#CryptoCorner: #Bitcoin Still in the Red After Brief Spike Following QE4 Announcement, Hut 8 (TSX: $HUT.TO) Reveals Cost-Saving Measures Amid Market Chaos, Bakkt (NYSE: $ICE) Raises $300M in Series B Funding Round
#CryptoCorner: #Bitcoin
Still in the Red After Brief Spike Following QE4 Announcement, Hut 8 (TSX: $HUT.TO)
Reveals Cost-Saving Measures Amid Market Chaos, Bakkt (NYSE: $ICE) Raises $300M
in Series B Funding Round
Point Roberts, WA, Delta BC March 16, 2020
- Investorideas.com, a leader in crypto and blockchain investing news brings
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Listen
to today’s Crypto Corner Podcast:
Bitcoin Still in the Red After Brief Spike Following
QE4 Announcement, Hut 8 Reveals Cost-Saving Measures Amid Market Chaos and
Bakkt Raises $300M in Series B Funding Round
Stocks discussed: (TSX:HUT) (NYSE:ICE)
Following last
week’s market devastation, Bitcoin (BTC) more or less
plateaued at a trading price of just above $5,000 over the weekend, after
having fallen from around $7,500 last Thursday. Now, as we’re entering a new
week, Bitcoin is down another nine percent in the last 24 hours and is posting
a current trading price of $4,850, according to data from CoinMarketCap. This, of course,
comes amid a general calamity seen in traditional markets as a response to
global panic over the worsening Coronavirus pandemic. Crypto’s continued
mirroring of the traditional markets’ downturn is presenting a challenge to the
perception of it as a safe haven, though it bears repeating that the market
chaos has affected other traditionally safe haven assets like gold to some
extent.
The Federal Reserve
has responded to this widespread market turmoil with the reintroduction of a
zero interest rate policy, and $700 billion in quantitative easing comprising
$500 billion of Treasury bonds and $200 billion of mortgage-backed securities. CNBC quotes Fed chair
Jay Powell on the interest rate cut:
“We will maintain the rate at this level until we’re
confident that the economy has weathered recent events and is on track to
achieve our maximum employment and price stability goals.”
Within an hour of
the Fed’s announcement, Bitcoin rallied 7.7 percent, according to CoinDesk, though as we’ve
discussed, these gains have since dissipated. Additionally, the Fed’s move has
not seemed to have impacted stock market indexes, which are decidedly in the
red today. Commenting on the Fed’s decision, ShapeShift CEO Erik Voorhees tweeted:
It's great how they use the powerful term
"injecting liquidity" when what's actually happening is
"printing money and buying things with it."
Given that the
ability of central banks to print money at will is one of the major arguments
for Bitcoin, which has a built-in scarcity, this may still have a bullish
effect on the crypto market.
Hut 8 Mining Corp.
(TSX:HUT) has responded to
the Bitcoin crash with the announcement that it “is
optimizing its mining operations by running its mining equipment in
cost-efficient modes.’ The statement continues:
“This has the ability to reduce its electricity
consumption and costs by approximitely 50% while only reducing the hashrate
output by approximitely 35%. While this optimization reduces total output, the
overall overall margin is maximized and our costs are reduced.”
Hut 8 stock is down
about 20 percent at press time.
Bakkt, the crypto
subsidiary of Intercontinental Exchange (NYSE:ICE), has raised $300
million in a Series B funding round, according to a company blog
post
today. Bakkt CEO Mike Blandina writes:
I’m excited at our potential to unlock nearly $1
trillion of digital assets when the Bakkt app launches this summer. With the
completion of our Series B financing and recent acquisition of Bridge2
Solutions, Bakkt is now a team of 350 employees and powers the loyalty
redemption programs for 7 of the top 10 financial institutions and over 4,500
loyalty and incentive programs including two of the largest US airlines. We
have the unique opportunity to leverage the technology, infrastructure and
partners across our businesses to bring innovative new products to market and
in doing so expand access to the global economy.
Sam
Mowers, Investorideas
For
investors following the sector Investor Ideas has a comprehensive Bitcoin, Blockchain
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