A hamster has been trading cryptocurrencies in a cage rigged to automatically buy and sell tokens since June – and it’s currently outperforming the S&P 500

Crypto trading hamster rig
The “Goxx Box.”

  • A hamster named Mr. Goxx has been trading cryptocurrencies in a rigged box since June.
  • The hamster determines which crypto to buy or sell by running on a wheel and strolling through one of two tunnels.
  • Since it started trading on June 12, Goxx’s crypto portfolio returned 24% as of Friday.
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A hamster in Germany is redefining “A Random Walk Down Wall Street” author Burton Malkiel’s belief that a blindfolded monkey throwing darts at a stock ticker list in the newspaper could do just as good as a human investment professional.

The livestreamed hamster, named Mr. Goxx, has been independently trading a portfolio of various cryptocurrencies since June 12, and so far its performance has been impressive. As of Friday, the portfolio was up nearly 24%, according to the @mrgoxx twitter feed that documents daily performance, along with every trade made by the hamster. Mr. Goxx’s performance outpaces bitcoin and the S&P 500 over the same time period.

Mr. Goxx’s caretaker built the “Goxx Box,” a crypto-rigged office attached to its larger home that gives the hamster the ability to perform various exercises that then execute specific cryptocurrency trades. The hamster can enter its office whenever it wants to make trades.

First, Goxx runs on the “intention wheel” to pick which one of about 30 cryptocurrencies to trade. Once the crypto is chosen, the hamster runs through one of two “decision tunnels” that trigger either a buy or sell trade of the chosen cryptocurrency.

The top cyptocurrencies currently held by the hamster include Tron, Ripple’s XRP, cardano’s ada, and ether.

Goxx’s portfolio was funded with the euro equivalent of $390, according to a report from Protos. Mr. Goxx’s unidentified caretaker and business partner told Protos that the trades the hamster makes are automatically set to 20 euro increments.

“There are plans to give Mr. Goxx more control and let him intentionally pick his buy amount if the interest in his channel keeps growing,” the business partner told Protos.

Mr. Goxx has so far generated profits of 77 euros as of Friday afternoon. Its portfolio hit a high of nearly $580 in mid-September, when its performance was up nearly 50% in less than three months, according to performance data compiled by Protos. But since then, the recent crypto sell-off put a dent into the hamster’s profits.

But a profit is a profit, and Mr. Goxx likely understands that. “Mr. Goxx is happy to see that some of his investments finally pay off,” the business partner told Protos.

Mr. Goxx's performance as of September 10
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China’s crypto crackdown is shaking markets, but it’s been trying to rein in the sector for years. Here’s a timeline of Beijing’s regulatory sweep.

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China bitcoin mining crackdown Chinese flag cryptocurrencies
China is increasingly cracking down on bitcoin.


It was deja vu all over again for some cryptocurrency investors on Friday after China said it would ban all cryptocurrency-related transactions.

The People’s Bank of China said in a statement that virtual currencies “are not legal and should not and cannot be used as currency in the market.” Bitcoin fell as much as 8% on Friday following the news, while several other crypto coins like ether, litecoin, and Solana fell nearly 10%.

But China’s hostile stance to bitcoin has been well known, as the country implemented its first “ban” in 2013. Since then, China has been attempting to rein in the booming digital asset sector with various restrictions targeting different areas of the market.

Today’s moves were the most forceful so far against cryptocurrencies. Still, despite all of the bans, Beijing has stopped short of making it illegal for Chinese citizens to hold onto their digital cryptocurrencies.

Here’s a timeline of all the regulatory actions China has imposed on cryptocurrencies since 2013, many of which occurred amid a volatile rally in bitcoin and other altcoins.

December 2013: China bans banks from handling bitcoin transactions

The People’s Bank of China said in a statement that bitcoins are a “virtual good” that has no legal status and shouldn’t be used as a currency. This was effectively the first ban towards crypto applied to major financial institutions within the country. Many believe the ban was implemented due to a surge in interest among Chinese citizens amid a strong bull run in bitcoin.

September 2017: China orders local cryptocurrency exchanges to cease operations

The country banned initial coin offerings and ordered all domestic cryptocurrency exchanges to end operations within the country. The move came amid a strong bull market for bitcoin which eventually topped out near $20,000 in late 2017.

May 2021: China bans various financial institutions and payment firms from offering crypto services

The country reiterated its prior bans from 2013 and 2017, citing the dangers of speculative trading in the crypto coins, and cemented the ban for various payment platforms and business activities related to cryptocurrencies.

June 2021: China ramps up crypto mining crackdown

The country set its eyes on banning cryptocurrency mining with various regulations towards the sector. Following the new rules, bitcoin mining immediately moved overseas to more crypto friendly countries, including the US. China cited environmental concerns and excessive energy consumption as reasons for its new restrictions.

September 2021: China bans cryptocurrency-related transactions

The country made cryptocurrency-related transactions illegal and forbid overseas exchanges from serving its citizens. Coins such as bitcoin and ether “are not legal and should not and cannot be used as currency in the market,” the People’s Bank of China said in a statement. The ban effectively ends trading for cryptocurrencies, though it is currently not illegal for its citizens to hold the asset.

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Morgan Stanley’s Dennis Lynch says bitcoin’s ability to recover is like the character Kenny from South Park that ‘dies every episode’

South Park and death
South Park and death

  • Morgan Stanley’s Dennis Lynch compares bitcoin’s ability to bounce back to the character Kenny from South Park.
  • Lynch, who heads up an asset management subsidiary of the bank, said bitcoin is “anti-fragile”.
  • He said people will look at bitcoin as “digital gold”, or even as a currency in its own right, given the low-rate environment.
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Bitcoin’s ability to bounce back from even the deepest sell-off is like South Park character Kenny’s comical ability to return to life after dying in each episode of the long-running cartoon series, according to Morgan Stanley’s Dennis Lynch.

Lynch, who heads up Morgan Stanley asset management subsidiary Counterpoint, was discussing bitcoin at Morningstar’s annual investment conference on Thursday.

“I like to say that bitcoin’s kind of like Kenny from South Park – he dies every episode, and is back again,” he said.

Bitcoin’s extreme volatility means it’s just as capable of rallying 10% in a day as it is of falling 10%. It’s seen a number of sell-offs this year, most recently at the start of this week, when it dropped by almost 9% in a day on Monday to its lowest in six weeks, as part of a broader market decline on the back of concerns about indebted Chinese property firm Evergrande.

But it’s since risen by about 14%, more than recouping those losses. In fact, bitcoin has fallen by 10% or more on a single day on at least six occasions this year, and every time, it’s bounced back.

Like Kenny of the Comedy Central franchise, bitcoin just keeps coming back, Lynch said.

“I think (bitcoin) demonstrates some ‘anti-fragile’ qualities during this period of time – anti-fragile being something that gains from disorder,” he said.

“It kind of sits in the portfolio in a small manner, that it is something that can go right when the rest of our portfolios have something going wrong,” he said.

Part of the boom in cryptocurrency demand this year has stemmed from ultra-low interest rates that have depressed the dollar and driven investors into riskier, higher-yielding assets.

“I can envision (bitcoin) benefiting from different environments, whether people look at it as a digital gold, or people start to really question (the) fiat currency, given all the stimulus and the policy there – (since) the Fed has had to be so accommodating,” Lynch said.

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Bullish sentiment toward crypto assets increases with 8 of 10 people seeing bitcoin bounce above $56,000 by year’s end, says Voyager Digital

A hand holds a bitcoin toward the sky in this photo representation of the cryptocurrency.
Bitcoin.

  • Bitcoin is poised to rise above $56,000 by year’s end, a wide majority of survey respondents told Voyager Digital.
  • The cryptocurrency-asset broker also found that more people are bullish in bitcoin vs. the prior quarter.
  • The uptick in bullish crypto sentiment comes in the face of increased regulatory scrutiny.
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Crypto investors have grown more optimistic about the price outlook for bitcoin and other digital assets in the last quarter, even in the face of more regulatory scrutiny, a new survey from Voyager Digital shows.

According to the cryptocurrency-asset broker’s third-quarter sentiment survey results sent to Insider, 8 out of 10 are bullish on bitcoin over the next three months. That’s an uptick from the second quarter, when 7 out of 10 respondents held a bullish view on the market.

The latest survey also found 8 out of 10 see bitcoin topping $56,000 by the end of 2021, representing a 27% rise from Thursday’s price at around $44,000.

“As our user base continues to grow and digital asset adoption increases, our survey results suggest that a greater number of investors see Bitcoin as a better store of value compared to more traditional asset classes such as stocks, real estate, and government bonds,” Steve Ehrlich, Voyager’s founder and CEO, said in the survey statement.

“This is significant when you consider that over a fifth (22%) of respondents have been investing in crypto for over two years,” and that it’s likely many of them will consider not having exposure to traditional asset classes again, he said.

The results also showed 40% expect bitcoin to trade above $71,000 at some point in the fourth quarter, topping the all-time high of $64,863 reached in April. The prior sentiment survey released in June said 38% had expected bitcoin to finish the third quarter between $56,000 and $70,000.

Among altcoins, 40% of investors surveyed by Voyager were bullish on Cardano’s ada token followed by ethereum at 16%.

Scrutiny of the crypto market continued during the third quarter as US regulators sought more avenues to oversee the market. The Treasury Department and other agencies are quickly moving to target stablecoins for tighter regulation, The New York Times reported Thursday.

And Securities and Exchange Commissioner Gary Gensler likened stable coins to “poker chips” in an interview with the Washington Post this week.

He has also called on lawmakers to give the agency authority to legally monitor crypto exchanges. Last week, he said those exchanges need to “come in and talk” to the agency, just days after clashing with trading platform Coinbase over a lending product. Coinbase has since dropped its plans for Lend.

Meanwhile, big-money investors are shying away from bitcoin futures and pivoting to ethereum futures as expectations for bitcoin soften, according to JPMorgan analysts. They noted that in September, bitcoin futures on the Chicago Mercantile Exchange have traded below the price of an actual bitcoin.

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Crypto billionaire Mike Novogratz says bitcoin holding at $40,000 shows the market is in good shape – and recommends buying the dip

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Mike Novogratz is one of the biggest names in crypto.

  • Mike Novogratz said bitcoin bouncing off $40,000 is a good sign for the crypto market.
  • He said he’s not worried about the recent sell-off and that it’s a “buy-the-dip” opportunity.
  • Bitcoin and ether fell sharply on Monday as the Evergrande crisis rattled financial markets.
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Billionaire crypto investor Mike Novogratz has said bitcoin holding firm at $40,000 during the recent sell-off is a good sign for the market, and recommended buying the dip in digital assets.

Speaking after cryptocurrencies sold off sharply at the start of the week, Novogratz told CNBC earlier this week that he thought the market remained in good shape. Cryptocurrency prices rallied on Thursday, with bitcoin and ether rising along with altcoins.

“We held $40,000 overnight in bitcoin and $2,800 in ethereum. I think those are very important levels for people to watch. As long as those hold a think the crypto market is in good shape,” he said.

Bitcoin rallied 5% to $44,159 on Thursday, according to Coinmarketcap, while ether – the cryptocurrency on the ethereum network – rose 6.4% to $3,122.

Yet both remain considerably lower than on Monday, when bitcoin stood above $47,000 and ether was above $3,300. They fell sharply on Monday, with bitcoin testing $40,000 on Tuesday, as worries about Chinese property developer Evergrande shook markets, causing investors to ditch riskier assets.

Read more: 3 altcoins to buy: a crypto consultant explains why ether could surge to $15,000 and flip bitcoin, and criticizes one token as an overvalued ‘joke’

Novogratz said he’s not nervous about the declines, however, and said he thinks it’s a “buy-the-dip” situation.

The crypto billionaire, a former hedge fund boss who founded the digital assets investment firm Galaxy, said he’s seeing lots of engagement and activity in the crypto market. He pointed to SoftBank’s participation in a $680 million funding round for sports NFT marketplace Sorare.

Novogratz said he thought Monday’s sell-off was also driven by concerns about regulation in the US. “The market got itself a little too long,” he said.

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Bitcoin’s claim to be digital gold loses its shine after the token plunges alongside stocks in the Evergrande sell-off

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Bitcoin tumbled on Monday along with stocks.

  • Bitcoin’s claim to be digital gold was delivered a blow when it sold off alongside stocks on Monday.
  • The world’s biggest cryptocurrency tumbled over 8% as fears about Evergrande’s debt shook markets.
  • Data from Bloomberg shows that bitcoin’s correlation with stocks has been rising of late.
  • See more stories on Insider’s business page.

Bitcoin fans often say the world’s biggest cryptocurrency is “digital gold” – a safe-haven asset that investors can turn to at times of market stress or high inflation.

Yet that view was dealt a blow on Monday, when the digital currency crumbled along with stocks as Chinese property developer Evergrande’s debt crisis roiled markets.

Bitcoin tumbled 8.5% on Monday, according to Bloomberg data, while the S&P 500 fell 1.7% in its worst day since May and the tech-heavy Nasdaq 100 dropped 2.1%. Other cryptocurrencies, such as ether and cardano, also plunged.

Meanwhile, gold and government bonds rallied as investors turned to assets that are traditionally seen as safe places for investors to hide during market volatility.

Billionaire investor Ray Dalio is among those to have said bitcoin could be a diversifying asset in portfolios, while crypto bulls such as Mike Novogratz have long hailed it as digital gold. But a number of analysts said Monday’s sell-off showed there are problems with that argument.

“It’s funny, [bitcoin] always sells off when risk takes a hit,” said Neil Wilson, chief market analyst at trading platform Markets.com.

“That’s because it is the most risky asset, so it’s the first to dump when there is liquidating of positions, margin calls, et cetera, to worry about.”

Read more: A 26-year-old crypto millionaire shows us the tools he uses to make the best trades and stay on top of tokens before they trend

Data from Bloomberg showed that bitcoin’s correlation to the S&P 500 has been growing and is at its highest level in a year.

Naeem Aslam, chief market analyst at AvaTrade, said institutional investors in particular see cryptocurrencies such as bitcoin as risky assets. This means they are inclined to ditch them to cover other positions when stock markets take a tumble.

Cryptocurrencies’ wild volatility limits their appeal as diversifying assets, according to a report released by UBS Global Wealth Management this week.

However, bitcoin has other benefits for those who can stomach the wild ride, the UBS unit said, noting that it saw much higher returns than gold between 2016 and 2021. Bitcoin has risen around 290% in the last year.

Crypto advocates argue that bitcoin and other cryptocurrencies are still relatively young, and that their volatility is likely to decline as the market grows and matures.

Bitcoin was down 2.1% on Tuesday to $42,620, while the S&P 500 was up 0.15% as of 11.10 a.m. ET.

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Bitcoin enters make-or-break mode amid sharp sell-off as key technical levels come into focus

Bitcoin
Bitcoin

  • Bitcoin’s steep sell-off on Tuesday has the cryptocurrency testing key technical levels.
  • How bitcoin reacts at these levels will help traders assess trend direction in the cryptocurrency.
  • “The long-term outlook remains bullish, supported by an upward sloping 200-day moving average,” technical analyst Katie Stockton said.
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Bitcoin’s volatile sell-off on Tuesday has the cryptocurrency testing make-or-break levels as key technical price points come into focus.

Bitcoin fell as much as 17% on Tuesday as El Salvador officially accepted the digital token as legal tender. The spike in volume and heightened market activity led to a flood of trade orders that ultimately caused service outages at popular crypto-exchange platform Coinbase.

Now traders are eyeing key technical levels in bitcoin that could help assess the direction of trend for the cryptocurrency going forward.

Bitcoin had confirmed a breakout above key $51,000 resistance on Monday with consecutive daily closes above that level. But Tuesday’s plunge creates the potential for a failed breakout that could lead to more downside if key support levels aren’t held.

Those support levels include a cluster of moving averages that are all converging between $43,000 and $46,000. The 50-day moving average currently sits around $44,400, the 200-day moving average currently sits around $46,000, and the 10-week moving average is near $43,000.

Finally, a horizontal resistance level around $47,000 is coming into play as it was previously held as support amid bitcoin’s rally to a high of $65,000 in the first few months of 2021. In technical analysis, an often-followed rule is that old support becomes new resistance. With bitcoin currently trading at $46,247 at time of publication, that level is proving to be resistance while the moving average cluster is acting as support.

According to technical analyst Katie Stockton of Fairlead Strategies, the long-term outlook remains bullish for bitcoin even amid recent choppiness.

“The long-term outlook remains bullish, supported by an upward sloping 200-day moving average,” Stockton explained in a note on Tuesday, adding that long-term momentum remains positive.

Accordingly, if bitcoin retakes the key resistance level of $51,000, Stockton believes a surge to its previous high of about $65,000 is in order. But a continued breakdown in bitcoin below both $47,000 and the cluster of moving averages would signal a leg lower to about $40,000, with further support levels found in the $30,000 range.

Bitcoin price chart
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Bitcoin drops another 5% a day after the crypto market shed $360 billion during El Salvador’s BTC rollout

Bitcoin el salvador protest
Many in El Salvador oppose the introduction of bitcoin as legal tender.

  • Bitcoin and ether fell further on Wednesday after plunging during El Salvador’s BTC rollout on Tuesday.
  • Analysts said price falls on Tuesday were accelerated by high levels of leverage in crypto markets.
  • Glitches on exchanges such as Coinbse and Kraken also worsened the situation, analysts said.
  • See more stories on Insider’s business page.

Bitcoin and ether fell again on Wednesday before regaining some ground after plunging during El Salvador’s bumpy bitcoin rollout the day before, with more than $360 billion wiped off the highly leveraged crypto market in just two days.

Bitcoin fell as much as 5% on Wednesday, according to Bloomberg data, before paring losses. It was 1% lower by 9.50 a.m. ET to trade at $46,347, after a two-day drop of 11%.

Ether, the second biggest cryptocurrency by market value, also fell as much as 5% before rebounding somewhat. It stood 0.6% lower at $3,390 early Wednesday, with its two-day fall coming to 14%, Bloomberg data showed.

Cryptocurrencies began to crater on Tuesday as El Salvador made bitcoin legal tender in a landmark moment for the world’s biggest cryptocurrency. The rollout was afflicted by glitches, with the small central American country’s Chivo wallet having to be taken offline.

“Bitcoin is lower on a ‘buy leading up to the big event, sell the fact’ reaction to El Salvador’s historic moment embracing bitcoin,” Edward Moya, senior market analyst at trading platform Oanda, said.

Bobby Ong, chief executive of crypto data company CoinGecko, agreed with Moya’s analysis and said the price falls were so steep due to the effects of leverage in crypto markets.

Read more: The head of research for a blockchain analytics firm breaks down why bitcoin and ethereum can reach $100,000 and $10,000 respectively by next year

Many of the world’s biggest cryptocurrency exchanges such as Binance allow users to borrow large sums to bet on the markets. Yet when prices fall, investors often have to sell out of their positions, or exchanges liquidate them automatically to limit losses.

Matt Blom, head of sales trading at Nasdaq-listed crypto firm Eqonex, said: “Heavy selling on derivatives platforms… caused a cascade of auto-liquidations, like a line of dominoes,” he said. “Over $2 billion of long positions were liquidated in under 20 minutes.”

Matters weren’t helped by problems on major cryptocurrency exchanges Coinbase, Kraken and Gemini, which led to transactions being delayed or canceled.

Coinbase said its issues were caused by “a sudden increase in network traffic and market activity” that led to a “degradation in our services.”

So-called altcoins such as cardano, binance coin, XRP and dogecoin were also nursing heavy losses after falling sharply on Tuesday and Wednesday. The Bloomberg Galaxy Crypto Index, which tracks a range of crypto tokens, was down 0.7% on Wednesday and had shed 11.5% over two days.

The total market value of all cryptocurrencies stood at $2.01 trillion on Wednesday, more than $360 billion below its Tuesday peak.

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Mike Novogratz says the bitcoin market got too excited before the latest crash – and singles out highly leveraged retail traders

Mike Novogratz
  • Crypto billionaire Mike Novogratz said Tuesday’s bitcoin crash came after the market got too excited.
  • He said retail investors using large amounts of leverage were a key factor in the sharp drawdown.
  • Bitcoin fell as much as 17% on Tuesday as the cryptocurrency became legal tender in El Salvador.
  • See more stories on Insider’s business page.

Crypto billionaire Mike Novogratz has said the latest plunge in bitcoin is the result of investors getting too excited about recent developments in the crypto space, and said excess leverage had fueled the volatility.

Bitcoin dropped as much as 17% on Tuesday after El Salvador’s rollout of the cryptocurrency as legal tender was afflicted by glitches. It was around 1% lower at $46,420 on Wednesday, down from above $52,000 early Tuesday.

“I think we just got too excited and this was a little air being popped out of the balloon,” Novogratz said in a Bloomberg TV interview on Tuesday. “The market got too long.”

Novogratz, who runs crypto investment firm Galaxy Digital and is an influential figure in the space, said large amounts of leverage in the system contributed to the steep falls.

“There’s lots of retail money, a lot of it’s leveraged,” he said. “There was about $4 billion of liquidations that happened in a short period of time… That’s mostly leveraged offshore in places like FTX and Binance.”

Read more: A research analyst at a $2 billion crypto firm lays out the bull case for polkadot that most investors are overlooking – and shares why cardano’s ada is looking overvalued after a stellar run

Exchanges such as Binance, Bybit and Huobi allow users to borrow large sums to trade with. Analysts said in recent weeks, traders had been using this leverage to “go long” – that is, bet that the price will rise – on bitcoin and other cryptos.

When cryptocurrency prices fall, traders who have gone long using leverage often sell out of their positions, or the exchange automatically liquidates them to limit losses. This often sends prices down further, triggering more liquidations in a cascade effect.

Novogratz told Bloomberg he thought the market had become excited with good reason. He said Visa buying a non-fungible token for $150,000 and Amazon posting a crypto job opening had made many people think the technology is here to stay.

He said he was confident El Salvador would succeed in its bitcoin rollout, saying the token could become used to send remittances.

“Whenever you’re doing a new technology rollout there are glitches,” he said. “Come back in six weeks or 12 weeks and let’s talk about how it’s working.”

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Bitcoin and ether plummet 17% as broad sell-off batters crypto on the day El Salvador adopts bitcoin as legal tender

Trader NYSE
  • Bitcoin and ether plummeted on Tuesday, the same day El Salvador adopted the crypto as legal tender.
  • The popular cryptocurrency fell from a high of about $52,000 to a low of about $44,000.
  • Bitcoin recovered some of its losses in afternoon trading and is now above its 50- and 200-day moving averages.
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The price of bitcoin and ether plunged on Tuesday, the same day El Salvador officially adopted the cryptocurrency as legal tender to help combat persistent hyper-inflation.

Bitcoin fell as much as 17%, while the sell-off spilled over to other cryptos including ether, which was down as much as 23% in Tuesday trades.

Bitcoin was trading near a key cluster of resistance levels around $52,000 before it plunged to a low of about $44,000. The cryptocurrency managed to find support at its rising 200-day moving average, and quickly bounced off of that level.

Ether fell from about $4,000 to as low as $3,200, both levels well above its 50-day and 200-day moving averages. The crypto pared its losses and was down about 12% at time of publication.

Bitcoin pared its mid-day losses to 11% at time of publication, with the cryptocurrency hovering just above its 50-day moving average of about $46,000. In the run-up to today’s official adoption of bitcoin, El Salvador purchased 400 bitcoins, and indicated that it plans to purchase “a lot more.” Those purchases were worth about $20 million.

To hasten the adoption of bitcoin as a means of legal tender, El Salvador will reportedly utilize crypto unicorn BitGo to code its official bitcoin wallet. But not everyone in El Salvador has been won over by the country’s bitcoin plans, with polls suggesting 75% of Salvadorians have reservations about the plan.

Tuesday’s sell-off in bitcoin and ether spilled over into other altcoins popular among crypto investors, with cardano, dogecoin, and litecoin all plunging more than 14%.

Bitcoin price chart
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