There is a bear market in Bitcoin.
That’s right, Bitcoin, the upstart cryptocurrency that aspires to become a medium for transactions as well as a store of value for investors, is down more than 20% from its 52-week high.
It happened fast. Bitcoin’s 52-week high was Feb. 21. It hit $58,350.41. Just five days later, Bitcoin is down almost 4% at about $46,127.
That puts Bitcoin off 21% from the high. A bear market is typically defined as a drop of more than 20%.
Bitcoin has become a monster in 2021. The total value of Bitcoins in electronic-circulation hit $1 trillion this past week. The Federal Reserve’s balance sheet, for comparison, is about $7.6 trillion.
It’s no coincidence that we mention the Fed. Bitcoin’s bear market comes as the central bank’s laissez-faire attitude toward the rise in Treasury yields—the 10-year note traded well over 1.5% on Thursday, before pulling back to 1.47% Friday morning—has started to hit speculative bets of all stripes.
Tech giants like
have been hit, as have the most expensive, speculative parts of the market, including
Zoom Video Communications.
Don’t expect the pain in Bitcoin to stop until the bond market calms down.
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Democratically-Held House Expected to Pass Stimulus. What Happens Next.
President Joe Biden’s $1.9 trillion stimulus bill will face its biggest challenge in the Senate starting next week after its expected passage by the House of Representatives today.
- The House version of the bill, which is expected to pass along party lines, largely mirrors Biden’s original American Rescue Plan released on Inauguration Day and includes $1,400 in direct cash payments to most Americans, an extension of federal unemployment benefits, and $350 billion in aid to state, local, and tribal governments.
- It will also include a provision to increase the federal minimum wage. That may be cut from the Senate version of the bill. The Senate parliamentarian ruled Thursday that the wage increase didn’t comply with the chamber’s rules for the budget reconciliation…