Ahead of last night's collapse in cryptocurrencies, Ron Paul warned CNBC viewers that they had become an asset thatrivals the bubble he sees in stocks...
"I think it's going to continue to do exactly what it's doing. It's going higher and it's going lower," he said Tuesday on CNBC's 'Futures Now'.
"We can look at what's happening now, which to me is a climactic end of QEs."
Earlier this week, as Trump's tax reform was finally being voted through Congress, we showed that in a surprising market reaction, total asset returns - those combination of S&P and 30Y Treasurys - saw their biggest two-day drop since last December, a shock which led to one of the biggest declines for risk-parity investors in months.
Last week, Mike Novogratz surprised more than a few market participants by telling CNBC's Fast Money that he was bringing forward the launch date of his crypto hedge fund; today he killed those plans.
On December 12th, Novogratz said he thinks bitcoin could hit $40,000 in 2-3 months. The Galaxy Fund was supposed to launch of December 15th.
http://player.cnbc.com/p/gZWlPC/cnbc_global
Today, Novogratz has shelved plans to launch his fund, warning that:
If you wanted more evidence that Central Banks will stop at nothing to induce inflation, consider that yesterday Bank of Japan stated that it will continue with its QE program and with negative rates for as long as it takes to achieve 2% inflation.
Mind you, Japan’s economy has just posted its SEVENTH straight quarter of growth, having exited its last recession at the beginning of 2016.
Content originally published at iBankCoin.com
Let's be clear. The American market for Bitcoin is an aspirational one; but the true volume is done in Asia. Instead of going through the trouble of setting up shell corporations to launder their money, the Chinese have been using crypto currencies, which was beautifully marketed as some sort of rebellious form of capitalism -- creating millions of bedroom billionaires.
All of that might be ending soon, thanks in part of President Trump.