Bitcoin Business Latest
ByAuthor J.D. SmithPosted on
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Crypto is ‘poorest hedge’ for drawdowns in equities, JPMorgan analysts say

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Analysts at American investment bank JPMorgan Chase have delivered another skeptical statement on Bitcoin (BTC), arguing that its current price is much higher than its fair value.

In a regular memo for investors, JPMorgan argued that cryptocurrencies like Bitcoin are an “economic side show” and the poorest hedge against a decline in equity prices, Reuters reports Friday.

The analysts said that the mainstream adoption of Bitcoin increases its correlation with cyclical assets, which makes it a less attractive asset for portfolio diversification:

“Crypto assets continue to rank as the poorest hedge for major drawdowns in equities, with questionable diversification benefits at prices so far above production costs, while correlations with cyclical assets are rising as crypto ownership is mainstreamed.”

In January 2021, JPMorgan strategists John Normand and Federico Manicardi argued that Bitcoin has been becoming a cyclical asset, opposed to a hedge against market stress.

A cyclical asset refers to stocks that follow a trend depending on a certain business cycle. For example, companies in discretionary industries like restaurants, hospitality, airlines, furniture, automotive and others. As previously reported by Cointelegraph, the question of whether Bitcoin is a cyclical or non-cyclical asset is still debatable, with many industry players strongly believing that the cryptocurrency is a great hedge against a market crisis.

The latest comments from JPMorgan come shortly after the company’s co-president Daniel Pinto said that the bank would eventually have to get involved in Bitcoin following growing client demand. In October 2020, when Bitcoin was trading around $13,000, JPMorgan predicted that Bitcoin’s price would double or triple in the long term.

At the time of writing, Bitcoin is trading at $52,764, up more than 70% over the past 30 days. After breaking the $50,000 price level on Feb. 16, Bitcoin briefly hit a new all-time high of above $53,000 earlier today, according to data from crypto monitoring website CoinGecko.

Source: CoinGecko
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Bitcoin Opinion Policy & Regulation Tech
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Exchange demands users return Bitcoin bought for $6K during tech glitch

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One of Southeast Asia’s biggest crypto exchanges is blaming a technical glitch for the price of Bitcoin dropping down to 300,000 PHP, roughly $6,100, on Feb. 16. 

An unknown number of customers of the Philippine Digital Assets Exchange, or PDAX, managed to buy thousands of BTC from the exchange at a massive discount, making them local currency billionaires on paper — at least for a few hours.

A number of PDAX customers withdrew their purchased Bitcoin, up to the exchange’s limit on individual accounts of one BTC per 24 hours. PDAX is reportedly demanding these users refund BTC obtained during the crash under the threat of potential legal action.

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According to a new report from crypto market data aggregator, Glassnode, Bitcoin whales offloaded massive amounts of BTC during February.

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Whales and humpbacks’ buying spree peaked in January as they snapped up 80,000 BTC, worth $3.84 billion at today’s prices.

But since February, whales and humpbacks appear to have taken heavy profits, offloading 140,000 BTC — equal to $6.72 billion since the start of the month.

The data shows an inverse-correlation between the trading activities of whales to smaller, but still very wealthy investors. Glassnode noted that “dolphins” and “sharks” — wallets that hold between 100 BTC and 1,000 BTC — shed 95,000 BTC worth $4.56…

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DeFi user pays $36K for one Uniswap transaction, as EIP-1559 draws closer

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Ethereum fees are at record level but even so, one Uniswap user paid well over the going rate with a gas fee of $36,000 for a single transaction.

Crypto twitter has been flooded with complaints about the unsustainable fees for using the Ethereum network but the rates only exacerbated one DeFi user’s fat fingered mistake.

The exorbitant transaction was tweeted by co-founder and CTO of Groundhog Network, Andrew Redden, who confirmed it was Uniswap related.

The ludicrous fee turned out to be a typing error as the user manually entered two prices in gwei together. The fee of 500,801 gwei should have been one (500 gwei) or the other (801 gwei) but not both.

It came to a whopping 24.94 ETH, or approximately $36,000 at the time it was made.

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Indian banks put crypto traders’ accounts under the microscope

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