Bitcoin Bangs the Close and Credit Ratings Agencies Threaten the US
Invstr Crunch hot tip; if you own a huge amount of a single stock and you ever want to sell all of it, don’t cram it all into one sell order. This is known as ‘hitting the bidstick’ and can be mistaken for price manipulation as the stock will crash when you place the order.
We can see an example in Bitcoin from this weekend; down 15% on a $1 billion order from one person. It’s best to use a staggered selling strategy instead when trading in big lumps.
We don’t know who’s behind this most recent madness, but Japanese traders seem to be rejoining the crypto craze. There’s also spillover into crypto from gold bugs who can’t get their hands on physical bullion at the moment. Still, Walmart and Amazon don’t accept it…
The United States government will defend the greenback. Its unrivalled reputation as a safe medium of exchange for goods and services has stood for decades, but we might be getting complacent. Fitch, one of three credit rating agencies, is threatening to downgrade US debt.
Fitch quotes “the deterioration in US public finances and absence of a credible consolidation plan,” as in the wake of coronavirus, companies have taken on debt lifelines while simultaneously becoming less able to service that debt.
The ball is in Jerome Powell’s court, head of the Federal Reserve!
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.
