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Safemoon could overtake Dogecoin as currency rockets but Bitcoin may fall 50%

BITCOIN could see a “major correction” and plunge by 50% pulling back to $20,000, an analyst has said.

Speaking to CNBC’s Worldwide Exchange, Guggenheim Partners’ Scott Minerd said the world’s largest cryptocurrency has run too far, too fast.

“I think we could pull back to $20,000 to $30,000 on bitcoin, which would be a 50% decline, but the interesting thing about bitcoin is we’ve seen these kinds of declines before,” Minerd said.

It comes as one of Britain’s most prominent investors has put $100m (£72m) into the UK’s biggest cryptocurrency company.

Baillie Gifford has become the biggest outside shareholder in Blockchain.com with the investment.

The Edinburgh asset manager has been an early backer of Silicon Valley giants including Google, Tesla and Airbnb.

However, its support for Blockchain.com – a service that lets users buy and store cryptocurrencies such as Bitcoin – is its biggest push into digital currencies so far.

Read our cyptocurrency live blog below for the very latest updates…

  • CRYPTOCURRENCY ENJOYING BOOM IN TURKEY

    Cryptocurrency trading is also enjoying a boom in Turkey.

    It comes as investors seek refuge from the country’s economic turmoil and surging inflation.

  • REGULATOR CALLS FOR MORE SOCIAL MEDIA RULES

    The regulator has called for new social media rules being proposed by the government to include action on the financial harms it can cause.

    A spokesperson for the FCA said: “The FCA believes that there is a strong case to include financial harms in the Online Safety Bill, given the scale of harm that investment fraud causes to consumers, many of whom are vulnerable.” 

  • BEWARE OF ONLINE SCAMS

    Martin Bamford, a financial advisor, said: “Investment tips on TikTok are the latest version of the get rich quick schemes that have been around for centuries.

    “A lot of the trading and investing videos we see on TikTok are either blatant scams or misguided attempts at advising others.

    “Take anything you watch about investing money with a pinch of salt and always check the credentials of the person giving the advice.

    “Rather than getting rich quickly, you are likely to lose money fast if you follow the tips you find on TikTok.”

  • ALL ABOUT SAFEMOON

    What is the new cryptocurrency SafeMoon?
  • FCA SAYS CONSUMERS SHOULD BE WARY OF SOCIAL MEDIA ADVICE

    The Financial Conduct Authority (FCA), which regulates the industry and protects consumers, has warned of the risks of taking advice from social media.

    An FCA spokesperson said: “There are risks with taking unregulated investment advice and we engage with social media platforms to have pages which breach our regulations taken down.

    “Consumers should be wary of adverts and advice online and on social media promising high-return investments, and should always do further research on the product they are considering.”

  • PEOPLE WARNED OVER ‘RISKY’ TIPS SHARED ON TIKTOK

    The financial watchdog has warned over “risky” trading tips being shared on TikTok.

    Traders organising themselves on Reddit bought into Gamestop sending its share price surging, and causing professional hedge funds to lose millions.

    TikTok users have been sharing their “tips” for trading shares in Gamestop and other companies, the BBC found, as well as cryptocurrencies like Dogecoin.

    But the financial advice does not come with any warnings of the risks involved in investing.

  • RISKS OF CRYPTO INVESTMENTS

    • Consumer protection
    • Price volatility
    • Product complexity
    • Charges and fees
    • Marketing materials
  • WHAT IS CRYPTOCURRENCY ANYWAY?

    There are thousands of different kinds of cryptocurrencies, although among the best-known are Bitcoin, Ripple, Litecoin and Ethereum.

    And cryptocurrencies aren’t like the cash we carry.

    You couldn’t pay for your food shop with it, and no major high street shop in the UK accepts it as payment.

    The Bank of England says: “Development is under way to make cryptocurrency easier to use, but for now it isn’t very ‘money-like’.

    “This is why central banks now refer to them as ‘cryptoassets’ instead of ‘cryptocurrencies’.

    “Today cryptocurrencies are generally held as investments by people who expect their value to rise.”

  • REASONS TO BE CHEERFUL?

    Despite his hair-raising predictions on Bitcoin, detailed in the posts below, Mr Minerd said he remains optimistic for the future.

    He said he believes such a big correction is be part of “the normal evolution in what is a longer-term bull market”, before suggesting the price of Bitcoin was heading towards $400,000 to $600,000.

  • ‘IT’S FROTHY AND A MAJOR CORRECTION IS ON THE WAY’

    More on that last post now.

    Mr Minerd described the market as “frothy”.

    “Given the massive move we’ve had in Bitcoin over the short run, things are very frothy, and I think we’re going to have to have a major correction in Bitcoin,” he said on CNBC’s Worldwide Exchange.

    “I think we could pull back to $20,000 to $30,000 on Bitcoin, which would be a 50 per cent decline, but the interesting thing about Bitcoin is we’ve seen these kinds of declines before.”

  • BITCOIN COULD HALVE IN VALUE SOON, SAYS FINANCE CHIEF

    The global chief investment officer of one of the world’s largest financial firms says a major correction is on the way on the price of Bitcoin, City AM reports.

    Scott Minerd of Guggenheim Partners says Bitcoin has overstretched itself at a dangerous speed.

    And he thinks the flagship cryptocurrency could halve in value over the coming weeks.

    More on this next.

  • CRYPTO KING

    The pseudonymous creator of Bitcoin is now one of the world’s richest people.

    Based on their estimated holdings of the cryptocurrency, Satoshi Nakamoto is believed to own about one million Bitcoin, which is roughly five per cent of the total supply that will ever be created.

    As the currency’s value has skyrocketed in recent months – hitting $63,509 (£46,073) at the time of writing – so too has Nakamoto’s estimated wealth.

  • TESLA AND MASTERCARD EMBRACE CRYPTOCURRENCIES

    Major firms including BNY Mellon, Mastercard Inc and Tesla Inc are among those to have embraced or invested in cryptocurrencies.

    Bitcoin topped $60,000 early last month, fuelled by Tesla’s move to buy $1.5 billion of the digital currency for its balance sheet. For the past two weeks, it had traded in a tight range.

    “When bitcoin markets create new highs, the price often range-trades and we witness a round of profit-taking,” said James Butterfill of digital asset manager CoinShares.

  • WHAT IS BITCOIN?

    Bitcoin is a virtual currency that was created in 2009 by an unknown computer whizz using the alias Satoshi Nakamoto.

    Unlike physical currencies such as pounds, dollars or euros, which come in physical notes and coins, Bitcoin isn’t printed or minted.

    Instead, Bitcoin tokens are a digital-only form of payment and are created by a computer code.

    If you have invested in Bitcoin, you can set up a virtual wallet to store, keep track and spend your digital money.

    You are also able to purchase Bitcoin through an online exchange or Bitcoin ATM –  but not all businesses accept Bitcoin as a form of payment.

    You can use the Where To Spend Bitcoin UK website to find merchants that accept the currency.

  • VENMO CRYPTO

    PayPal-owned mobile payments service Venmo on Tuesday began letting users in the United States buy, hold or sell cryptocurrency using its app.

    The expansion into the hot digital money trend comes on the heels of PayPal last month allowing people in the United States to use cryptocurrency to make purchases from millions of merchants that use the financial platform for online transactions.

    The payments giant had already let users buy, sell or store digital money.

    Venmo said a new feature rolling out to its more than 70 million users will let them buy or sell Bitcoin, Ethereum, Litecoin, or Bitcoin Cash versions of digital money.

  • WHAT IS SAFEMOON?

    Not a huge amount is known about Safe Moon meaning the risk to your investment may be even higher.

    Technically it’s not a cryptocurrency – it’s an DeFi token – according to it’s website.

    DeFi stands for decentralised finance token. They are very complex but essentially aim to disrupt the finance world to enable people to follow and lend in peer-to-peer networks, without needing a bank.

    Like Bitcoin they use a complicated method called blockchain technology.

  • BITCOIN COULD DROP BY 50% AFTER RISING TOO MUCH TOO FAST, SAYS GUGGENHEIM’S SCOTT MINERD

    Bitcoin could plunge to as low as $20,000 after its sharp rise up to record-highs, Guggenheim Partners’ Scott Minerd said today.

    “Given the massive move we’ve had in bitcoin over the short run, things are very frothy, and I think we’re going to have to have a major correction in bitcoin,” Minerd told CNBC’s “Worldwide Exchange.”

    “I think we could pull back to $20,000 to $30,000 on bitcoin, which would be a 50% decline, but the interesting thing about bitcoin is we’ve seen these kinds of declines before,” Minerd said.

  • WHICH CRYPTOCURRENCY PRICES ARE DOWN?

    Bitcoin, the most popular cryptocurrency, had its biggest one-day drop in two months over the weekend and it’s the latest wild movement for the cryptocurrency.

    Last week Bitcoin hit record highs, surging above $64,000 for the first time ever.

    Bitcoin is down nearly 4% in the last 24 hours and down nearly 10% over the past week, and is currently trading at $55,324 (£39,548) at the time of writing according to CoinMarketCap.

    Ethereum, the second-largest cryptocurrency, also hit record highs last week rising to $2,547 and has since fallen.

  • BITCOIN SCAM – US SEEKS ‘BRIT MAN BENJAMIN REYNOLDS’

    Officials are looking for a mysterious British man behind a £100million Bitcoin scam.

    US regulators say they want to speak to Benjamin Reynolds, 38, even though some victims believe he may not exist.

    The Commodity Futures Trading Commission has accused Reynolds, from Manchester, of stealing Bitcoin through a firm called Control-Finance.

    A court in New York has ruled that he owes £103million in compensation, in addition to a £310million fine.

    The price of Bitcoin hit a record high of £46,700 this week.

  • HOW MANY BITCOIN ARE THERE?

    There are currently about 21 million Bitcoin tokens in existence.

    To receive a Bitcoin, a user must have a Bitcoin address – a string of 27-34 letters and numbers – which acts as a kind of virtual postbox.

    These addresses are in turn stored in Bitcoin wallets, which are used to manage savings.

    The bulk of Bitcoin “mining” is done in China, where energy costs are cheaper than in places like the UK or US.

  • SAFEMOON VALUE OVER TIME

  • FIVE RISKS OF CRYPTO INVESTMENTS

    • Consumer protection: Some investments advertising high returns based on cryptoassets may not be subject to regulation beyond anti-money laundering requirements. 
    • Price volatility: Significant price volatility in cryptoassets, combined with the inherent difficulties of valuing cryptoassets reliably, places consumers at a high risk of losses.
    • Product complexity: The complexity of some products and services relating to cryptoassets can make it hard for consumers to understand the risks. There is no guarantee that cryptoassets can be converted back into cash. Converting a cryptoasset back to cash depends on demand and supply existing in the market. 
    • Charges and fees: Consumers should consider the impact of fees and charges on their investment which may be more than those for regulated investment products.  
    • Marketing materials: Firms may overstate the returns of products or understate the risks involved.
  • CONTINUED – GERMAN BANK TO DE-LIST SHARES OF CRYPTOCURRENCY EXCHANGE COINBASE GLOBAL

    Coinbase did not immediately respond to an emailed request for comment outside U.S. business hours.

    Deutsche Boerse subsidiary Clearstream, a major European player in the clearing and settlement of trades, has cancelled the settlement agreement for Coinbase shares effective April 23, a person familiar with the matter told Reuters.

    As a result, not only the Frankfurt stock exchange but also other German exchanges will stop trading the shares, the source added.

    Clearstream declined to comment.

    The U.S. cryptocurrency exchange made its Nasdaq debut last week, its direct listing marking a major milestone in the development of bitcoin and other digital assets.

  • GERMAN BANK TO DE-LIST SHARES OF CRYPTOCURRENCY EXCHANGE COINBASE GLOBAL

    Deutsche Boerse said on Wednesday it would de-list the shares of cryptocurrency exchange Coinbase Global from its Xetra trading system and the Frankfurt stock exchange by the end of Friday’s trading session.

    “The reason for the de-listing is a missing reference data for these shares,” Deutsche Boerse said, adding that the de-listing would apply until further notice.

    When Coinbase trading started at Deutsche Boerse’s platforms, a wrong reference code – a so-called LEI code – was used by mistake, Deutsche Boerse said. It was not clear whose mistake it was.

    Such an individual reference code is needed for identification and a regulatory requirement for admission to trading. “The only way for Coinbase to resume trading is for the issuer to apply for an LEI,” Deutsche Boerse said.

  • CRYPTOCURRENCY SCAMS CHEAT INVESTORS

    There have been several cryptocurrency scams which have resulted in investors being fleeced of millions of pounds.

    Australian man Stefan He Qin, 24, pleaded guilty in February to securities fraud for cheating investors of over $90million by squandering money they spent on his cryptocurrency fund.

    Authorities said the fraud occurred from 2017 to 2020 as Qin operated the fund titled Virgil Sigma.

    “Stefan He Qin drained almost all of the assets from the $90million cryptocurrency fund he owned, stealing investors’ money, spending it on indulgences and speculative personal investments, and lying to investors about the performance of the fund and what he had done with their money,” US Attorney Audrey Strauss said in a release.



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