Reasons for Bitcoin's fall in August 2024: is it a crash or a correction?
The cryptocurrency market has always been considered the most volatile segment of the financial market, but with each passing day, the trend brings new surprises.
Just a month ago, we experienced the fall of the leading cryptocurrency Bitcoin to a minimum of 55,900, and now, at the beginning of August 2024, a new minimum has formed at a mark below 51,000 dollars per coin.
As usual, panic gripped the cryptocurrency market, with many investors trying to get rid of assets that were falling in price.
What should you do in this situation? Sell at a loss or, conversely, buy coins at the most favorable price?
Trump or Harris: How the election results could impact the US stock market
The results of the US presidential election can significantly impact the stock market, as each candidate's policies can have different implications for different sectors of the economy.
There is no corruption in the United States, but each president pursues his own policy of lobbying for one or another sector of the economy.
Therefore, investors should be prepared for the possibility that after one candidate wins the election, some stocks will rise while others will fall. This represents an excellent opportunity to profit.
After Joe Biden dropped out of the 2024 presidential race, Kamala Harris is being touted as the Democratic Party's most likely candidate to run.
Bitcoin's Summer 2024 Fall: Causes and Likelihood of a Resumption of Growth
The cryptocurrency market has been in decline since early 2024, and Bitcoin is no exception. Since June 2024, Bitcoin's price has fallen another 15%, reaching a new 18-month low.
The current price of the leading cryptocurrency is currently only 56,300 US dollars per coin.
This comes as a surprise to many, as most cryptocurrency market analysts predicted that Bitcoin's price would reach above $100,000 in 2024.
Therefore, a very reasonable question arises: Why did the first cryptocurrency fall in price, what caused the record drop, and what are the chances of a resumption of the upward trend ?
Digital gold from Tether Gold (XAU)
Gold has always been considered one of the best options for long-term capital storage, but storing physical bullion has many disadvantages.
With the advent of cryptocurrencies, an alternative to physical gold has emerged: tokens tied to the price of the precious metal.
While previously existing versions of similar altcoins weren't exactly credible, Tether Limited, the company that issued the most popular stablecoin, has announced the launch of a gold-based cryptocurrency.
Digital gold Tether Gold (XAU) is a cryptocurrency pegged to the price of physical gold.
XRP cryptocurrency could rise to $1,000 per coin
In 2024, cryptocurrency like XRP is increasingly attracting investor attention, with token trading volumes growing daily.
An analysis by cryptocurrency market analysts suggests that XRP, the token of the well-known project Ripple, could experience explosive growth, reaching an incredible mark of $1,000.
This forecast is based on expected changes in the cross-border payments sector, where XRP plays a significant role. The cryptocurrency is already widely used for bank-to-bank transactions, and expanding its reach will only increase its liquidity .
In the near future, XRP could become a key player in facilitating cross-border payments due to its functionality, which could lead to a significant increase in its value.
Why is Bitcoin falling after the halving?
Despite numerous assurances that the price of Bitcoin will soar after the next Halving, the crypto market is experiencing the opposite situation.
After Bitcoin made a new high of $73,000 in March 2024, the price has fallen significantly and is currently trading at $57,000 per coin.
Before the Halving, numerous forecasts were published on the Internet, predicting an increase in the price of the main cryptocurrency to 100,000 or even 150,000 dollars.
Why did the cryptocurrency fail to live up to expectations and begin to decline, dragging the entire cryptocurrency market down with it?
Euro-dollar exchange rate forecast for autumn 2024: which currency to choose?
The most liquid and convenient currencies for storing savings today remain the euro and the US dollar.
As an alternative, you can, of course, use Swiss francs, but they have less liquidity and sometimes have problems exchanging them, so the dollar and euro remain the preferred currencies.
At the end of April 2024, the EURUSD exchange rate was around 1.07 US dollars per euro, but many skeptics predict a rapid decline in the euro's value and a 1:1 price reduction, as happened in 2022.
But is it worth getting rid of euros now and urgently exchanging them for US dollars, so as not to lose on the exchange rate due to the euro's decline?
The legendary "Battle of Traders" is about to begin! Hurry and participate in the demo account contest
The "Battle of Traders" competition has been running since 2018, and over its long history, it has become a true legend! New winners are announced monthly by the organizer— NPBFX , a broker established in 1996.
Hurry to participate in the next tournament of the popular competition and win $1,000 to your trading account, as well as a super prize – the latest iPhone model!
But first things first.
How the "Battle of Traders" works
Every month a new “stage” of the competition begins, in which everyone can participate after registration.
Overall, hundreds of traders from around the world have won the competition since its inception: Russia, Kazakhstan, Belarus, Egypt, Indonesia, Malaysia, and others.
Why isn't the hryvnia falling against the dollar and euro?
After the war began in 2022, the Ukrainian hryvnia's exchange rate plummeted. Before the outbreak of hostilities, one US dollar was worth 28 hryvnias; within a couple of months, one dollar was worth 37 hryvnias.
It would seem that everything is logical; war on the territory of a country never adds stability to the national currency.
But things started to get weird later: for a year and a half now, the hryvnia hasn't fallen below 40 hryvnias per US dollar. Why isn't it declining further, despite the problems in the Ukrainian economy?
In fact, the answer to this question is quite simple: the hryvnia exchange rate remains at its current level thanks to the efforts of the National Bank.
During the first year, there were restrictions on the purchase of foreign currency imposed by the NBU; it was practically impossible to buy dollars or euros through a bank.
How will stock exchanges operate during Easter 2024?
This year, 2024, Easter falls on Sunday, March 31st. How will stock exchanges operate on holidays and days leading up to them?
Although the holiday itself traditionally falls on a Sunday, traders may experience changes in trading on Thursday, March 28 and Monday, April 1.
March 28, 2024 (Maundy Thursday) – early closure or no trading is expected on stock exchanges in the following countries: Argentina, Venezuela, Denmark, Iceland, Colombia, Costa Rica, Malaysia, Mexico, Norway, Peru, Philippines, Sweden.
This will lead to a drop in liquidity for some assets, especially if they are directly linked to the above-mentioned countries.
How could European Commission fines crash Apple, Google, and Meta shares?
According to the well-known news agency Bloomberg , the largest IT companies Apple, Google and Meta are facing huge fines.
The European Commission is conducting investigations into violations of digital market legislation.
Each of the defendants faces their own charges: Google is accused of promoting its subsidiary services in search results, Apple's App Store rules do not comply with DMA requirements, and Meta faces claims regarding the introduction of fees for using Instagram and Facebook.
If a violation of the rules is confirmed, companies face fines amounting to 10% of their total income.
Shelling of Russian refineries is pushing up oil prices
The price of oil is quite sensitive to geopolitical factors; oil begins to rise even at the slightest threat of production cuts.
Recently, Ukraine has increased the number of strikes on the Russian Federation's oil refinery complex.
According to the publication Ekonomicheskaya Pravda , 13 oil refineries in Russia were damaged in 2024 alone, representing approximately 14% of the country's total capacity.
The role of oil refineries in oil pricing cannot be underestimated. Refineries perform a critical function, converting crude oil into products ready for end use, such as gasoline, diesel fuel, and jet fuel.
How much will gold cost in 2024 and is it worth buying?
Gold is the most popular asset used to hedge investment risks and the risk of money depreciation.
Over the past 10 years, gold has risen in price by more than 70% and is now priced at around US$2,000 per troy ounce .
But despite the attractiveness of this asset, the price of gold does not always rise; for example, in 2012 the cost of the precious metal fell by more than 20%.
Therefore, it cannot be said that this investment option is 100% guaranteed to bring profit; everything depends on when you buy the metal and when you sell it.
Forecast of the dollar and euro exchange rates for 2024, taking into account current trends
In 2024, the leading world currencies will still be the US dollar and the euro.
But which of these currencies should you bet on in the coming year, and where is it best to store the bulk of your funds?
What will be the forecast for the US dollar exchange rate against the European currency Euro, taking into account the events that will happen in 2024?
At the moment, the situation is rather ambiguous, as both currencies are subject to pressure from the unstable political situation and the economic crisis.
What will the Polish zloty exchange rate be in 2024?
The Polish zloty to US dollar exchange rate is an important indicator of the state of the Polish economy.
It reflects the dynamics of prices for goods and services imported into Poland, as well as for exported goods and services produced domestically.
In recent years, the Polish zloty to US dollar exchange rate has shown a downward trend, meaning there has been a gradual decline in the value of the zloty.
In 2023, the average exchange rate was 4.20 zlotys per dollar, which is 10% lower than in 2022, when the geopolitical situation in the region worsened.
Artificial intelligence Bard assessed the likelihood of Binance exchange bankruptcy
Recently, numerous media reports have appeared about the possible bankruptcy of the largest cryptocurrency exchange, Binance.
These reports have raised concerns among investors about their funds, which will be frozen in the event of an unfavorable scenario.
The cause for concern and panic was a series of unfortunate events. First, there was the collapse of the cryptocurrency market, followed by the ban on the issuance of BUSD stablecoins and their withdrawal from Russia, followed by a lawsuit against the exchange for failure to comply with international anti-money laundering regulations.
As a result, Binance is required to pay a fine of 4.3 billion dollars, and its head, Changpeng Zhao, is required to resign as CEO.
Forex trading on the news – NPBFX invites you to free webinars!
The number of educational webinars offered to traders is growing daily.
Deceptively attractive headlines are found on literally every website dedicated to Forex trading.
But how can you find truly valuable information that you can trust among all this “noise”?
We invite you to take a look at free online webinars from the progressive broker NPBFX .
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New markets: why investing in the Indian economy is more promising
Most people think that there are no other stocks other than the American companies we constantly hear about in the news.
But there are other markets, including developing ones, that have great prospects for growth and dividend payments.
Europe and the United States are currently experiencing difficult times, with most experts predicting a rapid collapse of their stock markets, which is why investors are increasingly looking toward new assets.
At the same time, the most interesting alternative destinations are considered to be countries such as China and India.
The question naturally arises: what to choose for investing money, China or India?
The current situation in the European economy
Understanding the current state of the EU economy helps in making important decisions, such as investing in European company shares or buying euros.
The European Union, like most other countries worldwide, has recently been experiencing difficult times. The pandemic and rising energy prices are the main causes of the current economic situation.
Record inflation has led to higher interest rates , taking the European Central Bank's key interest rate to 4.5%, the highest level since the euro's inception.
The eurozone economy stalled or even contracted in the third quarter of 2023 under the combined burden of interest rate hikes.
How the war between Israel and Palestine will affect global financial and commodity markets
The conflict between Israel and Palestine, which began on October 7, 2023, has already had a negative impact on global financial and commodity markets.
The ongoing conflict in the heart of the Middle East could have significant implications for global financial and commodity markets.
The region is a critical node in global economic and energy networks, and any long-term tension or instability could cause significant fluctuations at the global level.
The first to react will be markets directly linked to the conflict zone; for example, Israel is the largest supplier of diamonds, medicines, agricultural products, and fertilizers.
Central banks are increasingly favoring non-reserve currencies when building up reserves
The US dollar has long been one of the world's key currencies. Today, it continues to play a leading role, despite the US economy's declining share of global output.
However, central banks hold fewer dollars in their reserves than before. Last year, the dollar's share of global foreign exchange reserves fell below 59%, continuing a trend seen over the past 20 years.
The first blow to the dominance of the American currency was the emergence of its main competitor, the Euro; currently, the European currency accounts for about 20% of the Central Bank's reserves.
In recent years, the economies of Europe and the United States have been experiencing difficult times, which inevitably impacts the popularity of their currencies. Consequently, new trends are beginning to emerge in central bank policy.
American investors are losing interest in the Chinese stock market
The Chinese stock market has been one of the fastest growing in the world in recent years, with shares of Chinese companies in high demand among investors.
However, in recent months, American investors have become increasingly uninterested in Chinese securities.
According to Bloomberg , US investors' investment in Chinese stocks fell 70% in July 2023 compared to July 2022.
There are a number of objective reasons why Americans are gradually losing interest in the Chinese stock market.
HSBC predicts a recession in the US in the fourth quarter of 2023, followed by a recession in Europe in early 2024
Joseph Little, one of the asset managers at the British banking giant, said: "We are experiencing a slight decline in profits, and the number of corporate defaults is steadily increasing.
We are assured that high inflation will decline relatively quickly, which will give policymakers the opportunity to cut rates.
Despite statements from central bank officials and obvious pressure on inflation, HSBC Asset Management expects the Fed to cut rates by the end of 2023, with the ECB and Bank of England following suit in 2024.
The Fed is pausing monetary tightening and keeping its target range for the federal funds rate at 5% to 5.25%, but signaling that two more rate hikes are possible this year.
How much are Apple Inc. shares really worth?.
Blue chips, or shares of top companies, have always been in high demand among potential investors on the stock exchange.
Apple Inc. securities have been classified as blue chips for several years now and are one of the most liquid assets on the securities market.
Over the past five years, Apple's stock price has more than quadrupled to $183, bringing the company's market value close to $3 trillion.
At the same time, net profit for 2022 amounted to almost 100 billion US dollars, part of the profit was used to pay dividends.
A weak Japanese yen has boosted Japan's economic growth outlook
A cheap national currency is not always a negative factor for a country's economy; most countries artificially try to prevent excessive strengthening of their currencies.
One of the countries that is trying to lower the exchange rate of its national currency is Japan, whose Central Bank very often intervenes in the foreign exchange market.
In 2022, the Japanese yen saw a record decline against the US dollar and other global currencies.
If over the past ten years the average price of the USD/JPY was at the level of 110 dollars per 1 dollar, then in 2022-2023 the situation changed significantly and the quote reached a 24-year high.
ECN with a minimum deposit and additional bonuses upon opening
It is no secret that the best account option for trading on the stock exchange is an account using ECN (Electronic Communication Network) technology.
The Electronic Communication Network eliminates interference in the trading process and ensures maximum speed of transaction execution.
The only drawback of such accounts is that brokers impose rather high deposit requirements when opening them.
The minimum deposit for ECN accounts is usually several thousand US dollars, but thanks to a promotion run by one of the brokers, you can open this account for much less.
Which is more promising, platinum or gold?
Over the past few months, many investors who bought gold at prices above $2,000 per troy ounce have been wondering why gold has stopped rising?
Almost every day the news reports on a possible US default and how much the precious metal will rise in price after that, but the price still moves in the range of 2000-2050 dollars.
There are many reasons why gold prices are not rising, but the most important one is the low demand for this precious metal.
A paradoxical situation has developed in the market: on the one hand, central banks and small investors are buying up gold bars, while on the other hand, there is a decrease in demand for gold jewelry and an increase in the supply of the metal.
What could investment restrictions in the Chinese economy lead to?
Today, China is the world's second-largest economy, with China's GDP estimated at over US$18 trillion in 2022.
The country managed to achieve this figure, not least thanks to foreign direct investment.
Every year, foreign investors invest approximately 200 billion dollars in the development of the Chinese economy, and this figure grows by an average of 20% every year.
Recently, the US administration announced that it is preparing a package of sanctions against China, which will also affect investments in the Chinese economy.
Conflicting price predictions for major cryptocurrencies
The financial crisis has led to people losing trust in banks, with hundreds of billions of US dollars in deposits recently being withdrawn from banks.
However, not everyone prefers to keep their withdrawn funds in cash; many investors choose to invest in cryptocurrencies as an alternative to deposits.
While forecasts for this type of asset are far from clear-cut, some predict sky-high prices for major cryptocurrencies, while others predict the market will fall to a new low.
Currently, the price of Bitcoin is around $30,000, and the second most popular digital currency, Ethereum, is approaching the $2,000 mark per coin.
Cryptocurrency traders prefer not to pay taxes
Every year, the popularity of cryptocurrency trading grows exponentially, with more and more people making money through speculative trading using digital assets.
The profit is calculated in millions, and sometimes tens of millions of American dollars.
It would seem that large earnings suggest a desire to share the money and pay taxes on the excess profits received.
However, according to a study conducted by Swedish company Divly, only 0.5% of cryptocurrency traders paid taxes on their profits in 2022.
Short position ban for Muslims and other Sharia-compliant trading considerations
Islam is one of the few world religions that still strictly adheres to the laws set out in its fundamental dogmas and the decisions of its spiritual councils.
Sharia law applies to virtually all areas of the lives of believers, including stock trading.
One of the latest innovations is a ban on short, uncovered positions and the use of leverage for Muslims in the Russian Federation.
This means that believers who practice this religion in the Russian Federation will no longer be able to make unsecured sales transactions or trade using borrowed funds from a broker.
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