Short Change: There are parallels between the GameStop saga and Bitcoin, according to CNBC. Data from The Block Crypto indicates that hedge funds are short on the apex coin by over $1 billion.
The shorting picked up speed around October last year which coincides with the uptick in Bitcoin price. The cryptocurrency reached its all-time high of $41,941.56 on Jan. 8.
At the same time, retail interest in cryptocurrencies has remained strong, with Robinhood having to shut off some cryptocurrency trading features as DOGE soared. The brokerage also restricted buying of GameStop and other shares amid the retail frenzy.
The Long and Short Of It: WallStreetBets has spurred conversation among Bitcoin enthusiasts of a similar short squeeze rally in the cryptocurrency.
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What happened
Shares of several companies with deep ties to the cryptocurrency market soared on Tuesday, Feb. 2. Cryptocurrency asset manager
Riot Blockchain (NASDAQ:RIOT) gained as much as 10.1%, Chinese-American cryptocurrency mining expert
Precious Metals Outlook 2021: Renewable Energy Will Be a Key Driver February 1, 2021
Precious metals in general did very well in 2020, and I expect them to keep pace in 2021, supported by heightened efforts in the U.S. and elsewhere to transition from fossil fuels to renewable energy.
Gold bullion gained more than 25%, its best year since 2010. The surge in money supply due to pandemic stimulus helped fuel the rally. The amount of M1 money moving around the U.S. economy skyrocketed 66% from last year.
2020 marked the fifth straight year of positive gains for the yellow metal. In the past 15 years, gold has been up 80% of the time, a remarkable track record.
Fed maintains monetary policy that helped bitcoin grow as BTC’s decentralization improves
Image via Unsplash.
CryptoCompare data shows the price of Bitcoin (BTC) moved from around $34,000 to a low under the $30,000 mark before the cryptocurrency’s price recovered. It’s now trading at $34,000. BTC has been ranging between $30,000 and $40,000 for about a month now.
Ether (ETH), the second-largest cryptocurrency by market capitalization, started the week above $1,400 but dropped to little over $1,200 before recovering. It’s now trading at $1,350 as traders are seemingly moving toward alternative cryptocurrencies.
This week the Federal Reserve, the central bank of the United States, revealed it was holding benchmark interest rates near zero following the conclusion of a two-day meeting, and said it would continue to buy at last $120 billion of bonds each month “until substantial further progress has been made toward the Committee’s maximum employment and