All the latest news surrounding Bitcoin and related developments with Florin21 via the 21 Roundup.
Federal Reserve Chair Powell – “the U.S. is on an unsustainable fiscal path”
Federal Reserve Chair Jerome Powell said – “The U.S. federal government’s on an unsustainable fiscal path. And that just means that the debt is growing faster than the economy. So, it is unsustainable. I don’t think that’s at all controversial,”
The U.S. national debt topped $34 trillion, just over three months after surpassing the $33 trillion mark, according to data released by the U.S. Treasury. The speed at which the debt is increasing is very worrying.
Powell went on to double down on his position that rate cuts were off the table for their March announcement.
“I would say, and I did say yesterday, that I think it’s not likely that this committee will reach that level of confidence in time for the March meeting, which is in seven weeks,” Powell said.
“The kinds of things that would make us want to move sooner would be if we saw weakness in the labour market or if we saw inflation really persuasively coming down,” he added.
This strongly suggests that the Fed is waiting for further job losses and a sustained period of low inflation before considering lowering interest rates. Is it likely that we will see more bank failures before then, given their substantial unrealized losses?
ARK Invest releases latest annual research report
ARK Invest latest annual research report suggests that institutional portfolios aiming for maximized risk-adjusted returns should have allocated 19.4% to Bitcoin in 2023.
They go on to say “Bitcoin’s volatility can obfuscate its long-term returns. While significant appreciation or
depreciation can occur over the short term, a long term investment horizon has been key to investing
in bitcoin.”
Highlighted in the report also is the fact that investors who bought and held bitcoin for at least 5 years have profited, no matter when they made their purchases. So the question is not when to buy, but rather how long to hold for.
Business owners and investors with no Bitcoin exposure: it’s time to ask “why?” and start exploring. Florin21 can help you.
Blackrock’s iShares Bitcoin ETF hits $3bil in assets
Blackrock’s iShares Bitcoin Trust hits $3bil in assets. That’s over $3bil in 3 weeks and puts it in the top 10% of *all* ETFs by assets. They did this in 3 weeks.
While Blackrock and the other new ETF inflows look great we can also see that Grayscale outflows seem to be trending down. Although the significant outflows have subsided from their peak of $641 million, GBTC continues to experience daily outflows of around $200 million. While these outflows have plateaued, they haven’t yet stopped completely.
What happens when these outflows stop? Can the demand for Bitcoin be met after the halving in April?
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