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| February 17, 2019

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Trump dines with Federal Reserve chair Powell, a frequent target

February 5, 2019 |

President Trump had a special guest for dinner Monday night: Federal Reserve Chairman Jerome Powell, a frequent target of the president’s criticism. Trump has repeatedly called the Fed “crazy” in recent months and accused the central bank of hurting the economy.

Trump and Powell dined on steak…


L.A. Times – Business

St. Louis Federal Reserve Predicts ‘Flood’ of Altcoins Will Drive Down BTC Prices

January 15, 2019 |

The St. Louis branch of the Federal Reserve bank has published a report seeking to examine the long-term prospects of BTC as an investment. The paper is highly critical of bullish outlooks for bitcoin, asserting that a “flood” of altcoins will deflate the price of all cryptocurrencies relative to fiat currencies over time.

Also Read: Marshall Islands Updates 2019 Roadmap for Sovereign Cryptocurrency

Economic Research Arm of St. Louis Federal Reserve Assesses Bitcoin’s Prospects

St. Louis Federal Reserve Predicts 'Flood' of Altcoins Will Drive Down BTC PricesThe St. Louis Federal Reserve has published a paper that seeks to assess the prospects of bitcoin as a long-term investment.

According to the paper, the bullish argument for bitcoin core is that it will appreciate “indefinitely” due to its “capped supply and an ever-growing demand.” The bearish case for bitcoin, the St. Louis fed asserts, is that “Bitcoin’s price will fall to zero, as it’s an intrinsically worthless asset.”

Ultimately, the paper predicts that the future price action for bitcoin is likely to remain bounded between the aforementioned “extremes.”

St. Louis Fed Argues ‘Ever-Expanding’ Altcoin Supply Will Diminish Bitcoin Prices

The St. Louis Federal Reserve describes the bitcoin bull scenario as “too optimistic,” emphasizing the expectation that the “ever-expanding supply of alternative cryptocurrencies” will drive down the price of BTC relative to fiat currencies.

The paper asserts that the bullish outlook for bitcoin “assumes that the nominal exchange rate between bitcoin vis-a-vis other cryptocurrencies will adjust in proportion to their relative supplies,” adding that “Bitcoin is expected to appreciate relative to its competitors or, equivalently, its market capitalization share will stay constant over time.”

St. Louis Federal Reserve Claims Bitcoin ‘Has No Fundamental Value’

St. Louis Federal Reserve Predicts 'Flood' of Altcoins Will Drive Down BTC PricesThe bearish outlook is predicated on the assertion that “Bitcoin has no fundamental value” and that the market will “recognize this fact” sooner or later.

While appearing to make concessions for the possibility that bitcoin will not crash down to zero, the paper notes that “one can accept that bitcoin trades above its fundamental value without claiming that its fundamental value is zero,” adding that “many securities trade above what might be considered their fundamental value.”

In concluding, the paper asserts that the price dynamic of an unbacked asset will likely produce significant volatility and is “inherently unforecastable.” While the St. Louis Federal Reserves adds that the price of bitcoin is “not likely” to fall to zero, the paper repeatedly emphasizes the authors’ expectation that the proliferation of altcoins “is likely to place significant downward pressure on the purchasing power of all cryptocurrencies, including bitcoin.”

What is your response to the St. Louis Federal Reserve’s predictions regarding the long-term outlook for bitcoin? Share your thoughts in the comments section below!


Images courtesy of Shutterstock, Wikipedia


At Bitcoin.com there’s a bunch of free helpful services. For instance, have you seen our Tools page? You can even lookup the exchange rate for a transaction in the past. Or calculate the value of your current holdings. Or create a paper wallet. And much more.

The post St. Louis Federal Reserve Predicts ‘Flood’ of Altcoins Will Drive Down BTC Prices appeared first on Bitcoin News.

Bitcoin News

Federal Reserve Chairman Jerome Powell has much to lose and little to gain in sit-down with Trump

December 29, 2018 |

Of all the holiday gatherings Jerome Powell gets invited to, a sit-down in the Oval Office might be one of the last he’d want to attend.

Just days after President Trump blamed the Federal Reserve chairman for the stock market’s December swoon and discussed with aides his desire to fire him, White…


L.A. Times – Business

Mnuchin’s attempt to calm markets backfires as Trump takes another shot at the Federal Reserve

December 25, 2018 |

An attempt by Treasury Secretary Steven T. Mnuchin to calm plunging financial markets backfired Monday, further rattling investors with new fears about whether major U.S. banks have enough cash on top of worries about interest rates, political instability in Washington and a slowing global economy.


L.A. Times – Business

‘Almost all’ Federal Reserve officials see continued gradual rate hikes, meeting minutes show

November 29, 2018 |

If the Federal Reserve chief this week signaled an approaching end to the central bank’s recent spate of interest rate hikes, as many investors believed, he’s got a lot of convincing to do among his fellow monetary policymakers.

“Almost all” the participants in the Fed’s most recent meeting, on…


L.A. Times – Business

Federal Reserve will keep raising interest rates when and only when it’s right, Powell says

November 28, 2018 |

Federal Reserve Chairman Jerome H. Powell is under pressure from President Trump and investors to slow interest-rate hikes, but that pressure doesn’t seem to be swaying him. In a speech Wednesday, he noted that rates remain historically low and reiterated that the central bank will continue raising…


L.A. Times – Business

Federal Reserve officials hint at slowdown in future rate hikes

November 17, 2018 |

For the second time this week, a Federal Reserve official on Friday broached the central bank’s key policy dilemma — when to end the current campaign to raise interest rates to more historically normal levels. And the answer seems to be that it could be sooner rather than later.

Vice Chairman Richard…


L.A. Times – Business

Seba Crypto Expects Swiss Banking License, Independent Reserve Integrates Tax Tool

November 15, 2018 |

Seba Crypto Expects Swiss License, Independent Reserve Integrates Tax Tool

In recent exchange news, Seba Crypto AG has predicted that it will receive a Swiss banking license within the first half of 2019. We also look at the Independent Reserve, which has integrated a tax estimator tool into its user interface, as well as Point95 Global, which has announced plans to launch a “crypto quantitative fund” based in the Cayman Islands.

Also Read: Bitfinex Introduces Fees, Bitmex Rejects Claims It Trades Against Customers

‘Crypto Bank’ Aims to Secure License in 2019

Seba Crypto Expects Swiss License, Independent Reserve Integrates Tax ToolGuido Bühler, the chief executive officer of Seba Crypto, has predicted that the company — which recently raised $ 103 million to launch a so-called “crypto-bank” — will receive a banking and securities dealer license from the Swiss Financial Market Supervisory Authority (FINMA) before the end of the second quarter of 2019.

Bühler indicated that Seba Crypto already sees significant demand from major financial institutions. He claimed that “five large asset managers from Germany and abroad have already made representations to [Seba Crypto].”

Australian Exchange Integrates Crypto Tax Estimator

Independent Reserve, an Australian cryptocurrency exchange, has announced the launch of a tax estimator developed by KPMG. The tool will allow the exchange’s users to estimate the tax obligations of their portfolios from its user interface.

Seba Expects Swiss License, Independent Reserve Integrates Tax ToolAdrian Przelozny, the chief executive officer of Independent Reserve, described the tool as “a piece of critical infrastructure that will help our users understand and help manage their risk.”

Laszlo Peter, head of blockchain services at KPMG Australia, emphasized the need for cryptocurrency traders to diligently observe their tax obligations. “The possibility of being non-compliant is a major source of legal risk,” Peter said. “We want to provide an easy-to-use tool that may assist participants in the newly emerging token-based economy to understand their tax obligations.”

Point95 Global to Launch ‘Crypto Quantitative Fund’

Seba Expects Swiss License, Independent Reserve Integrates Tax ToolPoint95 Global, a Shanghai-based digital asset management firm, has announced plans to launch a “crypto quantitative fund” in partnership with an unnamed asset manager in Hong Kong. The fund, to be domiciled in the Cayman Islands, will target professional investors and will use algorithms to capitalize on arbitrage opportunities across various crypto-asset markets.

Point95 Global claims to already be using these strategies to trade the top 10 cryptocurrencies by capitalization. It has put forward $ 3 million in seed capital, with the initial size of the fund expected to be $ 30 million.

Ye Jingyuan, the co-founder and chairman of Point95 Global — as well as the former vice-president of the global markets division of Bank of America Merrill Lynch in London — expects to launch the fund before 2019. He stated that the company is “aspiring to be one of the first crypto quantitative fund platforms that are compliant with the Hong Kong securities regulations, by operating with the right licenses.”

Do you think there is demand for financial institutions offering cryptocurrency-related services? Share your thoughts in the comments section below!


Images courtesy of Shutterstock


At Bitcoin.com there’s a bunch of free helpful services. For instance, have you seen our Tools page? You can even lookup the exchange rate for a transaction in the past. Or calculate the value of your current holdings. Or create a paper wallet. And much more.

The post Seba Crypto Expects Swiss Banking License, Independent Reserve Integrates Tax Tool appeared first on Bitcoin News.

Bitcoin News

Federal Reserve official outlines plans to ease burden of bank stress tests prompted by financial crisis

November 9, 2018 |

Wall Street banks will have to wait a bit longer for regulators appointed by President Trump to make the Federal Reserve’s stress tests less stressful. Their reward for being patient could be many more concessions than the industry anticipated.

Randal Quarles, the Fed’s vice chairman for supervision,…


L.A. Times – Business

Trump’s complaint that the Federal Reserve was ‘going loco’ on interest rates is just plain crazy, analysts say

October 12, 2018 |

The stock market tumbled Thursday for a second-straight session — a combined loss of nearly 1,400 points by the Dow Jones industrial average — and President Trump has been quick to finger the culprit:

The Federal Reserve, headed by his handpicked chairman, Jerome H. Powell.

“We have interest rates…


L.A. Times – Business