- Bitcoin price briefly dropped below $11,000 on Friday before recovering to about $13,000.
- It’s down from $20,000 a few days ago — a fall of about 45% from its peak.
- Fears now abound that a major crash in the cryptocurrency’s price could be underway.
- Bitcoin’s crash has spread into other cryptocurrencies.
LONDON — The price of bitcoin dropped more than $4,600 on Friday, sparking fears that a major crash in the world’s biggest cryptocurrency could be underway.
By 2.20 p.m. GMT (9:2o a.m. ET) the price of one bitcoin was down almost 30%, or $4,680, to trade below $11,000.
But by 4.30 p.m. GMT (11.30 a.m. ET) it had recovered a little, trading just 20% lower, as the chart below illustrates:
Screen Shot 2017 12 22 at 16.33.57 Markets Insider
At its lowest point so far on Friday, bitcoin was down as much as 45% from its recent high of nearly $20,000.
As is often the case with large-scale moves in either direction for bitcoin, there doesn’t seem to be any obvious catalyst for the sell-off. But given the general lack of liquidity in the market, small moves can turn into big ones very quickly.
Earlier in the week, bitcoin’s price started to plunge after one of the founders of the influential website Bitcoin.com announced he would sell his stake in bitcoin.
Unlike more traditional markets, bitcoin has no mechanism to halt trading when there are large losses in its value. These are known as circuit breakers, and they automatically pause trading when assets fall by a set percentage.
As Business Insider Australia’s Paul Colgan and David Scutt pointed out, Friday’s sell-off has had a ripple effect on other major cryptocurrencies.
“The price action appears to be spilling over into other cryptocurrencies, with the second-largest by overall market value, Ethereum, down 26%, and bitcoin spinoff bitcoin cash — which was moving in the opposite direction to bitcoin earlier this week — down a whopping 38% in 24 hours, according to CoinMarketCap,” they wrote.
Earlier this week, Garrick Hileman, an economic historian at the University of Cambridge, told Business Insider he thought cryptocurrencies could trigger the next financial crisis if they became a systemic risk to the financial system.
Via Business Insider
Dollar Slips On Fears Over U.s. Tax Reform Delay
LONDON (Reuters) – The dollar slipped against most major currencies on Wednesday, weighed down by worries over possible delays to Donald Trump’s tax reform plan and evidence of the U.S. president’s waning popularity.
FILE PHOTO – A U.S. Dollar note is seen in this June 22, 2017 illustration photo. REUTERS/Thomas White/Illustration/File Photo
The greenback had risen to a 3-1/2-month high against a basket of currencies in recent weeks, helped by expectations that Trump’s administration would deliver tax cuts, after the U.S. Senate approved a budget blueprint for such reforms.
But the Washington Post, citing unidentified sources, reported on Tuesday that Senate Republican leaders are considering a one-year delay in the implementation of a major corporate tax cut to comply with Senate rules.
Any potential delay in the implementation of tax cuts, or the possibility of proposed reforms being watered down, would tend to work against the U.S. currency, analysts said.
“The initial phases of discussions within the House have brought up a lot of divisions and problems, so the House version itself is going to change before we’ve even got wind of what the Senate version is going to be,” said MUFG’s European head of global markets research in London, Derek Halpenny.
“If the story is true that they’re considering a delay of one year to the corporate tax cut, those big differences will need to be sorted, so we continue to be dubious on that proceeding.”
Halpenny added that a Wall Street Journal poll on Tuesday showing Trump’s approval rating falling sharply, even in counties that had voted for him, was adding to a picture of an increasingly unpopular president, with that unpopularity potentially emboldening members of Congress to oppose his plans.
The dollar was down 0.1 percent against its basket at 94.797 and down 0.2 percent against the euro, which was trading at $1.1606.
The currency has slipped steadily over the past few weeks, pressured by the divergence in the monetary policies of the European Central Bank and the U.S. Federal Reserve.
“The ECB is likely to be generally pleased, as it has managed to reduce its asset purchasing programme further without this causing major distortions on the market – i.e. a strong rise in yields and euro exchange rates,”
“With the exception of a reduced monthly purchasing volume they did not accept any signal that the purchasing programme might end imminently,” wrote Commerzbank analysts in a note to clients.
“Until an end of the purchasing programme is in sight the first rate hike seems an increasingly distant prospect. Bad news for euro bulls,” they added.
The dollar was also down 0.2 percent at 113.75 yen, falling from an eight-month high of 114.735 touched on Monday, and was down 0.1 percent against a basket of six currencies as U.S. Treasury yields continued to decline.
Additional reporting by Shinichi Saoshiro in Tokyo; Editing by Matthew Mpoke Bigg
FOREX-Dollar steady above 1-week low; eyes on U.S. jobs data
SINGAPORE, Nov 3 (Reuters) – The dollar held steady versus a basket of currencies on Friday, as focus shifted to U.S. jobs data, with President Donald Trump’s nomination of Federal Reserve Governor Jerome Powell to be the next Fed chair coming as no surprise.
- Markets unfazed by Jerome Powell as Fed Chair pick
Dollar index steady above 1-week low set on Thursday
Pound nurses losses after BoE’s “dovish” rate hike
Aussie slips after disappointing retail sales
Trump on Thursday tapped Powell to lead the U.S. central bank, breaking with precedent by denying incumbent Janet Yellen a second term but signalling a continuation of her cautious monetary policies.
Trump’s decision was in line with what market participants had been expecting, and the dollar showed limited reaction after the news.
The dollar index last stood at 94.696, having pulled up from a one-week low of 94.411 set on Thursday.
The greenback had slipped on Thursday after Republicans in the U.S. House of Representatives released proposals to overhaul the tax code.
Republicans called for slashing the corporate tax rate to 20 percent from 35 percent, cutting tax rates on companies’ foreign profits and on individuals and families. Congressional passage of the legislation, however, was far from certain.
While the contents of the tax reforms seem positive for the dollar, there is still uncertainty over how quickly it can be implemented, said Stephen Innes, head of trading in Asia-Pacific for Oanda in Singapore.
“This could be quite a drawn out process,” Innes said, adding that U.S. jobs data due later on Friday, would be a near-term focus for the dollar.
Against the yen, the dollar eased 0.1 percent to 113.94 yen , trading below a 3-1/2 month high of 114.45 yen that had been set last Friday. The euro held steady at $1.1659.
Sterling nursed its losses after suffering its biggest one-day fall against the dollar since June on Thursday, as the Bank of England raised interest rates for the first time in more than a decade but said it sees only gradual rises ahead.
Sterling held steady at $1.3056, after having tumbled 1.4 percent on Thursday.
The BoE voted 7-2 to increase its benchmark Bank Rate to 0.50 percent from 0.25 percent, but said it expected only “very gradual” further increases.
The Australian dollar slipped 0.3 percent to $0.7689 , coming under pressure after data showed that Australian retail sales were flat in September, coming in below market expectations for a rise of 0.4 percent on the month. (Reporting by Masayuki Kitano; Editing by Eric Meijer)
By Masayuki Kitano
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Craig Murray, Former Ambassador Exposes The Attrocities Of The British Government (Must Watch)
In this video Craig Murray, a former British Diplomat said, I worked in the British Foreign office. I became the British Ambassador. I was a British diplomat for 20 years. I was alway patriotic to be British. I was very very proud, I remember when I first became a British Ambassador and I first went out on my own flag car with the Union Jack flying on the front as the Ambassador.
I had a lump on my throat, it’s a proud moment for me. It was only 6 months and I discovered that in a country where I was Ambassador, we and Americans were shipping people in order for them to be tortured and some of them were tortured to death. Now as you may imagine, my world view changed.
It was at the same time about a month later we invaded Iraq against the will of the Security Council. Not just without the will of the security council. But in the full knowledge that if we had gone to the security council, we would be voted down. I as a British diplomat, I saw all the internal memos that went through all that decision. I know for a certain.
“ Anybody who is voting ‘no’ is voting to support a psychologically flawed, pathologica state, which is a danger to the world. A rogue state. A state prepared to go to war to make a few people wealthy.”
I used to be head of FCO unit that monitored Iraqi weapons of mass destruction. I know for certain I can tell you they knew there weren’t any. It wasn’t a mistake, it was a lied. I think it is impossible to be proud of the United Kingdom. I think when we invaded Iraq, we did to the United Nations what Hitler and Mussolini did to the League of Nations. And I think what we’ve done since where the truth is often much hidden in the bombing.
If we look at Libya, disaster now. We bombed it. We killed fifteen thousand people (15000) when NATO bombed it. Something they never told you on the BBC. Did we make it better? No. I saw in Uzbekistan. I saw the gas contracts signed by Imron. A company called Unical, which George Bush Snr was on board.
It’s a big gas pipeline from Uzbekistan and Kazakhstan over Afghanistan down to the indian ocean. That was actually what the Afghan war was about. They had actually had talks with the Taliban and Unical to see if the Taliban would provide pipeline security.
The person who held those talks, the consultant of Unical was a certain Mr Kassi. Who after being employed by George Bush Snr as consultant went on to become president of Afghanistan. That was their plan B. The Taliban wouldn’t do it so they invaded. I’ve seen it on the inside. It’s almost always about control of resources. It is every bit as corrupt. I can tell you it is not an academic construct.
The system stinks, Westminster stinks. The British Government is deeply deeply immoral. They don’t care how many people they kill abroad if advances them and anybody who is voting ‘no’ is voting to support a psychologically flawed, pathologica state, which is a danger to the world. A rogue state. A state prepared to go to war to make a few people wealthy. That’s why I say it’s not possible to be a decent person and vote ‘no’ and we shouldn’t be ashamed to say that.
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