.08
Ether fell 13% to $1,163.86
Bonds
The yield on 10-year Treasuries declined two basis points to 4.11%
Germany’s 10-year yield declined 11 basis points to 2.17%
Britain’s 10-year yield declined 10 basis points to 3.46%
Commodities
West Texas Intermediate crude fell 3.7% to $85.58 a barrel
Gold futures fell 0.5% to $1,707.80 an ounce
— With assistance from Vildana Hajric, Muyao Shen, Tassia Sipahutar, Srinivasan Sivabalan and Isabelle Lee.
