Tag Archives: dips

Super bowl staples recalled over listeria outbreak in taco kits, bean dips, dairy products: CDC – Fox News

  1. Super bowl staples recalled over listeria outbreak in taco kits, bean dips, dairy products: CDC Fox News
  2. Cheese, Sour Cream and Yogurt are Being Recalled Nationwide—Here’s What You Need to Know Yahoo Life
  3. Listeria outbreak prompts recalls at H-E-B, other Texas grocery stores Houston Chronicle
  4. Fresh Creative Foods Announces Voluntary Recall of Dressings and Taco Kit Due to Risk of Listeria in Ingredient From Cheese Supplier: Rizo-Lopez Foods, Inc. FDA.gov
  5. Costco, Trader Joe’s pull some products with cheese in expanded recall for listeria risk USA TODAY

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BNB token dips 7%, and SEC pushes for emergency order to freeze Binance US assets: CNBC Crypto World – CNBC Television

  1. BNB token dips 7%, and SEC pushes for emergency order to freeze Binance US assets: CNBC Crypto World CNBC Television
  2. SEC Tweet On Coinbase Gets Pounced On By Mark Cuban — Financial Scams ‘Every Minute’ On Twitter, But Not Benzinga
  3. Mark Cuban Takes Aim At Jim Cramer’s Crypto Criticism Amidst SEC Actions CoinGape
  4. Bitcoin whipsaws after SEC sues Coinbase and Binance in two-day span: CNBC Crypto World CNBC Television
  5. Crypto exploits the gray area between securities and commodities regulation, says actor Ben McKenzie CNBC Television
  6. View Full Coverage on Google News

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UK inflation rate dips for second straight month to hit 10.5%

MichelleMitha | iStock / 360 | Getty Images

LONDON — U.K. inflation eased on the month, in line with economists’ expectations, as fuel, clothing and recreational costs dragged down the index.

Inflation softened to 10.5% in December, down from the 10.7% of November, the British Office for National Statistics said Wednesday. A panel of economists polled by Reuters had projected the British consumer price index would reach 10.5% in December, down from the 41-year-high of 11.1% achieved in October.

The core CPI, which excludes food, energy, alcohol and tobacco, was steady on the month at 6.3% in December, the ONS found.

The agency said the largest downward contribution came from the transport, clothing and recreation sectors, offsetting hikes in housing and household services, food and non-alcoholic beverages.

Inflation rates have spiked across 2022, fueled by surges in energy prices as Western sanctions bite into access to Russian oil and gas supplies. Policymakers have been combatting rising inflation with a spate of interest rate increases, with British premier Rishi Sunak on Jan. 4 pledging to halve U.K. headline inflation to “ease the cost of living and give people financial security.”

The Bank of England most recently lifted its main interest rate by 0.5 percentage points to 3.5% on Dec. 15. Financial markets anticipate a further rise to 4% when it meets to determine its next monetary policy steps on Feb. 2, according to Reuters.

The U.K. has been rocked by waves of industrial action since the end of last year, with teachers, train transport staff, civil service professionals and nurses set to strike this month and in early February. The government has responded with an anti-strike bill proposal intended to mandate “minimum service regulations.”

Worker pay remains dwarfed by the pace of inflation, with average U.K. wages recording a 6.4% year-on-year increase over the September-November 2022 period, the ONS said on Jan. 17.

“While there is some indication that inflation may have reached its peak, prices will remain high in the coming months,” warned Helen Dickinson, chief executive of the British Retail Consortium.

“Retailers are determined to support their customers throughout this cost-of-living crisis. They are keeping the price of many essentials affordable, expanding their value ranges, raising pay for their own staff, and offering discounts for vulnerable groups.”

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Home sales could plunge in 2023. These cities could see the biggest dips.

Home sellers should brace themselves for a tough year ahead, with one real estate group forecasting that property sales could tumble in 2023 as more buyers are sidelined by rising mortgage rates and out-of-reach home prices. 

The number of homes sold will likely plunge 14.1% to 4.53 million homes, representing the lowest number of property transactions since 2012, when the U.S. was still recovering from the housing crash and Great Recession, according to according to Realtor.com’s 2023 Housing Forecast. 

The pandemic triggered a massive boom in real estate sales, bolstered by a combination of record-low mortgage rates and work-from-home-orders from many employers. Since early 2020, home prices have surged almost 40%, while mortgage rates have more than doubled since year-start, a double-whammy that has priced many buyers out of the market. 

Sellers may feel the brunt of that impact next year, according to the new Realtor.com forecast. 

“High home prices and mortgage rates [will] limit the pool of eligible home buyers” in 2023, it said.

Home sales are expected to dip the most in California and Florida. The biggest decline in sales volume will be in these cities, Realtor.com forecasted:

  • Ventura, California: A decline of -29.1%
  • San Jose, California: -28.8%
  • Bradenton, Florida: -28.7%
  • San Diego, California: -27.3%
  • Palm Bay, Florida: -18.3%
  • Los Angeles, California: -15.8%
  • Tampa, Florida: -15.6%
  • Tucson, Arizona: -14.7%
  • Fresno, California: -13.7%
  • San Francisco: -13.3%

Possible bright side for sellers

If there’s a bright side for sellers, it’s that the average sales price in the nation’s top 100 markets is likely to increase next year by an average 5.4%, according to Realtor.com’s 2023 Housing Forecast. 

Not everyone’s outlook on home prices in 2023 is as sunny. Some economists are predicting that real estate values could plunge by as much as 20% next year due to the surge in mortgage rates and economic uncertainty. 

Even though Realtor.com is forecasting higher housing prices next year, the pace of escalation represents a slower rate than the blistering increases of the past two years. Prices will be elevated during the first half of 2023, but are likely to fall or stay flat during the second half of next year, Realtor.com’s Chief Economist Danielle Hale told CBS MoneyWatch.

“We expect, for the year as a whole, 2023 is going to be higher,” Hale said. “Shoppers who want to buy might have to wait a little bit.”

The elevated prices will be more dramatic in some cities than others, Realtor.com predicted. Metro areas that could see the sharpest increases are:

  • Worcester, Massachusetts: 10.6%
  • Portland, Maine: 10.3%
  • Grand Rapids, Michigan: 10%
  • Providence, Rhode Island: 9.8%
  • Spokane, Washington: 9.6%
  • Springfield, Massachusetts: 8.9%
  • Boise, Idaho: 8.7%
  • Chattanooga, Tennessee: 8.2%
  • Indianapolis, Indiana: 7.8%
  • Milwaukee, Wisconsin: 7.7%

Those higher prices could be discouraging for buyers who have already faced sharply higher real estate valuations in 2022. Some cities in particular — like Boise, Idaho; and Austin, Texas — saw double-digit percent increases this year. 

The rising cost of homeownership deterred many aspiring buyers, who have opted instead to continue renting. In a recent survey from LendingTree, nearly half of respondents said they were postponing major decisions, either renting for longer period of time or putting off major home renovations.

Home prices have fallen in some areas during the tail end of 2022, but mortgage rates have continued to climb. The average interest rate for a 30-year fixed mortgage was about 6.6% this week, more than double what the rate was at the start of the year. 

Realtor.com expects mortgage rates to climb even further at the beginning of next year as the Federal Reserve continues to raise its benchmark interest rate. Mortgage rates could reach as high as 7.4% in the first half of 2023 before settling down to around 7.1% toward the second half of the year, the company said.

The combination of higher home prices and mortgage rates in 2023 could push the typical monthly mortgage payment in 2023 to $2,430, or 28% higher than this year, Realtor.com predicted.


High mortgage rates drive down home sales

02:09

Mortgage rates rose so quickly this year that it was at times difficult for buyers to figure out how much home they could afford, Hale said. In 2023, interest rates probably won’t fluctuate as much, she said. 

“Having more stability will make it easier for buyers when setting the right budget,” she said. “And that should help encourage people to get back into the housing market.”

With buyers sitting on the sidelines, the number of homes available for sale is expected to climb nearly 23% next year. The upside for buyers is a greater variety of choices, while sellers will be facing more competition. 

To be sure, all of these predictions could change depending how the Fed handles its fight against inflation next month and early next year, Hale said. The Fed has raised its benchmark rate six times this year, and with each hike mortgage rates have climbed as well. Hale and other economists expect the Fed to raise its rate again next month, but perhaps by not as much as previous increases. 

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S&P 500 ends down as Apple dips and traders eye Powell speech

  • Investors look to Powell speech for interest rate clues
  • U.S. consumer confidence slips in November
  • S&P 500 -0.16%, Nasdaq -0.59%, Dow +0.01%

Nov 29 (Reuters) – The S&P 500 ended down on Tuesday, with losses in Apple and Amazon ahead of an upcoming speech by U.S. Federal Reserve Chair Jerome Powell that could provide hints about magnitude of future interest rate hikes.

Investors also focused on recent protests against COVID-19 curbs in China, including at the world’s biggest iPhone factory.

Apple’s (AAPL.O) stock dropped 2.1%, down for a fourth straight session.

Powell is due to speak at a Brookings Institution event on Wednesday about the outlook for the U.S. economy and the labor market. Investors will be looking for clues about when the Fed will slow the pace of its aggressive interest rate hikes.

“No one is willing to buy ahead of tomorrow with Powell speaking. Everyone is nervous about what he is going to say,” said Ron Saba, senior portfolio manager at Horizon Investments in Charlotte.

Shares of Amazon (AMZN.O), Nvidia (NVDA.O) and Tesla (TSLA.O) each lost more than 1%.

The benchmark S&P 500 index (.SPX) is headed for its second straight month of gains in November amid bets that recent inflation readings showing a slight cooling in prices will lead the Fed to scale back the scale of its interest rate hikes.

The Fed has delivered four straight 75 basis point rate hikes, and it is expected to shift down the pace to a 50-bps move in December. FEDWATCH

A survey on Tuesday showed U.S. consumer confidence eased further in November amid persistent worries about the rising cost of living.

A specialist trader works with his son during a traditional bring-your-kids-to-work day on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., November 25, 2022. REUTERS/Brendan McDermid

Mainland China’s recent wave of civil disobedience comes as the number of COVID cases hit record daily highs and large parts of several cities face new lockdowns, further threatening the world’s second largest economy.

The S&P 500 energy sector index (.SPNY) rallied 1.3%, while gains in oil prices on expectations of a loosening of China’s strict COVID controls were later offset by concerns that OPEC+ would keep its output unchanged at its upcoming meeting.

The S&P 500 declined 0.16% to end the session at 3,957.60 points.

The Nasdaq declined 0.59% to 10,983.78 points, while Dow Jones Industrial Average rose 0.01% to 33,852.13 points.

Despite the S&P 500’s decline, advancing issues outnumbered falling ones (.AD.SPX) by a 1.3-to-one ratio.

The S&P 500 posted three new highs and two new lows; the Nasdaq recorded 68 new highs and 183 new lows.

U.S.-listed shares of Chinese companies Alibaba Group Holding Ltd , Pinduoduo Inc (PDD.O) and JD.com Inc jumped more than 5% after China broadened equity financing channels for property developers.

Shares of Chinese internet firm Bilibili Inc soared 22% after posting upbeat quarterly results.

Volume on U.S. exchanges was relatively light, with 9.6 billion shares traded, compared with an average of 11.2 billion shares over the previous 20 sessions.

Reporting by Shreyashi Sanyal and Ankika Biswas in Bengaluru and by Noel Randewich in Oakland, Calif.; Editing by Marguerita Choy and Shounak Dasgupta

Our Standards: The Thomson Reuters Trust Principles.

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Bitcoin dips below $20,000 | Reuters

A neon logo of cryptocurrency Bitcoin is seen at the Crypstation cafe, in downtown Buenos Aires, Argentina May 5, 2022. Picture taken May 5, 2022. REUTERS/Agustin Marcarian/File Photo

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Aug 27 (Reuters) – Bitcoin dipped below $20,000 on Saturday, continuing a drop that has taken it down nearly 60% from its year high.

Bitcoin , the world’s biggest and best-known cryptocurrency, was last down 1.5% at $19,946 on Saturday, down $298 from its previous close.

It is down 58.7% from the year’s high of $48,234 hit on March 28.

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Ether , the coin linked to the ethereum blockchain network, meanwhile dipped 2.76 % to $1,467.2, losing $41.60 from its previous close.

Bitcoin’s fall comes after a weak day on Friday for the currency, which fell as Wall Street slumped with all three benchmarks ending more than 3% lower.

The weakness in risk assets came after Federal Reserve Chief Jerome Powell cautioned against expecting a swift end to its rate tightening. The Fed’s actions on interest rates has caused some investors to forecast more pain for equities. read more

“Bitcoin broke below 20,000 as investors expect a weekend full of pessimism from Jackson Hole to drag down sentiment,” Edward Moya, senior market analyst at OANDA, said on Saturday.

“European and Asian central bankers will likely be much more pessimistic than Fed Chair Powell and that has many traders bracing for a weak open on Sunday night,” he added.

Bitcoin was last below $20,000 in mid-July.

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Reporting by Akriti Sharma in Bengaluru and Megan Davies in New York; Editing by Bill Berkrot and Chizu Nomiyama

Our Standards: The Thomson Reuters Trust Principles.

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Trump fundraising dips in first six months of 2022, trails DeSantis

Comment

Former president Donald Trump’s fundraising slowed in the first half of 2022, falling below $50 million in a six-month period for the first time since he left the White House 18 months ago.

A fundraising committee that directs money to his various political groups raised $17 million in the second quarter of this year, according to a new federal filing. That brings the committee’s haul to at least $36 million so far this year.

The tally does not include new direct contributions to Trump’s Save America PAC, which won’t be disclosed until late this month and have in recent months totaled up to $20,000. The PAC received $23,409 this quarter through WinRed, which processes online transactions for Republican candidates and committees.

The former president’s yields are falling as his time in the White House recedes further into the past. In the same six-month period last year, Trump collected more than $56 million in online donations, and then raised about $51 million from July through December of 2021.

The latest filing puts Trump’s haul behind that of Florida Gov. Ron DeSantis, a possible contender for the 2024 Republican presidential nomination. DeSantis, who delighted conservatives nationally with his hands-off approach to the coronavirus pandemic, raised about $45 million in the first six months of the year, according to state filings.

Small-dollar online donations have dipped across the GOP, said people familiar with the matter who spoke on the condition of anonymity to discuss internal party data, blaming the trend on donors having less disposable income because of inflation and on their fatigue with the relentless fundraising appeals. Numerous Democratic incumbents in close Senate races reported record hauls in the second quarter, including Georgia Sen. Raphael G. Warnock, who brought in $17 million compared to GOP challenger Herschel Walker’s $3.6 million, and Nevada Sen. Catherine Cortez Masto, who raised $7.5 million compared to GOP challenger Adam Laxalt’s $2.8 million.

The new figures offer fresh evidence of the financial muscle Trump could put behind a third run for the presidency, as he sounds out allies about a possible announcement. That dynamic could influence the timing of any possible campaign announcement, as Republicans weigh whether he would clear the field and how his designs on 2024 might reshape this year’s midterms.

Trump and DeSantis are the dominant fundraisers in their party, with Trump maintaining a reservoir of support from small-dollar donors and DeSantis having won the backing of some of the GOP’s most generous megadonors, foremost among them hedge fund manager Ken Griffin, who recently said he would move his company, Citadel, from Chicago to Miami. Next week, DeSantis is holding a trio of fundraisers in Utah. He is asking for $25,000 from couples attending a reception in Salt Lake City hosted by, among others, Utah Attorney General Sean Reyes and property developer Scott C. Keller, according to invitations obtained by The Washington Post.

The comparison is imperfect. DeSantis is raising money for a committee that can accept unlimited contributions, while donors can only give $10,000 per year to Trump’s joint fundraising vehicle. DeSantis also has an ongoing race for which he’s raising funds — he’s up for reelection this fall. So, too, is Texas Gov. Greg Abbott (R), another possible contender for his party’s 2024 presidential nomination. He raised $29 million in the first six months of the year, his campaign said.

But Trump is hardly choosing to “hang up his hat and sail into the sunset,” as the world’s richest man, Elon Musk, this week advised him to do. Instead, he’s traveling the country stumping for endorsed candidates, repeating his debunked claims of election fraud and hinting at a third bid for president. He recently told supporters in Las Vegas that he “ran twice and won twice, and may have to do it a third time.”

“He is not only raising money at an unparalleled pace, but he is investing in America First candidates and continuing to grow the MAGA movement into 2022 and beyond,” said Taylor Budowich, a Trump spokesman, in response to the new filings on Friday.

The latest fundraising numbers show that his online solicitations continue to resonate with his base, even as House investigators probing the Jan. 6 attack on the Capitol accuse him of deceiving his supporters with promises of a nonexistent fund devoted to contesting election fraud.

“Having campaigned and fundraised for President Trump since 2015, there has been no stronger support and interest for him than there is today,” said Ed McMullen, Trump’s ambassador to Switzerland who also served as his South Carolina state director during the 2016 presidential campaign. “President Trump’s popularity and fundraising continues to grow and thrive at every level.”

Trump’s name and image dominate fundraising appeals for other GOP candidates and party committees, a sign of his enduring pull with the party’s base. Trump has recently moved to rein in other entities’ attempts to fundraise off his coattails, and the tension would only intensify if and when Trump officially announces his candidacy.

“The entire fundraising apparatus in the Republican Party revolves around President Trump,” said Caroline Wren, a Trump-aligned GOP fundraiser who helped organize the rally on Jan. 6, 2021. “Candidates and party committees rely on President Trump’s name for their low-dollar fundraising efforts, and when it comes to high-dollar fundraising, President Trump has selflessly spent the past two years raising millions of dollars for America First candidates and organizations, including headlining fundraising events for every major Republican Committee.”

Trump had been largely stockpiling his PAC contributions, but a person familiar with the group who spoke on the condition of anonymity to describe its financial details said its spending jumped in June. The increase stemmed from legal bills arising from the House committee investigating the Jan. 6, 2021, insurrection, more transfers to support other candidates and committees, and higher costs to raise money online, the person said. The Save America PAC finished June with $112 million on hand, the person said, which would be a net gain of about $11 million from the prior month.

The Save America PAC’s June report to the FEC is due on July 20. Earlier filings show the group dispersed about $6 million in recent months to boost Trump’s preferred candidates in Pennsylvania’s Senate primary and Georgia’s gubernatorial primary. He prevailed in Pennsylvania, successfully elevating celebrity doctor Mehmet Oz above a crowded field, but failed to topple incumbent Gov. Brian Kemp in Georgia.

The committee directed $75,000 in May to the law firm of an attorney representing Cleta Mitchell, a pro-Trump lawyer who advised him on efforts to overturn the results of the election. The attorney, John P. Rowley, did not respond to a request for comment.

Trump’s PAC also continued to spend money at his properties, directing about $30,000 in recent months to the Trump Hotel Collection.

There are no explicit restrictions on the personal use of funds raised by leadership PACs. Such committees, in addition to boosting like-minded candidates, can be used to pay advisers, cover travel expenses and defray legal bills, among other costs.

One limitation, said experts in campaign finance law, is that people behind such PACs can’t use the money to further their own future campaigns. Travel and other expenses advancing a candidate’s political activities are subject to contribution limits once the candidate has declared for a certain office, these experts said.

Even transferring those funds to a super PAC making independent expenditures boosting the candidate would likely provoke complaints if the money “established the super PAC or is the majority of the money financing the super PAC,” said Charles Spies, a Republican election lawyer.

Trump’s committee reported its dividends as its fundraising practices are under scrutiny by the House select committee investigating the Jan. 6 attack on the Capitol. Amanda Wick, a committee investigator, highlighted in a hearing last month how Trump and his allies raised $250 million in the weeks after the election by barraging his supporters with fundraising emails promoting an “Official Election Defense Fund,” even though no such fund existed.

“Not only was there the big lie,” said Rep. Zoe Lofgren (D-Calif.). “There was the big rip-off.”

A Trump spokesman did not respond to a request for comment about those allegations.

Renato Mariotti, a former federal prosecutor focused on securities and commodities fraud, said the Justice Department is unlikely to bring charges related to the fundraising practices highlighted by the committee. Prosecutors would face a host of challenges, he said, including proving that authors of the solicitations had an intent to defraud and countering a possible defense that donors would have chipped in regardless of the substance of the appeal.

Such appeals continue. Four emails sent in May from Trump’s PAC, for example, asked donors to contribute to a “Protect our Elections Fund.”

One subject line: “Future Election Fraud Alert.”

It implored supporters: Please contribute at least $45 or more IMMEDIATELY to the Protect our Elections Fund.”

Josh Dawsey, Dylan Freedman, Anu Narayanswamy and Chris Zubak-Skees contributed to this report.

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Bitcoing (BTC) Dips Below Key Level As Diamond Hands Wobble

Bitcoin traded below a key psychological level on Monday evening, while other major coins also slid, as the global cryptocurrency market declined 4.05% to $888.7 billion at press time.

Price Performance Of Major Coins
Coin 24-hour 7-day Price
Bitcoin BTC/USD -3.9% -1.3% $19,981.91
Ethereum ETH/USD -6% -4.8% $1,097.13
Dogecoin DOGE/USD -7.7% -11.2% $0.06
Top 24-Hour Gainers (Data via CoinMarketCap)
Cryptocurrency 24-Hour % Change (+/-) Price
Arweave (AR) +3.9% $12.02
Loopring (LRC) +1.35% $0.11
Dai (DAI) +0% ​​$1

See Also: How To Get Free NFTs

Why It Matters: Bitcoin traded below the $20,000 mark, while Ethereum was close to slipping below $1,000 at press time as sentiment around risk assets deteriorated yet once again.

Cryptocurrencies tracked weaker equities on Monday, as major U.S. indices S&P 500 and Nasdaq ended 1.15% and 2.26% lower.

Futures for the S&P 500 and Nasdaq were, however, up 0.04% and 0.01%, respectively, ahead of earnings announcements from major companies.

“Another bear-market rally has come and gone and we now head into earnings season and another week of major economic reports fearful of what may lie ahead. The U.S. inflation data midweek is a standout, as investors cross their fingers for signs of decelerating prices,” said OANDA senior market analyst Craig Erlam, in a note seen by Benzinga. 

Erlam’s colleague at OANDA, Edward Moya said that the latest bearish cycle for Bitcoin is close to testing the “historically known 80% drops that we would see in past crypto winters.”

“The $14,000 level seems like it could provide significant support if Bitcoin breaks later this week. This week’s inflation report could be the trigger for one last major plunge for cryptos.”

The U.S. dollar continued to strengthen as expectations heightened for yet another interest rate hike. At press time, the dollar index — a measure of the greenback’s strength against six of its peers — rose to 108.19.

Cryptocurrency trader Justin Bennett warned on Twitter that people should stop trying to call dollar index tops, saying the signs point to 120 for the index. Bennett has commented on the inverse relationship between cryptocurrencies and the dollar in the past.

The chartist Ali Martinez said that Bitcoin had dipped below its 100-hour moving average down to the $19,900 levels and if these fail to hold, losses could extend towards the $19,300 or even $18,630 levels.

On-chain analysis firm Glassnode said in a note that the long-term holder spent output profit ratio (LTH-SOPR), which indicates the profit ratio captured by long-term holders of Bitcoin, is showing that so-called diamond hands are in pain. 

An LTH-SOPR value of 2.0 means long-term holders are spending coins at a price that is 2x their cost basis, while a value that is less than 1.0 means investors realize losses or spend coins at a price below their cost basis.

Bitcoin LTH-SOPR (30-day Moving Average) — Courtesy Glassnode

“LTH-SOPR is currently trading at 0.67, indicating the average LTH spending their coins is locking in a 33% loss,” said Glassnode.

While extreme financial stress and “fingerprint of a widespread capitulation” can be observed, Glassnode said, “there may still be a combination of both time pain (duration), and perhaps further downside risk to fully test investor resolve, and enable the market to establish a resilient bottom.”

Read Next: Ethereum Fees Drop Below $0.90 For The First Time In 2 Years



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Bitcoin Price Dips Below $21,000 as Crypto Firms Announce Layoffs

The price of bitcoin continued to fall Tuesday as the crypto industry struggles with fallout from the extended selloff.

Bitcoin traded as low as $20,834 earlier on Tuesday, according to CoinDesk. The original cryptocurrency hasn’t traded under $20,000 since December 2020.

For the day, bitcoin fell 5.4% to $21,991.89, its lowest close since Dec. 16, 2020, according to Dow Jones Market Data. It is down about 68% from its all-time high in November last year at $67,802.

Coinbase Global Inc.,

one of the largest and most valuable crypto exchanges, said Tuesday that it was laying off 18% of its staff, a move that comes roughly a month after the company imposed a hiring freeze. Two other prominent crypto companies, Crypto.com and BlockFi, have also announced layoffs.

Coinbase shares closed down 0.8% at $51.58. The stock has fallen about 80% year to date.

WSJ’s Dion Rabouin explains why Wall Street is now betting big on crypto and what that means for the new asset class and its future. Photo composite: Elizabeth Smelov

Cryptocurrencies have been sinking along with other higher-risk assets as the Federal Reserve steadily reverses the aggressive monetary policies it adopted earlier in the coronavirus pandemic. Lately, its efforts to raise interest rates to combat surging inflation have further dented investors’ risk appetite.

The market value of the entire crypto sector has fallen to less than $1 trillion from about $3 trillion in November, according to CoinMarketCap. Those falls reflect a significant drop in trading activity and momentum, and until that turns around, industry players like Coinbase are likely to remain under pressure, said KBW Managing Director

Kyle Voigt.

Coinbase Chief Executive

Brian Armstrong

said the company had grown too quickly, expanding from about 1,250 employees at the start of last year to around 5,000 currently.

“We saw the opportunities but we needed to massively scale our team to be positioned to compete in a broad array of bets,” he wrote in a note to staff. “While we tried our best to get this just right, in this case it is now clear to me that we over-hired.”

The price of ether, the in-house currency of the Ethereum network, fell 4.5% to $1,187.30, its lowest close since Jan. 21, 2021. Over the weekend, the price fell below $1,360, the early 2019 high from the previous cycle.

Other cryptocurrencies were mixed. Cardano fell 1.9%, but Solana was up 1.3% and Stellar was up 0.5%.

Write to Paul Vigna at paul.vigna@wsj.com

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Bitcoin dips 3.6% from weekly highs — What are the key BTC price levels to watch?

Bitcoin (BTC) threatened a significant retracement overnight into March 23 as weekly highs saw their first test.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

BTC misses out on “very bullish” daily close

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD dipping from a peak of $43,337 to lows of $41,779 on Bitstamp before recovering.

At the time of writing, the pair traded at around $42,300 — still $1,000 off the highs.

Enthusiasm had been clearly in evidence on Tuesday thanks to increasing publicity focused on Blockchain protocol Terra’s apparent $3 billion BTC buy-in.

According to co-founder Do Kwon, the majority of the funds, which were to be used to back Terra’s new TerraUSD (UST) stablecoin, had not yet been purchased, leaving room for more potential BTC price squeezes.

Nonetheless, the mood cooled on markets overnight, Bitcoin missing what would have been a “very bullish” daily close by around $200.

Analyst Matthew Hyland was confident that the “tide was turning” for Bitcoin, however, among other things pointing to an ongoing breakout attempt for Bitcoin’s daily relative strength index (RSI).

Its downtrend, he noted, had been in place since even before November’s all-time high.

BTC/USD with RSI annotated chart. Source: Matthew Hyland/ Twitter

Trader Credible Crypto meanwhile highlighted a similar level at $42,500 as important to flip.

“42.5k has been broken, now want to see this level established as support if this is a true breakout,” he wrote in a Twitter update on the day.

“Meaning, the move up should hold and want to see some consolidation above this level for continuation. Let’s see what we get over the next day or two.”

European Central Bank sees new balance sheet record

On macro, news that Thailand had decided to ban crypto for payments provided a sour mood from Asia, while in Europe, the European Central Bank’s (ECB) balance sheet rose to record highs.

Related: $43K BTC flipping support? Not anytime soon, according to derivative metrics

Now at more than €8.7 trillion ($9.59 trillion), markets commentator Holger Zschaepitz began to query whether “the sky’s the limit” for ECB asset purchases.

“Only the sky is the limit? ECB Balance Sheet has hit fresh ATH >€8.7tn. Total assets rose by another €13bn as ECB keeps buying bonds despite record-high,” he summarized Wednesday alongside a chart from Bloomberg Terminal.

“Eurozone inflation. Balance Sheet now equal to 82% of Eurozone GDP vs. Fed’s 37%, and BoJ’s 136%.”

ECB balance sheet chart. Source: Holger Zschaepitz/ Twitter

As Cointelegraph reported, the United States Federal Reserve plans to halt its asset purchases and begin reducing its balance sheet going forward.



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