Bitcoin eyes new record above $61,000 as the crypto market’s focus turns to Coinbase IPO

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Bitcoin rose as much as 2.6% to $61,229 on Monday as the crypto world prepared for a week dominated by Coinbase’s direct listing on Wednesday. The surge took the coin close to its all-time high of $61,742 reached on March 13.

The world’s biggest cryptocurrency has since pared gains slightly, trading at $60,429.68 as of 9:05 a.m. in New York.

“There’s a lot of anticipation, some restlessness, maybe some anxiety in crypto markets today,” Justin d’Anethan, head of sales at Nasdaq-listed exchange Equos, told Insider.

“With BTC solidly in the upper 50Ks, everyone is looking to see if we can reclaim or surpass that last all-time high… seen a couple of weeks back,” he said.

The big event of the week in the cryptocurrency world is the direct listing of crypto exchange Coinbase on the Nasdaq on Wednesday.

It will be the first listing of a major crypto company, with Coinbase pulling in around $1.8 billion of revenue in the first quarter of 2021. The exchange said private market transactions valued the firm at about $68 billion in March.

D’Anethan added: “Coinbase’s IPO is definitely a supportive move for the space as it is bolstering the legitimacy of the asset class and offering investors new ways to interact with it.”

Edward Moya, senior market analyst at currency firm Oanda, said in an email “a disappointing IPO or excessive concerns over enhanced regulatory oversight could weigh on bitcoin and the other altcoins.”

Bitcoin has more than doubled in 2021 thanks to a renewed interest in digital currencies supported by huge amounts of stimulus from governments and central banks.

Now, many major institutions are moving into the crypto space, adding legitimacy to bitcoin and other currencies.

Yet cryptocurrencies continue to divide the financial world, with many figures saying they are too volatile to become serious investments for major players. Others argue they serve little purpose except speculation.

Read more: A 29-year-old self-made billionaire breaks down how he achieved daily returns of 10% on million-dollar crypto trades, and shares how to find the best opportunities

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Bitcoin investors should be more aware of its history of bubbles and price crashes, a crypto entrepreneur explains

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Bobby Lee said the history of bitcoin was one of bubbles bursting and growing again

  • Bitcoin investors need to be more aware of the asset’s history of big booms and busts, Bobby Lee said.
  • The crypto exchange founder said bitcoin is likely to shoot up further but then crash dramatically.
  • Yet Lee said he is optimistic about bitcoin long-term, seeing it as an inflationary hedge.
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Bitcoin investors should be more aware of the asset’s volatile history of bubbles and dramatic price crashes, crypto exchange founder Bobby Lee has said.

Lee told Insider that bitcoin’s history suggests it will continue shooting up but then is likely to crash dramatically “within a few hours.” He said bitcoin may rapidly lose 50% of its value and could then fall further over the coming years.

Bitcoin has soared in 2021, touching an all-time high of close to $62,000 in March, after falling below $4,000 in the same month a year earlier.

Analysts said the huge amounts of money pumped into economies by governments and central banks – which have supported asset prices across the board – have been a key driver.

Lee said bitcoin could potentially go to $300,000 in the latest bull market cycle. The cofounder of BTCC, one of the oldest crypto exchanges, said he’s attracted to bitcoin as a store of value at a time when fiat currencies risk losing value due to monetary stimulus.

Yet, the entrepreneur, who has recently written a book about bitcoin, said buyers should be more aware of the digital asset’s hugely volatile past.

“A lot of investors are getting in without knowing the history,” he said. “That’s just life, right? People buy real estate, not knowing the history of real estate bubbles, people buy stocks, not knowing about the history of stock market bubbles.”

He added: “Bitcoin history has shown that not only has it risen really fast, but after every bubble, the bubble bursts, after every bull market, the bubble does burst and it quickly falls.”

Lee said bitcoin could fall 50% rapidly, “and then it’ll be a bear market for the next two, three years.” At times, it could even fall as much as 90% from previous highs, he said.

“When bitcoin winter comes, when it crosses the 50% sell-off, that’s when people lose conviction and then people panic. They sell, and that’s what causes it to go down even further and sit at that low level for two or three years.”

Yet, Lee said he remained optimistic about bitcoin. “We just have to have the mental fortitude to hold onto it, what they call HODL… hold on for dear life.” He predicted it could even hit $1 million if it continues to go through boom-and-bust cycles.

Bitcoin continues to sharply divide the financial world, although many investors and institutions have been drawn to the cryptocurrency’s remarkable rally. JPMorgan, Morgan Stanley, BlackRock, and Tesla are some of the major corporations to get involved.

However, bitcoin skeptics argue that bitcoin’s massive volatility means its institutional adoption will be limited. Many argue its rise has been driven by huge amounts of stimulus and could falter once people return to normal life and spending patterns after the coronavirus pandemic.

They say it is set for a price crash similar to after 2017, when bitcoin plunged below $4,000 from about $20,000 in just over a year.

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Bitcoin rises 5% to $58,000 after Fed keeps policy steady and Morgan Stanley offers crypto funds

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Bitcoin has risen around 1,000% in the last year

  • The bitcoin price rose sharply overnight to close to $60,000 before slipping back to around $58,000.
  • The Fed stressed it would keep monetary policy loose, while stimulus checks are being sent out.
  • Morgan Stanley plans to give its rich clients access to bitcoin as institutional interest grows.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Bitcoin flirted with the $60,000 barrier again on Thursday after a sharp fall from record highs earlier in the week, with stimulus and institutional interest boosting the world’s biggest cryptocurrency.

The bitcoin price (BTC) was up 5.3% to $57,874 at 10.30 a.m. EDT, having earlier topped $59,500.

That was off a high of close to $62,000 touched on Saturday, but well up from a low of below $54,000 hit on Tuesday. Bitcoin has risen around 1,000% in a year.

Ethereum’s cryptocurrency ether (ETH) rose to $1,850 on Thursday before slipping back to around $1,790, up 1% for the day.

Edward Moya, senior market analyst at Oanda, said Wednesday’s Federal Reserve statement had helped the bitcoin price.

The Fed said it planned to keep supporting the economy until employment and inflation picked up and foresaw no interest-rate rises until 2024.

Huge amounts of stimulus have been a key driver of the bitcoin boom, and “an accommodative Fed until the job is done should keep the world’s largest cryptocurrency strongly supported,” Moya said.

Justin d’Anethan, head of exchange sales at Diginex, said stimulus checks being sent out to Americans was another factor.

More interest from big institutions also appeared to lift the coin, with Morgan Stanley planning to offer its rich clients access to bitcoin funds, according to CNBC.

D’Anethan said: “It seems that people are buying globally, nudged by Meitu, a Hong Kong listed company, buying yet another $50 million worth of crypto and, overnight, the news that Morgan Stanley will enable its wealthier clients to access BTC funds.”

Adrian Patten, chair of currency infrastructure-provider Cobalt, said: “With such high prices, both liquidity and volumes are increasing and catching up with the more traditional asset classes.”

Other market participants are more skeptical, however, with Bank of America saying on Wednesday that bitcoin does not provide diversification or inflation protection.

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Bitcoin rises 6% to flirt with $60,000 after Fed keeps policy steady and Morgan Stanley offers crypto funds

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Bitcoin climbed on Thursday morning

  • The bitcoin price rose sharply overnight to close to $60,000 before slipping back to around $58,300.
  • The Fed stressed it would keep monetary policy loose, while stimulus checks are being sent out.
  • Morgan Stanley plans to give its rich clients access to bitcoin as institutional interest grows.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Bitcoin flirted with the $60,000 barrier again on Thursday after a sharp fall from record highs earlier in the week, with stimulus and institutional interest boosting the world’s biggest cryptocurrency.

The bitcoin price (BTC) was up 6.3% to $58,280 at 7.20 a.m. EDT, having earlier topped $59,500.

That was off a high of close to $62,000 touched on Saturday, but well up from a low of below $54,000 hit on Tuesday. Bitcoin has risen more than 1,000% in a year.

Ethereum’s cryptocurrency ether (ETH) rose to $1,850 on Thursday before slipping back to around $1,810.

Edward Moya, senior market analyst at Oanda, said Wednesday’s Federal Reserve statement had helped the cryptocurrency market.

The Fed said it planned to keep supporting the economy until employment and inflation picked up and foresaw no interest-rate rises until 2024.

Huge amounts of stimulus have been a key driver of the bitcoin boom, and “an accommodative Fed until the job is done should keep the world’s largest cryptocurrency strongly supported,” Moya said.

Justin d’Anethan, head of exchange sales at Diginex, said stimulus checks being sent out to Americans was another factor.

More interest from big institutions also appeared to lift the coin, with Morgan Stanley planning to offer its rich clients access to bitcoin funds, according to CNBC.

D’Anethan said: “It seems that people are buying globally, nudged by Meitu, a Hong Kong listed company, buying yet another $50 million worth of crypto and, overnight, the news that Morgan Stanley will enable its wealthier clients to access BTC funds.”

Adrian Patten, chair of currency infrastructure-provider Cobalt, said: “With such high prices, both liquidity and volumes are increasing and catching up with the more traditional asset classes.”

Other market participants are more skeptical, however, with Bank of America saying on Wednesday that bitcoin does not provide diversification or inflation protection.

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Bitcoin tumbles 9% after hitting record high above $61,000

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  • Bitcoin fell as much as 9% on Monday as investors took profits following a weekend record.
  • The cryptocurrency climbed as high as $61,742.41 on Saturday and continued to flirt with $62,000 on Sunday.
  • The consolidation came amid reports that India is considering a partial ban on cryptocurrencies.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Bitcoin fell as much as 9% on Monday after hitting a record high over the weekend as investors scrambled to take profits.

The cryptocurrency slipped to $54,733.53 at intrasession lows after surging to $61,742.41 on Saturday and continuing to flirt with the $62,000 level through Sunday.

Crypto investors are also weighing the implications of a Reuters report that India will propose a law banning cryptocurrencies that would fine anyone for trading or holding it. The coin dipped on the news before recovering some losses after Finance Minister Nirmala Sitharaman walked back the report.

“Bitcoin quickly became an overheated market, triggering many crypto whales to lock in profits,” Edward Moya, senior market analyst at Oanda, told Insider. “The anticipation of a cryptocurrency ban in India was already telegraphed, but provided added fuel to the bitcoin pullback.”

Bitcoin’s latest leg down comes after the passing of President Joe Biden’s $1.9 trillion stimulus bill helped trigger the weekend surge. The decline also dragged other cryptocurrencies lower, with ether down as much as 7%, to $1,736.57.

The coin was down 5.5%, at $56,966.42, as of 9:35 a.m. in New York.

Read more: A Norwegian billionaire who just set up a $59 million unit to invest in the bitcoin ecosystem breaks down his 3-fold strategy – and shares why he believes the digital currency is actually a solution to many of its perceived challenges

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Bitcoin has surged to a record $60,000 as stimulus hopes and big-name backers fuel demand

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The surge marked a 1,000% gain in the past year.

  • Bitcoin hit a record $60,000 on Saturday, marking a 1,000% gain in the past year.
  • The cryptocurrency has benefited from institutional support and fiscal stimulus.
  • Mark Cuban and Kevin O’Leary are fans, Warren Buffett and Michael Burry aren’t.
  • See more stories on Insider’s business page.

Bitcoin surged as high as $60,000 for the first time on Saturday, lifting its price increase over the past year to more than 1,000%.

The cryptocurrency, which boasts a market capitalization of more than $1.1 trillion, has been buoyed by investor optimism. President Joe Biden signed a $1.9 trillion pandemic-relief bill into law on Friday, which will lead to $1,400 stimulus checks being distributed to millions of Americans, fueling hopes that the market boom will continue.

Bitcoin has also benefited from major institutional endorsements this year. Elon Musk’s Tesla plowed $1.5 billion into the cryptocurrency, Mastercard said it would allow merchants to accept select cryptocurrencies, and BlackRock has started to “dabble” with it as clients clamor for bigger returns.

“Shark Tank” billionaire Mark Cuban said this week that money is flowing into crypto because rock-bottom interest rates have reduced the appeal of bonds and other assets. People are also bored at home during the pandemic and see owning crypto as a source of entertainment, he continued.

Cuban argued bitcoin’s utility has increased massively with the rise of decentralized finance (DeFi) platforms. However, he dismissed the idea that it could serve as a currency or hedge against inflation.

One of Cuban’s “Shark Tank” costars, Kevin O’Leary, has warmed up to bitcoin after previously calling it “garbage.” He cited inflation risks and the advent of bitcoin ETFs as reasons for his change of heart, and plans to give the digital coin a 3% allocation in his portfolio.

However, other high-profile investors remain deeply skeptical of bitcoin. Warren Buffett has blasted it as “rat poison squared” and a worthless delusion. He warned that cryptocurrencies would come to a bad end.

Buffett’s business partner, Charlie Munger, recently said it was too volatile to serve as a medium of exchange, and advised others to follow his lead and not buy it.

Michael Burry, the investor who anticipated the collapse of the US housing market in the mid-2000s and made a fortune betting on that outcome, has warned bitcoin is a “speculative bubble” and predicted a “dramatic and painful fall.”

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Bitcoin’s energy consumption has jumped 80% since the beginning of 2020, according to a study from Cambridge

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The bitcoin price broke past the vaunted $50,000 mark for the first time on Tuesday

  • Bitcoin now uses 80% more energy than it did at the beginning of 2020.
  • Bitcoin uses 128 terawatt-hours annually, according to estimates from Cambridge.
  • The cryptocurrency is responsible for 0.59% of total worldwide energy consumption.
  • See more stories on Insider’s business page.

Bitcoin’s energy consumption has jumped 80% since the beginning of 2020 amid a meteoric rise for the digital currency.

According to Cambridge’s Centre for Alternative Finance, the cryptocurrency’s estimated annualized electricity consumption at the beginning of 2020 was 71.07 terawatt-hours. On March 11 of this year, that figure hit 128 terawatt-hours.

For reference, in all of 2019, Australia’s main electric grid used only 192 terawatt-hours. And the entire country of Argentina uses just 125 terawatt-hours annually.

Bitcoin now represents 0.59% of total worldwide energy consumption, according to Cambridge, and if you were to rank every country in terms of their total energy consumption including bitcoin, the digital asset would be the 29th largest consumer of power on the planet.

Bitcoin’s excessive energy use and climate change impact have been under scrutiny from all sides lately. Experts have repeatedly warned about the “staggering” amount of energy required to mine the digital currency.

Even Bill Gates has critiqued bitcoin for its environmental impact.

“Bitcoin uses more electricity per transaction than any other method known to mankind,” Gates said in a Clubhouse interview with New York Times reporter and CNBC co-anchor Andrew Ross. “It’s not a great climate thing.”

On the other hand, some experts say bitcoin’s energy use isn’t an issue as long as the energy comes from green sources, and it appears there has been a transition to using more green energy for digital currencies.

In September of last year the 3rd Global Cryptoasset Benchmarking Study, also from the University of Cambridge, showed 39% of the energy consumed by cryptocurrencies comes from renewable energy sources.

That’s a significant improvement from the 2nd Global Cryptoasset Benchmarking Study, which revealed that just 28% of the total energy consumed by crypto mining came from renewable sources.

Still, many experts contend cryptocurrencies have a long way to go if they want to silence critics of the coin’s climate change effects.

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Mike Novogratz says Mark Cuban is making a ‘mistake’ by backing Dogecoin – and says banks piling into bitcoin could send it to $500,000

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Mike Novogratz, pictured here with rapper Jay-Z, is a major investor in bitcoin

  • Mike Novogratz said Mark Cuban’s plan for the Dallas Mavericks to accept Dogecoin is a “mistake.”
  • He said the focus should be on bitcoin – which banks are “frantically” getting involved with.
  • Yet many seasoned investors remain skeptical about bitcoin’s uses and volatility.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Mike Novogratz has said he thinks Mark Cuban is making a “mistake” in letting Dallas Mavericks fans pay for tickets and merchandise in Dogecoin, calling it a “joke” currency.

The Galaxy Digital boss told Bloomberg TV bitcoin is where the action is, saying banks are “frantically” trying to get into the world’s biggest cryptocurrency, and that it could jump to $500,000 by replacing gold as investors’ favored hedging asset.

Mavericks owner Cuban said on Thursday he was taking the “fun” decision to let the NBA team start accepting Dogecoin, the meme cryptocurrency that started as a joke, but has a market capitalization of more than $6.4 billion.

Novogratz criticized the move, saying: “I think Mark’s making a mistake there. He’d be better off with 15 other ways to pay for his tickets.”

He raised concerns that young investors would get hurt by piling into Dogecoin. “Let’s put people in the safest, best stuff, not, you know, these joke coins,” he said.

Novogratz said he thinks bitcoin can soar to $500,000 in the future thanks to a “paradigm shift”, with banks “frantically trying to figure out how to get into crypto.” He cited interest from JPMorgan, which has supported customers investing, and Goldman Sachs, which has reopened a crypto desk.

The Galaxy boss, who is himself a major investor in bitcoin, said it is increasingly being seen as “digital gold” – in the sense that investors want to hold it as a store of value when they expect inflation. He said it is now an “institutional” asset class.

“We are in the middle of a paradigm shift,” he said. “And so bitcoin is wildly outperforming gold even though they’re both hedging the same thing. It’s outperforming because we’re in this once-in-a-generational adoption of crypto.”

Bitcoin was down 4% on Friday to $47,280, more than $10,000 off February’s all-time high. But Novogratz said investors need some “perspective”, flagging bitcoin is up around 60% on the year, while the S&P 500 index is flat.

Many seasoned investors are highly skeptical about bitcoin, however, and are expecting it to plunge again as it did in 2017. They argue it serves little purpose, as it is too volatile to be used as a currency.

In January, Elliott Management boss Paul Singer told clients in a letter reported by Bloomberg he thought bitcoin would eventually falter, bringing about a “we told you so” moment for him and colleagues.

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Cryptocurrencies are attractive as a ‘small part’ of any portfolio, George Ball says

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  • CEO of investment firmSanders Morris Harris, George Ball, said cryptocurrencies are “attractive” as a part of any portfolio.
  • Ball said he sees cryptocurrencies as an effective hedge against currency debasement.
  • The CEO also argued stock speculators will make the shift to crypto markets if there is a pullback in equities.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

George Ball told Yahoo Finance on Thursday that he believes cryptocurrencies are “attractive” as a “small part” of any portfolio.

Until recently, the chairman and CEO of investment firm Sanders Morris Harris had long been a critic of bitcoin and other cryptocurrencies.

In a video call with Reuters last August, Ball told investors that it was time to buy bitcoin.

“I’ve never said this before, and I’ve always been a blockchain, cryptocurrency and bitcoin opponent. But if you look now, the government cannot stimulate markets forever, the liquidity flood will end,” Ball said.

Now, Ball is again making the case for investors to consider digital assets.

“With the cryptocurrencies, I think there is a fundamental hydra-headed shift that makes them attractive as a part, a small part, of almost any portfolio,” Ball said.

Ball told Yahoo Finance that he believes cryptocurrencies are now ideal targets for investment by wealthy individuals and institutional investors for two main reasons. First, Ball argued cryptocurrencies will be an effective hedge against the debasement of fiat currency.

“Longer-term if inflation is back, if we start to debase the currency badly, then the cryptocurrencies have a great deal of allure,” Ball said.

Secondly, Ball believes the increase in retail traders who speculate on stocks could lead to rising crypto prices. Ball said that the retail investor market has gone from “5% trading volume to 30%, to maybe 35%, of all volume today.”

The CEO said retail stock speculators will move to cryptocurrencies if they begin to face losses in the equity market.

“So if the investors are losing money in common stocks, but still want to speculate, then the cryptocurrencies I think will be the logical and likely next focus of their combined, individually small, but combined very large dollars,” the CEO said. 

Ball’s bullish view of cryptocurrencies comes amid a historic run for bitcoin, which hit record highs of over $58,000 per coin in February buoyed by institutional investment and interest from Tesla, MicroStrategy, and Square, among others.

And with high-flying tech stocks struggling, Ball’s prediction of a shift from stock speculation to crypto speculation may prove prescient.

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Cryptocurrencies are attractive as a ‘small part’ of any portfolio, former Prudential Financial chief says

bitcoin
  • Former Prudential Financial CEO and current CEO of Sanders Morris Harris, George Ball, said cryptocurrencies are “attractive” as a part of any portfolio.
  • Ball said he sees cryptocurrencies as an effective hedge against currency debasement.
  • The CEO also argued stock speculators will make the shift to crypto markets if there is a pullback in equities.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Former Prudential Financial CEO George Ball told Yahoo Finance on Thursday that he believes cryptocurrencies are “attractive” as a “small part” of any portfolio.

Until recently, the chairman and CEO of investment firm Sanders Morris Harris had long been a critic of bitcoin and other cryptocurrencies.

In a video call with Reuters last August, Ball told investors that it was time to buy bitcoin.

“I’ve never said this before, and I’ve always been a blockchain, cryptocurrency and bitcoin opponent. But if you look now, the government cannot stimulate markets forever, the liquidity flood will end,” Ball said.

Now, Ball is again making the case for investors to consider digital assets.

“With the cryptocurrencies, I think there is a fundamental hydra-headed shift that makes them attractive as a part, a small part, of almost any portfolio,” Ball said.

Ball told Yahoo Finance that he believes cryptocurrencies are now ideal targets for investment by wealthy individuals and institutional investors for two main reasons. First, Ball argued cryptocurrencies will be an effective hedge against the debasement of fiat currency.

“Longer-term if inflation is back, if we start to debase the currency badly, then the cryptocurrencies have a great deal of allure,” Ball said.

Secondly, Ball believes the increase in retail traders who speculate on stocks could lead to rising crypto prices. Ball said that the retail investor market has gone from “5% trading volume to 30%, to maybe 35%, of all volume today.”

The former Prudential Financial CEO said retail stock speculators will move to cryptocurrencies if they begin to face losses in the equity market.

“So if the investors are losing money in common stocks, but still want to speculate, then the cryptocurrencies I think will be the logical and likely next focus of their combined, individually small, but combined very large dollars,” the CEO said. 

Ball’s bullish view of cryptocurrencies comes amid a historic run for bitcoin, which hit record highs of over $58,000 per coin in February buoyed by institutional investment and interest from Tesla, MicroStrategy, and Square, among others.

And with high-flying tech stocks struggling, Ball’s prediction of a shift from stock speculation to crypto speculation may prove prescient.

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