Chart of the week: the bitcoin bubble is still hissing air
Last week bitcoin dropped by more than 20% in a few days to around $6,200 before recovering slightly. Other cryptocurrencies such as ethereum and XRP have lost their footing too.
Last week bitcoin dropped by more than 20% in a few days to around$6,200 before recovering slightly. Other cryptocurrencies such as ethereum and XRP have lost their footing too. Negative publicity appears partly responsible for the latest slide: there have been reports of a large sale of bitcoins relating to possible drug sales on the dark web.
Meanwhile, a report claiming that Goldman Sachs has abandoned plans to open a bitcoin trading desk won't have helped. The US Securities and Exchange Commission has rejected proposals for bitcoin ETFs owing to their lack of transparency. Finally, a strong dollar has reminded investors increasingly disenchanted withcryptocurrencies' volatility of the benefits of a robust reserve currency.
Viewpoint
"A shrewd observer of London's after-work drinking culture once [said]: There is no number between two and six.'After a third drink, another will seem like a good idea and another, and another[This applies] to Italy's bond market. As long as yields are two-point-something or lower, they are sustainable As yields rise above 3%, they may become unmoored The stability of public finances is in question. Yields might plausibly spike to 6% or more At least you are getting a higher yield in return for the risks. You are paid for your discomfort. That is not true of French bonds, which trade at only a small premium to Germany's. Think of the eurozone bond market as an after-work drinks party. Germany dislikes buying drinks for others, and so has gone home. Italy is on its third trip to thebar. France, which is nursing its first drink, insists that it is leaving soon. But if a fight breaks out, it will get drawn in."
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Buttonwood, The Economist
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
-
How to invest in nuclear power
We need nuclear power to go green, says Dominic Frisby. But there is a better option than huge power stations
By Dominic Frisby Published
-
Chase slashes its easy-access savings rate – is it time to switch?
The Chase easy-access savings account has proved popular with savers thanks to its competitive rate and bonus deals. But, as the rate has dropped, has it lost its charm?
By Katie Williams Published
-
What would the greatest mathematician of the Middle Ages say about gold today?
Sponsored Italian mathematician Fibonacci is most famous for a curious sequence of numbers. Continuing his series on technical analysis, Dominic Frisby explains what these numbers are, and what they can tell us about gold’s next move.
By Dominic Frisby Published
-
How moving averages can reveal trades worth betting on – and ones to avoid
Sponsored Dominic Frisby looks in more depth at how moving averages can help you catch turning points in markets and help you decide which trades are worth pursuing.
By Dominic Frisby Published
-
This chart pattern could be extraordinarily bullish for gold
Charts The mother of all patterns is developing in the gold charts, says Dominic Frisby. And if everything plays out well, gold could hit a price that investors could retire on.
By Dominic Frisby Published
-
Believe it or not, this market is a “buy”
Charts With the world in the state it’s in and the market so volatile, buying stocks right now might go against all your instincts. But that’s just what you should be doing, says Dominic Frisby. Here, he explains why.
By Dominic Frisby Published
-
Chart of the week: avocados and bitcoin are in sync
Charts An amusing new spurious correlation has been spotted between the price of bitcoin and Mexican Hass avocados. In reality, of course, they have nothing to do with each other beyond “superficial price action”.
By moneyweek Published
-
Chart of the week: Kuwait's stockmarket is ready for take-off
Charts Kuwait's stockmarket is due to be promoted from “frontier” status to an emerging market by index provider MSCI next June. That should entice almost $10bn of global investors’ cash into the country.
By moneyweek Published
-
Chart of the week: US stocks outrun profits
Charts The US stockmarket has become totally detached from underlying profits of its constituent companies over the past three years.
By moneyweek Published
-
Chart of the week: Dr Copper diagnoses an ailing economy
Charts The price of copper has slipped by a fifth this year and is now at a near-two-year low of around $5,600 a tonne.
By moneyweek Published