Displaying items by tag: crypto

Despite favorable regulatory developments and the announcement of a Strategic Bitcoin Reserve, crypto markets saw a sharp pullback in early March, with bitcoin, ether, and solana all declining. Some of the disappointment stemmed from the fact that the reserve would consist solely of assets seized through law enforcement rather than direct government purchases. 

Bitcoin’s latest quadrennial halving on April 20, 2024, historically a catalyst for massive rallies, has yielded a more tempered 30% gain so far, possibly due to more efficient market pricing. Ether and solana have closely tracked bitcoin’s movements, with correlations consistently high, reinforcing the idea that broader market sentiment is driving price action. 

Unlike previous post-halving periods, miners' transaction revenues have remained relatively stable, suggesting that extreme price volatility may be less likely this cycle. 

Finsum: Slowing  growth in transaction volumes hints at a maturing crypto market, with daily bitcoin transactions dipping in early 2025 even as futures trading remains active.

Hedge funds saw mixed results in February as market volatility surged amid trade tariff uncertainties. Fixed-income strategies performed well, benefiting from falling interest rates, while macro and equity hedge funds struggled due to sharp declines in technology stocks. 

The HFRI Fund Weighted Composite Index fell 0.47%, with relative value arbitrage and event-driven strategies posting gains that were outweighed by broader declines. Cryptocurrency funds took a significant hit, with the HFR Cryptocurrency Index dropping 16.8% as volatility spiked. 

Meanwhile, event-driven funds gained modestly, and fixed-income strategies extended their winning streak, marking another month of positive returns. 

Finsum: As hedge funds navigate volatile conditions, their ability to adapt remains key to delivering returns in uncertain markets.

Cryptocurrencies tumbled as concerns over a broader U.S. stock selloff overshadowed recent efforts by President Trump to support the industry. Bitcoin dropped more than 3% in early Asian trading, while Ether sank as much as 6% to its lowest level since October 2023 before recovering some losses. 

The decline followed a sharp selloff in technology stocks, with the Nasdaq 100 plunging 3.8%, its worst session since October 2022. Despite Trump’s executive order to establish a U.S. Bitcoin reserve, investor sentiment remained fragile as macroeconomic risks took center stage. 

Analysts noted that leveraged crypto-related ETFs were among the hardest hit, with some plunging more than 30% in a single day. While Bitcoin hovered around $79,300, traders were eyeing key support levels at $73,000 and $70,000, where stronger buying interest could emerge.

Finsum: While many think of crypto as hedge against market volatility, we need to remember that those hedges are a little effective on the currency side. 

Cryptocurrency is making its way into retirement accounts, but it's not the right fit for every investor. Crypto IRAs, also known as bitcoin IRAs, allow individuals to hold digital assets like bitcoin and ether within tax-advantaged accounts. 

While these accounts offer potential tax benefits—especially within a Roth IRA—they come with high fees, regulatory uncertainty, and extreme price volatility. Unlike traditional brokerage firms, crypto IRA providers operate under different standards, adding another layer of risk. 

Some investors may find bitcoin ETFs a lower-cost alternative to direct crypto ownership within an IRA. Regardless of your approach, diversification remains crucial to balancing the risks and rewards of crypto in a retirement portfolio.

Finsum: Crypto is a very good alternative to integrate into the portfolio, but most investors either over or under index so be careful when integrating into your portfolio.

Former President Donald Trump’s newly announced sovereign wealth fund has sparked speculation that it may include Bitcoin and other cryptocurrencies. Given his administration’s support for digital assets, experts believe this fund could serve as a vehicle to invest in crypto without bureaucratic hurdles. 

Some argue that incorporating Bitcoin and other digital assets could bolster the U.S. economy while positioning the country as a leader in the crypto sector. However, skeptics highlight the risks of volatility, regulatory uncertainty, and governance challenges tied to managing crypto within a government-backed investment fund. 

Other nations, including Norway, already have exposure to Bitcoin through their sovereign wealth funds, further fueling debate over the potential impact of the U.S. following suit. 

Finsum: If implemented, this move could accelerate institutional adoption of crypto while reinforcing America’s role in the evolving digital asset landscape.