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Bitcoin Is Unlike Any Other Bubble We’ve Seen So Far

(Bloomberg) — While the jury is still out on whether Bitcoin is a bubble, one thing is certain: it’s unlike any other bubble we’ve seen.

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Bitcoin Is Unlike Any Other Bubble We’ve Seen So Far

Source: Bloomberg

Previous speculative asset-inflation episodes were either a one-off, like tulip mania in the 17th century, or the boom-doom cycle took many years, like gold. Bitcoin, by comparison, has survived three peak-to-trough drawdowns of over 80% in less than 10 years. The cryptocurrency surged past $40,000 last week to set an all time high. It has fallen more than 15% since then.

Man Group, the world’s biggest publicly traded hedge fund firm, compares Bitcoin to Prometheus in Greek mythology, whose liver keeps growing back, every time a giant eagle pecked it out.

“Every time a Bitcoin bubble bursts, another grows back to replace it,” Man Group’s analysts wrote in a note dated Jan. 12. “This very frequency makes the Bitcoin narrative somewhat atypical relative to the great bubbles of the past.”

Here’s a table of some financial bubbles compiled by Man Group:

Read More:

Bitcoin’s Biggest Plunge Since March Shakes Faith in Crypto Boom

Bitcoin’s Wild Weekends Turn Efficient Market Theory Inside Out

Bitcoin’s Slide Dents Price Momentum That Dwarfed Everything

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Business

BITCOIN GOES BOOM ^ ABOVE 50K 1st TIME E V E R.

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BITCOIN GOES BOOM ^ ABOVE 50K 1st TIME E V E R.

KEY POINTS

  • Bitcoin surged to an all-time high of more than $50,000 on Tuesday.
  • Large firms like Tesla, Mastercard and BNY Mellon have shown support for cryptocurrencies.
  • Many crypto investors believe the current bull run is different to a late 2017 bubble.

MORE… CNBC. 😉

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Economy

US Bans All Cotton Products and Tomatoes From China’s Xinjiang…

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US Bans All Cotton Products and Tomatoes From China’s Xinjiang…

Newsmax

The Trump administration announced an import ban on all cotton and tomato products from western China’s Xinjiang region Wednesday over allegations they are made with forced labor from detained Uighur Muslims.

U.S. Customs and Border Protection said the order applies to raw fibers, apparel, and textiles made from Xinjiang-grown cotton, as well as canned tomatoes, sauces, seeds, and other tomato products from the region, even if processed or manufactured in third countries.

The agency, which is part of the Department of Homeland Security (DHS), estimates about $9 billion of cotton products and $10 million worth of tomato products were imported from China into the United States in the past year.

DHS acting deputy secretary Kenneth Cuccinelli told a news briefing the order sends a message to importers: “DHS will not tolerate forced labor of any kind” and companies should eradicate Xinjiang products from their supply chains.

The move is the latest by the Trump administration in its final days to harden the U.S. position against Beijing, erecting economic penalties that would make it more difficult for President-elect Joe Biden to ease U.S.-China tensions after he takes office Jan. 20.

In December, Congress passed the bipartisan Uyghur Forced Labor Prevention Act, which assumes that all goods manufactured in Xinjiang are made with forced labor and therefore banned, unless CBP certifies otherwise.

Secretary of State Mike Pompeo, in his final days in office, has been weighing a determination as to whether forced labor in Xinjiang constitutes an “atrocity” or labeling it “genocide,” which analysts say would have significant implications for relations with China.

The region wide import ban follows a move to block cotton imports from China’s largest producer, the military-linked Xinjiang Production and Construction Corps (XPCC). Both will have a big impact on cotton production in Xinjiang, which produces as much as 20% of the world’s supply of the commodity.

Cotton futures prices fell slightly Wednesday, but traders attributed the drop to profit-taking after prices hit a two year high on a U.S. production outlook cut.

CBP officials said some 43 shipments of cotton-based products have been detained at U.S. entry ports since the XPCC ban was announced.

The U.S. apparel industry had previously criticized a broad ban as impossible to enforce. A coalition of apparel and retail groups said Tuesday in a joint statement that members were working to push forced labor from their supply chains but hoped to work with CBP “to make sure that enforcement is smart, transparent, targeted and effective.”

The United Nations cites what it says are credible reports that 1 million Muslims held in camps have been put to work in Xinjiang and faith leaders, activist groups and others have said crimes against humanity, including genocide, are taking place.

China denies mistreating Uighurs and says the camps are vocational training centers needed to fight extremism.

The Chinese embassy in Washington said in a statement the forced labor issue was a “political lie” and vowed to take actions to safeguard the rights of its companies.

“The U.S. side resorts to pressure, sanctions and other means to suppress Xinjiang enterprises and undercut Xinjiang’s stability, development and prosperity,” the statement said.

© 2021 Thomson/Reuters. All rights reserved.

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Economy

European Central Bank Calls for Global Regulations on Bitcoin…

President of the European Central Bank Christine Lagarde has called for global regulations on Bitcoin, labeling the cryptocurrency “reprehensible.”

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European Central Bank Calls for Global Regulations on Bitcoin…

ZERO HEDGE

President of the European Central Bank Christine Lagarde has called for global regulations on Bitcoin, labeling the cryptocurrency “reprehensible.”

Lagarde made the comments during a Reuters Next conference earlier today, during which she asserted that Bitcoin was not a currency.

“When you look at the most recent developments upward, and now the recent downward trend … for those who have assumed that it might turn into a currency, terribly sorry but this is an asset and it is a highly speculative asset,” she said.

The former head of the IMF, who was previously found guilty of financial negligence by a French court over a €403 million arbitration deal in favor of businessman Bernard Tapie, went on to accuse Bitcoin of being heavily embroiled in criminal activity.

“(Bitcoin) has conducted some funny business and some interesting and totally reprehensible money laundering activity,” said Lagarde.

The ECB head went on to call for Bitcoin to be regulated by financial authorities.

“There has to be regulation. This has to be applied and agreed upon […] at a global level because if there is an escape that escape will be used,” she said.

Globalists and technocrats have long begrudged Bitcoin because it is decentralized and therefore impossible to come under the control of centralized financial institutions. The cryptocurrency has also provided a refuge for dissidents who have been deplatformed by regular financial services and institutions over their politics.

Bitcoin recently soared to a record high above $41,000 dollars but has since fallen back to around $35,000 dollars.

After the cryptocurrency previously hit a record high of above $17,000 dollars at the end of 2017 it then sank bank to around $3,000, emphasizing the wild volatility of the asset.

However, numerous analysts are predicting that growing debt, record money printing and hyperinflation could see Bitcoin soar into the hundreds of thousands over the next year.

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