Bitcoin finds a bottom as risk aversion grips global markets

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What’s supposed to be the most volatile asset in the universe is proving to be a bastion of stability compared with wild swings and carnage in global equities this week.

Bitcoin clawed its way back from the four-month low of $US5922 it touched on Tuesday, rebounding almost 45 per cent to $US8500.

US regulators warn of cryptocurrency risks

US regulators warn of cryptocurrency risks

“If you’re going to give them money, you’d better be prepared to lose it,” top US financial regulators have warned a Senate panel unregulated exchanges pose significant risks to investors.

Volatility is back with vengeance, but …

Volatility is back with vengeance, but for how long?

Extreme volatility is back in the equity markets, and these macro themes should dominate the ASX 200 earnings. We will look out for the drivers that could trigger a reduction in volatility. (This video was produced in commercial partnership between Fairfax Media and IG Markets.)

ASX winners and losers – a snapshot

ASX winners and losers – a snapshot

The stand out listings traded on the ASX captured at key moments through the day, as indicated by the time stamp in the video.

Asian markets in turmoil as Wall Street …

Asian markets in turmoil as Wall Street slides

Asian stocks tumbled to two-month lows on Friday after Wall Street shares suffered yet another big slide in the face of rapidly-rising bond yields.

Treasurer urges calm during market …

Treasurer urges calm during market volatility

Treasurer Scott Morrison says there is a “big difference” between what is happening in the Australian economy compared to what is happening in the US after the Dow Jones plunged over 1000 points.

Why we need a banking royal commission

Why we need a banking royal commission

Shani Goldsbro, who has been waiting for an answer to a TPD insurance claim for six years, is hoping the royal commission into the banking and financial services sector will “shine a light” on situations like hers.

Myer stocktake sales flop

Myer stocktake sales flop

Myer has revealed it’s annual stocktake sales flopped last month. The share price received an all time low in trading today.

Explaining Australia’s internet struggle

Explaining Australia’s internet struggle

A look at the once ambitious plan to upgrade Australia’s internet and how the National Broadband Network ended up where it is today.

US regulators warn of cryptocurrency risks

“If you’re going to give them money, you’d better be prepared to lose it,” top US financial regulators have warned a Senate panel unregulated exchanges pose significant risks to investors.

The S&P 500 Index and the Dow Jones Industrial Average both fell more than 5 per cent this week, wiping out gains for the year. Emerging markets stocks and currencies also plunged, while shorter maturity US Treasuries climbed as investors fled from risky assets to safe-havens.

Bitcoin’s supporters are quick to extol the cryptocurrency’ virtues as an asset that’s uncorrelated to the broader market – independent from any single country, company or central bank – which can serve as a haven in times of market turmoil.

Since the drop below $US6000, Bitcoin has been on a steady climb.
Since the drop below $US6000, Bitcoin has been on a steady climb. Photo: Bloomberg

And while that turmoil can usually be found in Bitcoin prices and headlines, this week US equities are beating the largest cryptocurrency on that field.

Since the drop below $US6000, Bitcoin has been on a steady climb, causing volatility measures on the digital asset to stabilise while the sell-off in the S&P 500 triggered the biggest jump on the Chicago Board Options Exchange Volatility Index ever.

The “do no harm” approach to cryptocurrencies taken by US regulators at a Senate hearing on Tuesday sparked the rebound, while negative headlines from regulatory crackdowns in China and South Korea that have weighed on prices subsided.

The 70 per cent slump from Bitcoin’s high of almost $US20,000 has prompted finance heavy weights to say the crypto bubble had finally popped. Judging from price action this week at least, maybe those calls were premature.

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Bloomberg