• Trump administration plans to strip some 200,000 Salvadorans in the US of temporary protected status is likely to be a blow to the economies of both El Salvador and the US.
• El Salvador will struggle to absorb thousands of returnees, who may displace current jobholders there and in turn cause more migration to the US.
• In the US, employers face expenses related to laying off TPS holders as well as the prospect of being unable to replace those workers.

The Trump administration announced earlier this month it will end temporary protected status for some 200,000 immigrants from El Salvador living in the US.

The administration cast the move as a corrective for a TPS policy it said had been abused, and it comes as as part of President Donald Trump's effort to restrict legal and illegal immigration. The president has said this would preserve jobs and raise wages — claims that are widely disputed.

Temporary Protected Status for Salvadorans will not expire until September 2019, giving people with that status in the US 18 months to apply for a new immigration status or leave the country voluntarily.

But during implimentation and afterward, uprooting thousands of Salvadorans and their families is likely to create drag on the economy in US and in El Salvador.

'Security is still bad. The economy is bad. Corruption is bad'

The Central American country, home to more than 6 million people, has been wracked by violence and is struggling economically.

"El Salvador's economy is not very strong. Its [GDP is] growing roughly 2.5% a year," Mike Allison, a political-science professor at the University of Scranton, told Business Insider. "Unemployment's high. Jobs aren’t well-paying. There's very few protections for workers."

Salvadorans depend heavily on remittances — 382,734 households received them in 2016, according to a government survey, and 97% are sent from the US. The more than $4.5 billion in remittances received in 2016 amounted were used to pay for things like rent, school fees and transportation costs, and utility bills.

Any decline in remittances caused by deportations or removals from the US would reduce consumption and increase poverty in El Salvador, Carmen Aida Lazo, of ESEN University in San Salvador, told The Economist.

Many of the conditions created by the 2001 earthquake that first prompted the TPS designation for immigrants from El Salvador haven't really improved, Allison said.

"Security is still bad. The economy is bad. Corruption is bad. What's helped the country sort of stay afloat has been the billions of dollars sent back each year by Salvadorans living abroad," he told Business Insider.

"The situation in El Salvador today probably will not be any better in 18 months. If anything it'll probably get a little worse."

The absence of Salvadorans in the US sending money back to El Salvador would likely be compounded by the strain their return would put on the government and the local economy.

The official unemployment rate in El Salvador is 7%, but more than 40% of workers are underemployed, and about 66% of them work in the informal sector. The country sees 60,000 people enter the workforce every year, but its economy only creates 11,000 jobs, according to think tank Fusades.

"So the thought that these people are going to be successfully absorbed by the Salvadoran economy is fantastical," Geoff Thale, program director at the Washington Office on Latin America, told Business Insider.

"Whatever the administration says about conditions in El Salvador [having] improved — I don't actually think they have — but it's clear to me that even if they were to have improved, they haven't improved to the condition where the country can accept back that number of people and absorb them into the workforce," Thale said.

'What they'll probably do is displace other Salvadorans'

The US and Salvadoran governments have an agreement that limits the number of deportation flights to eight a week, each carrying no more than 135 people.

Under the deal, the US can't send more than 56,000 people back to El Salvador each year. A significant increase in the number returnees would further strain the limited resources the government and civil-society groups have to assist people arriving in the country, many of whom haven't been there in more than a decade.

Salvadoran TPS holders in the US are typically in their 40s and are used to wages higher than are offered in El Salvador, and many who return are likely to struggle to find work and settle there. Ones who do enter the labor force in El Salvador may take jobs that are already filled, Thale said.

"While they occupy relative low-skilled jobs in the United States, in El Salvador they would look like mostly bilingual, relatively skilled workers," Thale told Business Insider.

"What they'll probably do is displace other Salvadorans, and those people, who are less skilled and ... pushed out of the workforce in a terrible economy with ... a lot of crime and violence, will probably emigrate to the United States."

The government in El Salvador is looking for a way to relieve the pressure. It is discussing a deal with Qatar under which migrants from the Central American country who lose the right to live in the US could live and work temporarily in the Middle Eastern country.

El Salvador's foreign minister said Salvadorans in Qatar could work in engineering, aircraft maintenance, construction, and agriculture.

Salvadorans removed from the US may also find work at call centers, which have sprung up in El Salvador in recent years. With few local English speakers in the country, returnees with language skills would stand out. While call centers typically offer higher wages than other local industries, they have been criticized for creating high-pressure work environments with few worker protections.

'You've removed thousands of fully employed people'

A typical Salvadoran TPS recipient in the US has been in the country for 21 years. Ninety percent of them have jobs, and one-third own homes.

Many, if not most, of them are likely to try to stay in the country, either by securing a new immigration status or by staying without authorization. But without legal status, the role they play in the US economy, and the protections they have while working, will be stripped away.

"I think they're going to wind up living in illegality here, which will make them more exposed to abuse by employers, make them live more in fear, make them far less likely to cooperate with local police," Thale told Business Insider. "In those communities, in terms of employment, in terms of schools, in terms of people paying their mortgages, there will be economic ripple effects."

Immigrants in the US — Haitians and others from Central America, in particular — often make their living in the US in the service industry, doing jobs in industries like construction, food service, and child and elderly care.

"If you get rid of 26% of my employees, I guess I’m going to have to terminate some of the contracts," Victor Moran, the chief executive of Total Quality, a janitorial services company in the Washington area, told The New York Times.

Moran said he wasn't willing to break the law to keep those employees, and the government's recent nationwide sweep of 7-11 convenience stores indicates the measures it will take to restrict the hiring of undocumented workers.

"There are no Americans out there to take the jobs," Mark Drury, a vice president at a Washington-based plumbing, heating, and cooling business, told The Times

Drury said his firm would have to lay off its 14 Salvadoran workers and was worried about what would happen to some 30 employees who are in the US under Deferred Action for Childhood Arrivals, which protects immigrants brought to the US as children from deportation.

Businesses in Houston have expressed concern about immigration restrictions inhibiting the effort to rebuild after Hurricane Harvey.

A study by the Immigrant Legal Resource Center found that stripping Haitians, Salvadorans, and Hondurans — who may see their TPS status rescinded this summer — would, over 10 years, deprive Social Security and Medicare of $6.9 billion and shrink GDP by $45.2 billion.

The wholesale firing of TPS holders from those three countries would hit US employers with almost a billion dollars in turnover costs, and deporting them would cost the US $3.1 billion, with an outsize effect on metropolitan areas in Florida, New York, California, Texas, Maryland, and Virginia, according to the report.

"This policy [is] probably going to worsen poverty and the conditions in El Salvador, but it's also going to do the same thing in the United States," Allison, of the University of Scranton, told Business Insider. "If you end up deporting or taking away the legal status of 200,000 people, they're going to lose the good-paying jobs that they have right now."

"You've removed thousands of fully employed people," Allison said. "And now their kids won't be able to rely upon the income form their parents, which is going to force, probably, many of them into poverty."

SEE ALSO: Trump's latest move on immigration will likely empower MS-13 — a group he's vowed to 'destroy'

Join the conversation about this story »

NOW WATCH: Animated map shows the history of immigration to the US

This article originally appeared on Bitcoin Magazine.

• As part of tax reform, pharmaceutical and biotech companies are likely to bring back billions in cash to the US.
• What these companies do with that cash remains to be seen, but there's a lot of anticipation for big-ticket deals, with those with the most money overseas expected to lead the pack. 
• Pfizer, Merck, Gilead, and Amgen have tens of billions to repatriate that could be put to use through mergers and acquisitions.  

There's a lot of excitement around the potential for tax reform in the US to spark mergers and acquisitions within the pharmaceutical industry. 

Along with technology, pharma is one of the industries with the most cash overseas that will be eligible for repatriation under the new tax plan, which will give companies a lot more flexibility to spend billions. 

Paul Biondi, head of business development at Bristol-Myers Squibb, told Business Insider that tax reform in the US will have a positive impact. 

"Business development is one of our primary strategies for capital allocation, and so to have an ability to tap into a stronger balance sheet absolutely is a good thing for us," Biondi said. 

The changes that tax reform brings through a lower tax rate and repatriated cash doesn't necessarily mean there's going to be an across-the-board flood of new deals, especially as some major pharmaceutical companies aren't based in the US to begin with. 

"You can't just say 'OK, it's going to trigger M&A in pharma,' I think it's going to be very company specific," GlaxoSmithKline US pharmaceuticals president Jack Bailey told Business Insider.

But one metric to look at could be companies with a lot of cash outside the US. According to a December 2017 Credit Suisse note, Merck has 80-90% of its total cash overseas, while Johnson & Johnson and Pfizer have nearly all of their cash based overseas as well. 

From most to least, here's the amount of cash drugmakers have to repatriate to the US as part of tax reform. 

• Amgen - $39 billion
• Gilead - $32 billion
• Pfizer - $22 billion
• Merck - $20 billion
• J&J - $14 billion
• AbbVie - $10 billion
• Lilly - $9 billion
• BMS - $9 billion
• Celgene - $9 billion
• Biogen - $4 billion

We're already seeing some action, at least from one company with overseas cash. On January 7, Celgene acquired Impact Biosciences in a $7 billion deal and reportedly is in talks to acquire Juno Therapeutics. 

Eli Lilly chief financial officer Josh Smiley told Business Insider that the company has about $9 billion in cash overseas that will be repatriated over the next few years. While an estimated $3.5 billion will be paid in taxes to the US, the remaining money will ideally be used to build up the treatments Lilly has in the works. 

"We'd love to use the cash to buy and partner to expand our pipeline," Smiley said. Ultimately, the hope is to have one-third of Lilly's pipeline of medicines that are in development coming from outside the company.

If drugmakers don't choose to use the cash to build out their pipelines, the cash could be used for other purposes, such as internal investments, dividends, or paying down debt. 

SEE ALSO: Big pharma is getting ready to spend tax reform dollars on big deals

Join the conversation about this story »

NOW WATCH: A crypto expert explains the difference between the two largest cryptocurrencies in the world: bitcoin and Ethereum

The first bitcoin futures contract listed by Cboe has expired, a move that came amid a turbulent day of trading that saw the cryptocurrency's price drop below $10,000.

This article originally appeared on Bitcoin Magazine.

• Inflationary pressures from the tax overhaul and fiscal stimulus will be the surprise result in 2018, says Brent Schutte, the chief investment strategist for Northwestern Mutual Wealth Management Company, which manages $221.8 billion in assets.
• It is incorrect to assume the link between measures of predicted inflation and actual inflation is broken, Schutte says. 
• "Inflation is a lagging indicator," he said about the current inflation levels, which he added are a reflection of 12 to 18 months ago when the global economy was recovering from a weak period of growth caused by a supply-drive oil war.

What a difference a year makes. It is hard to recall, but at the turn of the calendar to 2017, investors were debating whether stronger economic growth would ever return, largely because it had been so weak for much of late 2015 and 2016. Even as consumer and business confidence surveys were pointing to a brighter future, many investors were losing patience waiting for them to be reflected in strong “actual” economic growth. Indeed, the debate on Wall Street became whether the historical link between “soft” survey or feelings-based data and actual “hard” bean-counting economic growth (gross domestic product) was broken.

We expressed our belief that soft data surveys had earned the right to be called leading economic indicators because they had historically led the hard data. Put more simply, before you “actually” act, you must “feel” confident first. And, right on cue, economic growth over the past three quarters has accelerated. After back-to-back 3% plus quarter-over-quarter real economic growth in the second and third quarters, the United States economy looks set to post 3% plus fourth-quarter growth. This would mark the first time since late 2004 that the U.S. economy has posted three consecutive 3% plus quarters in a row.

And this growth expansion has occurred before tax reform has taken hold. While much of the current tax reform chatter revolves around the intermediate- to longer-term outcome, we believe that argument is highly subjective because the economic models that are being used to moderate the discussion have high margins of error. Allow us to focus on the more precise, nearer-term effects of this bill. Put simply, it is fiscal stimulus. And this stimulus is occurring at a time when future indicators of growth already look rather robust.

If the return of stronger economic growth was the big surprise story of 2017, after a period of weakness in the prior years led many to doubt its return, we believe the return of in inflationary pressures that will eventually result from this growth will become the big surprise story of 2018 – again, against a substantial wall of doubt.

What are inflation indicators telling us?

While many economic variables behaved consistently with rising economic growth in 2017, the one variable that defied logic was inflation. Indeed, after spending 2016 recovering from its oil/Commodities-induced fall, surprisingly, core measures of consumer price inflation (CPI) have fallen for much of 2017. This has led many to question whether inflation is a relic of the past and to posit that this time is different.

Forgive us if we are having a bit of deja vu. We believe this debate feels a lot like last year’s economic growth argument. We note that many leading measures of inflation are currently pointing to a high likelihood of rising price pressures in 2018. However, due to the lack of its arrival in the actual hard data measures of inflation (think actual CPI), many are growing impatient and suggesting the link is broken. Allow us to, once again, express our disagreement.

Inflation is a lagging indicator. Today’s overall inflation levels tell a story of what happened 12 to 18 months ago, a time when the global economy was just emerging from a weak period of growth caused by a supply-driven oil war that knocked manufacturing and trade into near recession-like conditions. Now with U.S. and global manufacturing rapidly accelerating, global trade humming and the U.S. and global consumer remaining strong, we believe that future inflation looks set to move higher.

Inflation is a volatile data series and economists are interested in separating shorter-term noise from the intermediate-term trend. With this goal in mind, the Federal Reserve Bank of New York has built an Underlying Inflation Gauge (UIG) that contains many leading indicators of trend inflation. And despite the overall declining inflation in 2017, the UIG continued to moved higher throughout the year and rose to a post Great Recession high. Based upon its past relationship that shows it leads core CPI – the UIG points to rising future inflation in 2018.

Is this cycle unique?

While many continue to state that this expansion is extremely unique, we believe they are ignoring history. Indeed, a review of the 1960s reveals many similarities to today’s environment. Most importantly, inflation in the early 1960s was extremely low. From December 1958 to February 1966 on every measured month, CPI was below 2%. The Federal Reserve initially responded to this with low short-term interest rates, and then in 1961 they embarked on Operation Twist (quantitative easing) with a goal of pushing long-term rates low.

As a result, U.S. bond yields resided at low levels, and stocks were priced at high price-to-earnings multiples. In 1965, realized equity market volatility hit all-time low levels. Further reflecting complacency, according to a research paper written by Harvard Professor Paul Schmelzing, “Observers in 1965 were trapped in a lower for longer inflation rate consensus belief.”

If that sounds similar, it should. For much of the past eight years, the Fed has missed its 2% inflation target. Responding to this, the Fed has held down short-term interest rates and performed numerous iterations of quantitative easing, including Operation Twist II, to push down long-term rates. Thus, bond yields reside at low levels (on some measures not seen since the early 1960s), and equity markets trade at high price-to-earnings multiples. Realized equity market volatility during the fourth quarter hit the lowest level since 1965. Furthermore, the difference between the high and low 10-year Treasury yield was the narrowest in 2017 in any given year going back to 1965. And importantly, the current conventional wisdom, almost to the point of absolute certainty, remains lower for longer with regard to inflation and interest rates.

What happened next, you may ask? Inflation finally arrived in early 1966. This caused a bond market hiccup that led to a short but sharp equity market correction. Indeed, after a 20% drop during the summer of 1966, the equity market shifted course and recovered all its losses by the spring of 1967. And much as we would forecast today, the equity market kept making new highs until the summer of 1969, right before the economic cycle finally drew to a close in early 1970 with a recession.

The bottomline

We continue to have a relatively positive outlook in the intermediate term because we continue to believe the U.S. economy has further room to run. However, we believe conditions are ripe for the long-awaited bond market correction in 2018. And because all asset classes trade on a relative valuation basis, we worry that this will likely cause a stock market correction. In other words, the reason U.S. stocks are currently expensive is because bond yields are so low. We worry that if bond yields rise, equity markets will likely reprice lower as valuations contract. Putting it in the context of our title, we believe that today is more akin to 1966 (not 1969), and we would encourage investors to look through any potential market correction.

However, we reiterate our call that portfolios should be broadly diversified as we move nearer to the end of this economic and market cycle. We believe that this mix should include Commodities as a (increasing) part of that mix. Why? Because they historically have a high correlation with inflation and may serve as an important asset class to help ballast any potential stock and bond market decline.

Brent Schutte is the chief investment strategist for Northwestern Mutual Wealth Management Company.

SEE ALSO: The massive amounts of electricity required to mine bitcoin could benefit these 5 stocks, Morgan Stanley says

Join the conversation about this story »

NOW WATCH: Here's what losing weight does to your body and brain

• Airbus may shut down the A380 superjumbo program without an additional order from Emirates.
• However, Airbus failed to secure an Emirates order in November because the airplane maker couldn't commit to the A380. 
• Airbus needs at least one major order to keep its A380 production slots filled for the next decade. 

Rumors of the A380's demise have been swirling since Airbus failed to secure a highly-anticipated order for the plane from Emirates at the Dubai Air Show in November.

The Emirates order was supposed to end the A380 pr0gram's prolonged sales drought in which Airbus has not been able to land a major airline order for the superjumbo since Emirates' last order in 2013.  

Emirates isn't just the A380's largest customer, at this point, Emirates is the A380's only customer of consequence. It's the only airline with enough demand for the A380 to keep the plane's production lines moving for the next decade or so at a rate of six planes a year.

It's something Airbus knows all too well. 

Airbus sales' outgoing sales chief, John Leahy indicated that without additional orders from the Emirates, the possibility of the company shuttering its most high-profile program is very real.

However, the big hangup that prevented Airbus from closing the deal in November wasn't Emirates' lack of interest in the plane. Instead, it was Airbus' unwillingness to commit to the A380 program in the long run.

Emirates has openly stated that the airline would like to order more A380s.

"So they may be making some internal decisions as to what they may or may not do, I'm not a party to those, but the view is that at Emirates, we'd like to see some more in the fleet," Emirates Airline president Sir Tim Clark told Business Insider.

"I don't know if they've given up (on the A380)," Clark added. "It's a work in progress and we're trying to get them across the line."

Of the 317 orders Airbus has for the plane, 142 have come from the Emirates. Over the years, Emirates has also supplied Airbus with the engineering, design, and maintenance input that helped streamline the A380 program.

Even without additional orders, Airbus has 95 outstanding orders for the A380, 42 of which belong to Emirates. 

"We have 101 (A380s in the fleet) at the moment and we have 41 on order," the Emirates boss said. "So they've still got to produce these airplanes. It's all very well to say they are going to end the program but 41 aircraft is quite a lot of that type."

"We certainly believe there's a future for it," Clark said. "It's very useful for us, it's our flagship, it has great internal product, it has a huge following, and we've just introduced new enclosed suites on our Boeing 777s and we'll do the same on the A380."

At this point, Emirates wants to buy more A380s and Airbus wants Emirates to buy more of the planes. And yet Emirates doesn't have the planes it wants and Airbus doesn't have the orders it needs. 

SEE ALSO: The incredible history of the Airbus A380 superjumbo jet that went from airline status symbol to reject in just 10 years

FOLLOW US: on Facebook for more car and transportation content!

Join the conversation about this story »

NOW WATCH: A crypto expert explains the difference between the two largest cryptocurrencies in the world: bitcoin and Ethereum

• Netflix is well-positioned to lead the competition because it is a master of both content and technology, a UBS analyst said.
• Its increasing subscriber growth, loyal fan base, and original content are likely to sustain the company's growth trajectory.
• View Netflix's real time stock price here.

While competition for the hearts of video streaming viewers is expected to heat up, Netflix will remain on top, according to UBS analyst Eric Sheridan.

Even though a growing number of video streaming services are likely to enter the fray, "we believe Netflix will likely remain the leader due to its scale, excellent execution, brand, proven technology & content expertise, singular product focus, and lead in building its own exclusive original content library," Sheridan said.

Sheridan raised his price target to $250 per share from $221.66.

Netflix is a master of both content and technology, which will help it sustain its subscription growth and keep loyal customers satisfied, he said.

Based on UBS's estimates, Netflix subscription growth is expected to keep rising, particularly as the company invests in original content, expands its overseas local content, and adds more to its selection that will attract international subscribers.

Netflix raised its US subscription prices in October, which had no material effect on its subscription growth. Sheridan notes that this "can be viewed as supportive of the platform's pricing power." Sheridan reasons that the more subscribers and views Netflix can attract, the higher potential there will be for increased average revenue per user and overall revenue.

Sheridan pointed out the strength of Netflix's original content, particularly the widely popular "Stranger Things" and "13 Reasons Why." Spending on original content can bring in more subscribers and position "Netflix to sustain its clear global leadership in the emerging online video subscription business." 

Netflix has its share of bulls and bears on Wall Street. Many of its detractors see rising competition as a threat. No less a heavy hitter than Disney has entered the scene by acquiring a video streaming company and parts of 21st Century Fox.

Yet Macquarie analyst Tim Nollen said the company is "miles ahead of its peers," as it chooses to focus on subscriptions over advertising, and offers scaled distribution with a growing international presence. 

Netflix's stock is trading at $218.28 a share and is up 8.58% for the year.

The company is expected to report its fourth-quarter results on Jan. 22. 

Read more about the reasons why one analyst thinks Netflix has room to grow.

SEE ALSO: Netflix still has a ton of room to grow — even with Disney in the ring

Join the conversation about this story »

NOW WATCH: Bitcoin can be a bubble and still change the world

The post Portuguese Consumer Watchdog Wants Bitcoin Investors Taxed appeared first on CCN

At a time in which the cryptocurrency ecosystem endures a significant correction as bitcoin dips below the $10,000 mark, Portuguese consumer protection association DECO wants the government to tax cryptocurrency investors. According to local publication Sábado, the organization sent the Ministry of Finance, and the European commissioner in charge of consumer defense a proposal to

The post Portuguese Consumer Watchdog Wants Bitcoin Investors Taxed appeared first on CCN

The post Cryptocurrency Adopters Turn to Bitcoin during Market Downturn appeared first on CCN

The dominance index of bitcoin, which calculates the dominance of the cryptocurrency over the global market, has increased over the past 48 hours amidst one of the worst corrections the market has experienced since June 2017. Is Bitcoin Reserve Currency of Crypto Market? Since 2016, upon the emergence of digital tokens and alternative cryptocurrencies, many

The post Cryptocurrency Adopters Turn to Bitcoin during Market Downturn appeared first on CCN

This article originally appeared on Bitcoin Magazine.

• Flatiron Health will be leaving the Flatiron neighborhood in New York in spring 2018.
• The $1.2 billion company is moving into a 108,000 square-foot space at One SoHo Square, a space that's almost twice the size of its current office at 250 Fifth Ave. 
• Along with the move, Flatiron will get $6 million in performance-based tax credits. 

Flatiron Health, a New York-based healthcare technology startup, is moving. 

The $1.2 billion company is relocating its headquarters in spring 2018 from the Flatiron neighborhood to One SoHo Square, a building that's also home to Warby Parker and Glossier. The 108,000 square-foot space is almost twice the size of Flatiron's current office. 

As part of the move, Flatiron will get $6 million in performance-based tax credits and has plans to create more than 300 jobs over the next five years. 

"Companies like Flatiron Health create quality jobs and spur rapid advancement  in New York's growing healthcare and technology industries," Empire State Development CEO Howard Zemsky said in a statement. "Flatiron's expansion will broaden our understanding of cancer research and patient care and support the state’s cutting edge life sciences sector."

Flatiron was represented by real estate brokers at Savills Studley in the deal, while the building's owners were represented by Newmark Knight Frank represented the building's owners Steller Management and Imperium Capital.

Flatiron uses technology to collect clinical data from cancer patients.With that information, such as details on what medications patients have taken and how they have responded to them over the course of treatment, the hope is that healthcare professionals can have a better idea of how cancer drugs work in the "real world" in hospitals and cancer centers as opposed to during clinical trials. The company has raised more than $300 million from investors including GV and the pharmaceutical giant Roche.

"The move to the new office — almost double our current size — gives us the much needed flexibility to grow our team working to accelerate cancer research in the months and years to come," Flatiron CEO Nat Turner said in a news release. 

SEE ALSO: The billion-dollar startups revolutionizing healthcare you should be watching in 2018

Join the conversation about this story »

NOW WATCH: A crypto expert explains the difference between the two largest cryptocurrencies in the world: bitcoin and Ethereum

This article originally appeared on Bitcoin Magazine.

A new analysis by Goldman Sachs technician Sheba Jafari released a new paper claiming bitcoin could recover just below $10,000.

• The rapid crash in bitcoin challenges the notion that it's a stable store of value, and raises concerns about possible spillover into other markets. 
• The effects of bitcoin and other cryptocurrencies on broader markets could rise if they become more integrated into Wall Street machinery, analysts say.
• The crash, which took bitcoin prices to below $10,000 after having reached a peak near $20,000, shows the market's "explosively volatile and unpredictable" nature.

US financial regulators may have just caught a major break when it comes to overseeing the roughshod bitcoin market.

It looks like regulators, particularly in South Korea and China, are set to clamp down on cryptocurrencies, a move that has triggered a reversal in the stratospheric rally in bitcoin this week, pushing its price, which peaked at nearly $20,000, below $10,000.

The consensus for now is that bitcoin is too divorced from the traditional banking system to have any ripples on financial stability, although traders warn that could change in the future as Wall Street seeks to own a bigger slice of the digital payments industry.

“If the trading in the futures had gotten some momentum then you would have a link with the real world,” Andrew Brenner, head of international fixed income securities at NatAlliance Securities, told Business Insider.

Bitcoin futures began trading on Cboe Global Markets, the Chicago-based exchange group, in December.

"But this collapse is early without many overlapping positions. So for now" there are no systemic risks, Brenner said.

The latest sharp downturn was set off by renewed regulatory scrutiny throughout Asia, including in South Korea, Japan and China. And according to Lukman Otunuga, Research Analyst at FXTM, "the sharp depreciation witnessed in bitcoin should remind investors on how explosively volatile and unpredictable the cryptocurrency can be."

That could dampen some of the enthusiasm for cryptocurrencies evident both among the Wall Street crowd, and among regular investors. 

It's not that US regulators have been silent on the matter. Securities and Exchange Commission Chairman James Clayton warned about the risks of "initial coin offerings" in December, noting they are not registered with the SEC and take place outside the existing regulatory structure. 

Also last month, J. Christopher Giancarlo, chairman of the Commodity Futures Trading Commission, described bitcoin as "a commodity unlike any the Commission has dealt with in the past."

"The relatively nascent underlying cash markets and exchanges for bitcoin remain largely unregulated markets over which the CFTC has limited statutory authority," he said.

And while the Fed has been hands-off role to date, top Fed officials think it’s increasingly inevitable that bank supervisors will have to get a greater handle on the issue of digital transaction systems like Bitcoin.

"The new issue now for the next 10 years is going to be fintech, and how fintech is going to affect financial intermediation in the US," St. Louis Fed President James Bullard told Business Insider in an interview late last year. "And if you go out to Silicon Valley, all the discussion is all about how can we strip the profits from the big firms."

Asked about bitcoin a number of times during her December press conference, Federal Reserve Chair Janet Yellen described bitcoin as "a highly speculative asset" that "plays a very small role in the payments system," adding it is not a "stable store of legal tender."

Incoming Fed Chair Jerome Powell has also weighed in on the matter, arguing that "innovation not come at the cost of a safe and secure payment system that retains the confidence of its end users."

He added, in an October speech, that "fintech firms and banks must each play a role in assuring that enhancements to convenience and speed do not undermine safety and security."

Join the conversation about this story »

NOW WATCH: Fidelity sector expert: Buy stocks that are sensitive to the economy

• The rapid crash in bitcoin challenges the notion that it's a stable store of value, and raises concerns about possible spillover into other markets. 
• The effects of bitcoin and other cryptocurrencies on broader markets could rise if they become more integrated into Wall Street machinery, analysts say.
• The crash, which took bitcoin prices to below $10,000 after having reached a peak near $20,000, shows the market's "explosively volatile and unpredictable" nature.

US financial regulators may have just caught a major break when it comes to overseeing the roughshod bitcoin market.

It looks like regulators, particularly in South Korea and China, are set to clamp down on cryptocurrencies, a move that has triggered a reversal in the stratospheric rally in bitcoin this week, pushing its price, which peaked at nearly $20,000, below $10,000.

The consensus for now is that bitcoin is too divorced from the traditional banking system to have any ripples on financial stability, although traders warn that could change in the future as Wall Street seeks to own a bigger slice of the digital payments industry.

“If the trading in the futures had gotten some momentum then you would have a link with the real world,” Andrew Brenner, head of international fixed income securities at NatAlliance Securities, told Business Insider.

Bitcoin futures began trading on Cboe Global Markets, the Chicago-based exchange group, in December.

"But this collapse is early without many overlapping positions. So for now" there are no systemic risks, Brenner said.

The latest sharp downturn was set off by renewed regulatory scrutiny throughout Asia, including in South Korea, Japan and China. And according to Lukman Otunuga, Research Analyst at FXTM, "the sharp depreciation witnessed in bitcoin should remind investors on how explosively volatile and unpredictable the cryptocurrency can be."

That could dampen some of the enthusiasm for cryptocurrencies evident both among the Wall Street crowd, and among regular investors. 

It's not that US regulators have been silent on the matter. Securities and Exchange Commission Chairman James Clayton warned about the risks of "initial coin offerings" in December, noting they are not registered with the SEC and take place outside the existing regulatory structure. 

Also last month, J. Christopher Giancarlo, chairman of the Commodity Futures Trading Commission, described bitcoin as "a commodity unlike any the Commission has dealt with in the past."

"The relatively nascent underlying cash markets and exchanges for bitcoin remain largely unregulated markets over which the CFTC has limited statutory authority," he said.

And while the Fed has been hands-off role to date, top Fed officials think it’s increasingly inevitable that bank supervisors will have to get a greater handle on the issue of digital transaction systems like Bitcoin.

"The new issue now for the next 10 years is going to be fintech, and how fintech is going to affect financial intermediation in the US," St. Louis Fed President James Bullard told Business Insider in an interview late last year. "And if you go out to Silicon Valley, all the discussion is all about how can we strip the profits from the big firms."

Asked about bitcoin a number of times during her December press conference, Federal Reserve Chair Janet Yellen described bitcoin as "a highly speculative asset" that "plays a very small role in the payments system," adding it is not a "stable store of legal tender."

Incoming Fed Chair Jerome Powell has also weighed in on the matter, arguing that "innovation not come at the cost of a safe and secure payment system that retains the confidence of its end users."

He added, in an October speech, that "fintech firms and banks must each play a role in assuring that enhancements to convenience and speed do not undermine safety and security."

Join the conversation about this story »

NOW WATCH: Fidelity sector expert: Buy stocks that are sensitive to the economy

• The former assistant of Goldman Sachs co-president David Solomon stands accused of stealing more than $1.2 million of wine from his employer.
• The stolen wine most notably included seven bottles from the French estate Domaine de la Romanee-Conti, widely considered "among the best, most expensive and rarest wines in the world," according to the indictment.

Goldman Sachs co-president David Solomon has allegedly been bilked out of more than $1.2 million of wine by his own personal assistant, according to a report from Chris Dolmetsch of Bloomberg News.

Nicolas De-Meyer was named as the person accused of the theft in an indictment that was unsealed on Wednesday. It says that De-Meyer worked for an "individual who collects rare and expensive wine." Bloomberg reported that individual was Solomon. 

De-Meyer is accused of stealing hundreds of bottles from Solomon's massive collection. Most notably, the heist included seven bottles from the French estate Domaine de la Romanee-Conti, widely considered "among the best, most expensive and rarest wines in the world," according to the indictment, which was reviewed by Bloomberg. 

The alleged perpetrator worked for Solomon from 2008 to November 2016, and the thefts took place from 2014 to around October 2016, according to prosecutors.

De-Meyer, whose responsibilities included taking wine delivered to Solomon's Manhattan residence and transporting it to his cellar in East Hampton, is accused of using the alias "Mark Miller" to sell bottles to a wine dealer located in North Carolina. 

Read the full story on Bloomberg here.

SEE ALSO: We crunched the numbers to find the one stock set to get the biggest boost from Trump tax reform

Join the conversation about this story »

NOW WATCH: Bitcoin can be a bubble and still change the world

Welcome to Finance Insider, Business Insider's summary of the top stories of the past 24 hours. Sign up here to get the best of Business Insider delivered direct to your inbox.

Goldman Sachs and Bank of America Merrill Lynch both reported fourth-quarter earnings on Wednesday, surpassing Wall Street's expectations. 

At Goldman Sachs, adjusted earnings came in at $5.68 a share. Wall Street analysts had been expecting adjusted earnings of $4.90 a share. That was despite a historically bad quarter in fixed-income trading.

Bank of America Merrill Lynch meanwhile beat expectations with adjusted earnings of $0.47 a share, ahead of the $0.45 a share expected. Both banks took a hit on loans related to Steinhoff International.

In markets news, we crunched the numbers to find the one stock set to get the biggest boost from Trump tax reform. One chart explains the stock market's record-breaking explosion. And the chief UK strategist at JPMorgan's $1.7 trillion investment arm revealed her biggest fear for the British economy in 2018.

In deal news, Juno Therapeutics jumped more than 50% after a report that Celgene is interested in buying the cancer drugmaker. If the deal goes through, it'd be the second deal in the past few months for companies working on treatments that use the body's immune cells to fight cancer, following Gilead's acquisition of Kite Pharma. 

The cryptocurrency sell-off is now being called a "bloodbath" by commentators as it enters a third straight day of declines. Here are all of the theories explaining the crash. 

Lastly, here are the coolest things we saw at the Detroit auto show.

Join the conversation about this story »

NOW WATCH: A crypto expert explains the difference between the two largest cryptocurrencies in the world: bitcoin and Ethereum

Welcome to Crypto Insider, Business Insider’s roundup of all the bitcoin and cryptocurrency news you need to know today. Sign up here to get this email delivered direct to your inbox.

The cryptocurrency sell-off is now being called a "bloodbath" by commentators as it enters a third straight day of declines. Here are all of the theories explaining the crash. 

Here are the current standings as of midday Wednesday:

• Bitcoin (BTC): $10,309 (-9.1%)
• Ethereum (ETH): $904 (-15.0%)
• Ripple (XRP): $1.04 (-9.5%)
• Bitcoin Cash (BCC): $1,581 (-10.4%)
• Litecoin (LTC): $170 (-9.1%)

What's happening:

SEE ALSO: A popular bitcoin stock announced a 91-for-1 split that could make it more accessible to the masses

Join the conversation about this story »

NOW WATCH: PAUL KRUGMAN: Trump can't take credit for the soaring stock market

Welcome to Crypto Insider, Business Insider’s roundup of all the bitcoin and cryptocurrency news you need to know today. Sign up here to get this email delivered direct to your inbox.

The cryptocurrency sell-off is now being called a "bloodbath" by commentators as it enters a third straight day of declines. Here are all of the theories explaining the crash. 

Here are the current standings as of midday Wednesday:

• Bitcoin (BTC): $10,309 (-9.1%)
• Ethereum (ETH): $904 (-15.0%)
• Ripple (XRP): $1.04 (-9.5%)
• Bitcoin Cash (BCC): $1,581 (-10.4%)
• Litecoin (LTC): $170 (-9.1%)

What's happening:

SEE ALSO: A popular bitcoin stock announced a 91-for-1 split that could make it more accessible to the masses

Join the conversation about this story »

NOW WATCH: PAUL KRUGMAN: Trump can't take credit for the soaring stock market

Welcome to Crypto Insider, Business Insider’s roundup of all the bitcoin and cryptocurrency news you need to know today. Sign up here to get this email delivered direct to your inbox.

The cryptocurrency sell-off is now being called a "bloodbath" by commentators as it enters a third straight day of declines. Here are all of the theories explaining the crash. 

Here are the current standings as of midday Wednesday:

• Bitcoin (BTC): $10,309 (-9.1%)
• Ethereum (ETH): $904 (-15.0%)
• Ripple (XRP): $1.04 (-9.5%)
• Bitcoin Cash (BCC): $1,581 (-10.4%)
• Litecoin (LTC): $170 (-9.1%)

What's happening:

SEE ALSO: A popular bitcoin stock announced a 91-for-1 split that could make it more accessible to the masses

Join the conversation about this story »

NOW WATCH: PAUL KRUGMAN: Trump can't take credit for the soaring stock market

Welcome to Crypto Insider, Business Insider’s roundup of all the bitcoin and cryptocurrency news you need to know today. Sign up here to get this email delivered direct to your inbox.

The cryptocurrency sell-off is now being called a "bloodbath" by commentators as it enters a third straight day of declines. Here are all of the theories explaining the crash. 

Here are the current standings as of midday Wednesday:

• Bitcoin (BTC): $10,309 (-9.1%)
• Ethereum (ETH): $904 (-15.0%)
• Ripple (XRP): $1.04 (-9.5%)
• Bitcoin Cash (BCC): $1,581 (-10.4%)
• Litecoin (LTC): $170 (-9.1%)

What's happening:

SEE ALSO: A popular bitcoin stock announced a 91-for-1 split that could make it more accessible to the masses

Join the conversation about this story »

NOW WATCH: How the sale of Qdoba will impact Chipotle's future

Welcome to Crypto Insider, Business Insider’s roundup of all the bitcoin and cryptocurrency news you need to know today. Sign up here to get this email delivered direct to your inbox.

The cryptocurrency sell-off is now being called a "bloodbath" by commentators as it enters a third straight day of declines. Here are all of the theories explaining the crash. 

Here are the current standings as of midday Wednesday:

• Bitcoin (BTC): $10,309 (-9.1%)
• Ethereum (ETH): $904 (-15.0%)
• Ripple (XRP): $1.04 (-9.5%)
• Bitcoin Cash (BCC): $1,581 (-10.4%)
• Litecoin (LTC): $170 (-9.1%)

What's happening:

SEE ALSO: A popular bitcoin stock announced a 91-for-1 split that could make it more accessible to the masses

Join the conversation about this story »

NOW WATCH: How the sale of Qdoba will impact Chipotle's future

Welcome to Crypto Insider, Business Insider’s roundup of all the bitcoin and cryptocurrency news you need to know today. Sign up here to get this email delivered direct to your inbox.

The cryptocurrency sell-off is now being called a "bloodbath" by commentators as it enters a third straight day of declines. Here are all of the theories explaining the crash. 

Here are the current standings as of midday Wednesday:

• Bitcoin (BTC): $10,309 (-9.1%)
• Ethereum (ETH): $904 (-15.0%)
• Ripple (XRP): $1.04 (-9.5%)
• Bitcoin Cash (BCC): $1,581 (-10.4%)
• Litecoin (LTC): $170 (-9.1%)

What's happening:

SEE ALSO: A popular bitcoin stock announced a 91-for-1 split that could make it more accessible to the masses

Join the conversation about this story »

NOW WATCH: How the sale of Qdoba will impact Chipotle's future

• The cryptocurrency market has lost around half of its value since hitting an all-time high above $830 billion earlier this month.
• Joe DiPasquale, the founder of crypto fund of funds BitBull Capital, tells Business Insider this is a market event the crypto world has seen play out over each of the past three years. 

The cryptocurrency markets are shuddering in what some are calling a "cryptocurrency bloodbath," but long-term bitcoin holders will tell you they've seen this before. 

In fact, this is the third year in a row that bitcoin — and the overall market for digital coins — has plunged early in the new year, according to a blog post by Joe DiPasquale, the chief executive officer of crypto fund of funds BitBull Capital. 

DiPasquale calls it "the perennial dip."

"It’s worth pointing out that this is nothing new for experienced crypto investors," DiPasquale wrote. "In fact, it’s become something of an annual tradition." 

In 2016, the cryptocurrency market shed 27% off of a peak above $7.5 billion, DiPasquale illustrated in a chart courtesy of CoinMarketCap.

"It would be 43 grueling days of uncertainty before investors who bought at January’s peak would see green again," DiPasquale wrote. 

Here's how the market fared after the 2016 crash:

In 2017, it took even longer for the crypto markets to recover from a 35% correction that brought the total market capitalization down to $14.38 billion from a high of $22 billion. Those losses were underpinned by anxieties about a crackdown in China. Bitcoin got demolished after China announced it had begun investigating bitcoin exchanges in Beijing and Shanghai on suspicion of market manipulation, money laundering, unauthorized financing, and other issues.

"Again, there was a substantial lull as the markets climbed back to their former glory; a trek that took a total of 50 days to complete, and concluded in mid-February of 2017," according to DiPasquale. 

Eventually, the market climbed to new heights in April after Japan declared bitcoin a legal currency and gave a number of cryptocurrency exchanges licenses to operate in the country. 

Here's how the 2017 crash played out:

On January 7, 2018 the cryptocurrency market reached an all-time high value above $835 billion. At last check, the crypto market is more than 45% lower at $452 billion.

Again, investors are concerned about regulators clamping down. The current slump comes amid reports that Russia could be about to impose stricter regulations on the sector. The Russian news service TASS reported last week that Russian President Vladimir Putin said "legislative regulation will be definitely required in future" for cryptocurrencies.

In Asia, regulators also appear to be clamping down. South Korean regulators were reportedly flirting with a ban on cryptocurrency trading.

Mati Greenspan, an analyst with the trading platform eToro, told Business Insider's Oscar Williams-Grut on Tuesday that volumes from Japan and South Korea had been tailing off in recent days. 

"Now, 9 days later, we are (hopefully) nearing the bottom of the valley, as we exceed 55% losses," he wrote. 

SEE ALSO: 2 blockchain ETFs are launching — but the SEC asked them to take blockchain out of their names

Join the conversation about this story »

NOW WATCH: Netflix is headed for a huge profit milestone in 2018

• All the major cryptocurrencies have dropped significantly in the past two days.
• The Winklevoss twins own about 120,000 coins and have lost about $600 million during the bloodbath.
• Watch the price of bitcoin move in real time here.

Bitcoin, along with its cryptocurrency companions, has dropped massively in the past two days.

For those holding on to their coins for dear life, it's been a loss of roughly 34%. For the Winklevoss twins, who hold an estimated 120,000 bitcoins, that comes to a loss of about $600 million.

The twins, who famously sued Facebook founder Mark Zuckerberg, bought their original bitcoins with part of the $65 million settlement from the case. The coins were worth less than $10 a piece back then.

Now, Bitcoin is trading below $10,000 for the first time since November. The currency has seen a colossal drop after fears of a South Korean crackdown spooked investors on Thursday. The country is reportedly working on a bill that would shut down exchanges in the country.

Russian President Vladimir Putin has also hinted that a crackdown in Russia is on the horizon. The president was reported saying that tighter regulations would be "definitely required" soon.

The Winklevoss bitcoin fortune seemed to top out around $1.3 billion in mid-December. With this week's losses, it would sit closer to $700 million. To be sure, the Winklevoss twins have not publically disclosed the exact number of bitcoins they hold, and the twins could have sold a number of coins to realize their gains. And of course the bulk of their wealth was created by the rapid rise of bitcoin prices. 

Besides holding the digital assets, the Winklevoss twins founded their own bitcoin exchange called Gemini. The exchange worked with Cboe to launch its bitcoin futures contracts in December. The exchange has been plagued by regular outages before and after the launch of the contracts.

Other cryptos were not exempt from what pundits have been calling a bloodbath. Most of the major cryptocurrencies are down by double digits this week.

Track the price of all the major cryptos here.

SEE ALSO: The Winklevoss twins are worth about $1.3 billion in Bitcoin alone

Join the conversation about this story »

NOW WATCH: Fidelity sector expert: Buy stocks that are sensitive to the economy

• Bank of America CEO Brian Moynihan had harsh words for his clients that want to trade bitcoin Wednesday, saying they could buy it elsewhere, but "not at Merrill Lynch."
• On Wednesday, the cryptocurrency tumbled below $10,000 for the first time since November.

As cryptocurrency markets around the world get smoked in what's been called a "bloodbath," Bank of America CEO Brian Moynihan took the time to warn customers about investing in highly volatile bitcoin.

"We have limited our relationships and I think the thing speaks for itself," Moynihan told reporters on a conference call following the bank's fourth-quarter earnings beat. "We’ve basically told people that they could buy it in other accounts, but not at Merrill Lynch. And so it’s just our view that customers should be careful here."

Wall Street's biggest banks have taken differing approaches to bitcoin, which has swung wildly from less than $1,000 to almost $20,000 in the past year. 

When bitcoin futures launches in December, Bank of America Merrill Lynch, Citigroup, and JPMorgan notably did not provide their customers access to the contracts. Advisors employed by Merrill Lynch, Bank of America's wealth management arm, were instructed last month to not hawk Grayscale's Bitcoin Investment Trust, an investment product that seeks to mirror the price of bitcoin, to clients. 

Elsewhere on Wall Street, however, Goldman Sachs has embraced cryptocurrency markets, and was reportedly staffing up a cryptocurrency trading desk to begin work as soon as June 2018. 

Bitcoin plunged below $10,000 Wednesday, and has lost 23% of its value in the last week. You can track the price of cryptocurrencies in real time here>>

SEE ALSO: Sign up to get the most important updates on all things crypto delivered straight to your inbox.

Join the conversation about this story »

NOW WATCH: PAUL KRUGMAN: Trump can't take credit for the soaring stock market

• Upward revisions to S&P 500 profit forecasts have provided crucial fuel for the stock market's ascent to new record highs.
• US equities are surging so much, so quickly, that some Wall Street strategist year-end forecasts have already been surpassed.

It's no coincidence that the stock market's latest batch of record highs has come as corporate earnings season starts in earnest.

That's because upward revisions to profit forecasts have been one of the main drivers of those equity gains. After all, earnings growth has been the undeniable driving force of stock gains throughout much of the 8 1/2-year bull market, and those positively adjusted estimates have given bulls even more of a reason to buy.

At the root of this surge in earnings forecasts is the recently passed GOP tax bill, which Wall Street agrees will boost the bottom lines for many companies. Whether those firms are simply paying a lower tax rate than before, or because they're also getting a repatriation tax holiday, the consensus is that the tax plan will drive profit expansion.

This chart tells you everything you need to know about this dynamic. As S&P 500 forward 12-month earnings-per-share (EPS) forecasts have climbed, so has the level of the benchmark. They've been closely synced since 2015, and have been perhaps more closely linked than ever in recent months.

"Tax reform has only recently started flowing through to consensus numbers," Mike Wilson, Morgan Stanley's chief US equity strategist, wrote in a client note. The chart "confirms this suspicion, showing the vertical jump in next-12-month EPS expectations that took place after December 15."

The stock market has been so red-hot, in fact, that it's already blown through many year-end forecasts made by strategists across Wall Street, despite it still being mid-January. That's caused those same market experts to adjust their estimates higher, a practice that's surely emboldening to bulls.

As of Wednesday, a group of 23 strategists are forecasting that the S&P 500 will finish 2018 at 2,950. That's 6% above current levels, and almost 5% higher than the median estimate just three weeks ago.

"Tax cuts provide the visibility on earnings that markets love," said Wilson. "Our 3,000 bull case looks more likely."

SEE ALSO: We crunched the numbers to find the one stock set to get the biggest boost from Trump tax reform

Join the conversation about this story »

NOW WATCH: THE BOTTOM LINE: Chipotle vs. Qdoba, the bear case on Apple, and diagnosing a bitcoin bubble

• Roku's stock was up after news that it will introduce a suite of new ad measurement tools.
• The tools will allow marketers, TV networks, and media owners to track the effectiveness of their ad campaigns on Roku's platforms.
• The rally was a break from a rough few weeks for the stock after a Morgan Stanley analyst said Roku's valuation was "hard to justify."
• Get the latest Roku stock price here.

Shares of Roku jumped as much as 5.64% on Wednesday after news that the streaming player company will introduce a new ad measurement tracker, named Roku Ad Insights, that would allow brands and agencies to measure how effective their ad campaigns are across Roku's platforms.

As viewers move from traditional broadcast and cable television to streaming services on their desktop or mobile devices, advertisers are looking for ways to reach and receive feedback from viewers who are increasingly cutting the cord.

Roku is offering a suite of tools which measure the effectiveness of ad campaigns, provide insights on cord cutters, and allow marketers to get feedback on their ads through surveys of Roku's audience.

Roku's stock has had a tepid run in the last few weeks after a Morgan Stanley analyst said its valuation was "hard to justify." 

Roku's streaming devices may get a boost from a spat between Google and Amazon. Google removed its popular YouTube app from Amazon streaming devices on Jan. 1 after Amazon refused to carry some of Google's products on its online store. Roku carries both companies' products, including YouTube, which could draw more consumers to its media players.

Roku's stock was trading at $41.23 per share on Wednesday. Its shares were up 75.53% since its IPO in September.

Read more about an email marketing company that wants to follow Roku's footsteps and go public here.

SEE ALSO: The CEO of an email marketing company that sends 1 billion emails every day opens up about what it takes to go public

Join the conversation about this story »

NOW WATCH: The chief global strategist at Charles Schwab says a bitcoin crash won't infect the rest of the market

• Pastéis de Belém in Lisbon is the most reviewed eatery in the world, garnering 10,000 reviews on TripAdvisor in 2017 alone.
• It's famous for its Pastéis de Belém cream cakes.
• The "secret recipe" has not changed since the bakery opened in 1837.

A bakery in Lisbon, Portugal has been named the most reviewed eatery in the world by TripAdvisor — and it will only cost you less than £1 to find out why so many travellers flock to it.

Pastéis de Belém — meaning Cake of Belém, named after the iconic pastry from the Belém district of Lisbon — received over 10,000 reviews from travellers on TripAdvisor in 2017 – more than any other food establishment in the world.

Established in 1837, it's known for its Pastéis de Belém — circular pastries that are similar to Portugal's famous pastéis de nata cream cakes.

It's easy to see why they're so popular — the bakery told Business Insider the pastries only cost €1.10 (£0.97 or $1.34) each.

Here's what they look like:

The bakery has an average rating of 4.5 out of 5, and it's possible that it only falls short of 5 stars because of the queues travellers often have to experience in order to get inside.

However, I visited the bakery back in 2014 and can confirm the pastries (and the coffee) are delicious — and well worth the wait.

The "secret recipe" has remained unchanged since the very beginning, when, during a time when all convents and monasteries in Portugal were shut down following the 1820 liberal revolution, someone from Mosteiro dos Jerónimos (the Heironymite Monastery) began selling sweet pastries in the general store beside it, which was also attached to a sugar cane refinery.

They became known as "Pastéis de Belém," and in 1837 the bakery was officially founded.

Patissiers work in a "secret room" to make the cream and the pastry which form the Pastéis.

The multi-room bakery is always buzzing.

It also sells other specialities including Bolo Inglês (English cake) and Marmelada (Marmalade).

But really it's all about the Pastéis de Belém.

SEE ALSO: How a City trader raised £8 million to open the world's first private members' wine club with 26,000 bottles in a Fort Knox-style cellar

Join the conversation about this story »

NOW WATCH: A crypto expert explains the difference between the two largest cryptocurrencies in the world: bitcoin and Ethereum

Bitcoin has crashed to as low as $9,500, falling below $10,000 for the first time since November and neatly halving its December 19th peak of $19,000, according to Coinbase. It has declined steadily since CES 2018 started, thanks to reports that Sou...

• Bitcoin Cash, which split from the flagship bitcoin in August 2017, hasn’t been immune to the cryptocurrency bloodbath that has wiped billions of market value from nearly all of the digital currencies this week.
• BCC has lost nearly 20% of its value in just 24 hours, plunging as low as $1,408 per coin, giving the cryptocurrency a market cap of $24.195 billion, according to OnChainFX. That's less than half of it's all-time high of $4,053, reached in December. 
• Cryptocurrency markets around the world have been smoked this week, with bitcoin falling below the $10,000 milestone it crossed back in November, thanks to concerns about regulation in Asia.
• "Despite the fact that bitcoin has almost halved from its peak of $19,800 reached mid-December, it still remains 1100% higher than it was 12 months ago," City Index's Simon Revington said in an email. "However, we could be seeing an important loss of momentum, especially given that Bitcoin hasn't traded above $15,000 since Tuesday. $10,000 level is an important junction because it is a huge psychological level."
• You can follow all the cryptocurrency price movements on Markets Insider>>

SEE ALSO: Sign up for Crypto Insider to get the most important updates on all things crypto delivered straight to your inbox.

Join the conversation about this story »

NOW WATCH: The chief global strategist at Charles Schwab says a bitcoin crash won't infect the rest of the market

• Bitcoin Cash, which split from the flagship bitcoin in August 2017, hasn’t been immune to the cryptocurrency bloodbath that has wiped billions of market value from nearly all of the digital currencies this week.
• BCC has lost nearly 20% of its value in just 24 hours, plunging as low as $1,408 per coin, giving the cryptocurrency a market cap of $24.195 billion, according to OnChainFX. That's less than half of it's all-time high of $4,053, reached in December. 
• Cryptocurrency markets around the world have been smoked this week, with bitcoin falling below the $10,000 milestone it crossed back in November, thanks to concerns about regulation in Asia.
• "Despite the fact that bitcoin has almost halved from its peak of $19,800 reached mid-December, it still remains 1100% higher than it was 12 months ago," City Index's Simon Revington said in an email. "However, we could be seeing an important loss of momentum, especially given that Bitcoin hasn't traded above $15,000 since Tuesday. $10,000 level is an important junction because it is a huge psychological level."
• You can follow all the cryptocurrency price movements on Markets Insider>>

SEE ALSO: Sign up for Crypto Insider to get the most important updates on all things crypto delivered straight to your inbox.

Join the conversation about this story »

NOW WATCH: Bitcoin can be a bubble and still change the world

The post Ripple Price Drops Below Dollar Parity to Punctuate 28% Skid appeared first on CCN

The ripple price fell below dollar parity this morning, punctuating the third-largest cryptocurrency’s 28 percent skid. Ripple Price Dips Below $1 Ripple entered 2018 on a hot streak of parabolic proportions. During a one-month period, the global average ripple price rocketed from just $0.25 to an all-time high of $3.84, creating XRP millionaires almost overnight and

The post Ripple Price Drops Below Dollar Parity to Punctuate 28% Skid appeared first on CCN

• Biotech giant Celgene is in talks to acquire Juno Therapeutics, The Wall Street Journal reported on Tuesday.
• If the deal goes through, it'd be the second deal in the past few months for companies working on treatments that use the body's immune cells to fight cancer, following Gilead's acquisition of Kite Pharma. 
• These highly personalized treatments, called CAR T-cell therapy, are at the beginning of what some are calling "a big new field of medicine."

A new form of cancer treatment that harnesses the body's immune cells to treat cancer is back in the headlines.

The Wall Street Journal reports that Celgene is in talks to buy cancer drugmaker Juno Therapeutics. 

Juno is developing a highly personalized cancer treatment called CAR T-cell therapy (CAR is short for chimeric antigen receptor).

2017 was a big year for these treatments: the Food and Drug Administration approved two treatments, one to treat treat pediatric acute lymphoblastic leukemia in people up to age 25 and another to treat aggressive B-cell non-Hodgkin lymphoma. And in August, Gilead Sciences nabbed CAR-T drugmaker Kite Pharma in a $12 billion deal. 

The interest in Juno has drummed up excitement for a possible deal for Bluebird Bio, another company developing cell therapies that has partnerships with Celgene. Bluebird was up as much as 7% on Tuesday evening following the Celgene-Juno report. 

How CAR-T cell therapy works

These treatments aren't your run-of-the-mill pill — or even a biologic drug, like insulin — that can be mass produced. Since the therapy is made from a person's own immune system, the process can take about three weeks.

• To start, a doctor removes some white blood cells, the part of our body's immune system responsible for combatting infections and foreign substances, from a patient. In a healthy body, the immune system can recognize abnormal, cancerous cells, but for people with cancer, it doesn't recognize that the cells are spreading.
• Then the cells are taken to a manufacturing facility at which point the cells are reengineered to recognize cancer cells and wipe them out.
• Those reprogrammed cells are sent back and administered to the patient.

While the treatments don't work in all patients, it can have dramatic results in those who do respond. For example, in a trial of 63 patients treated with Kymriah — the first cell therapy approved — 83% were in remission after three months, and 64% were still in remission after a year.

'A big new field of medicine'

With two CAR-Ts already approved and more in the works over the next few years, the field of cell therapies is starting to emerge.   

"We're at the very beginning of what's going to be a big new field of medicine," David Epstein, who helped license Kymriah from the University of Pennsylvania while at Novartis, told Business Insider in August after Kymriah was approved.

Epstein left Novartis in 2016 as CEO of its pharmaceuticals divisions. He's now the executive chairman of Rubius Therapeutics, a biotech firm that's also working with cell therapy to develop treatments like the CAR-Ts that don't have to be as personalized. The hope is that one day doctors will be able to prescribe a cell therapy and use it that same day instead of waiting weeks to get it back.

Epstein said he envisioned cell therapies having much shorter life cycles than traditional drugs. Instead of getting a better, updated therapy for a disease every decade or so, we might begin to see second-generation cell therapies in a few years.

One challenge these therapies still face is how toxic they can be. CAR-T's side effects can be deadly. In May 2017, Kite disclosed that one person had died in a clinical trial for its late-stage CAR-T therapy from cerebral edema, a condition in which excessive fluid causes the brain to swell. Juno said five people in its clinical trials had died, all from cerebral edema.

Eventually, cell therapies could go beyond blood cancers, and include solid tumors and maybe even autoimmune diseases like Type 1 diabetes, Epstein said.

SEE ALSO: A new approach to treating blood cancer just got a promising set of results

DON'T MISS: Big pharma is getting ready to spend tax reform dollars on big deals

Join the conversation about this story »

NOW WATCH: The chief global strategist at Charles Schwab says a bitcoin crash won't infect the rest of the market

• Ford is down 4.47% to $12.52 after the company guided 2018 earnings below expectations.
• The company said 2018 adjusted earnings would come in at about $1.45 to $1.70 per share.
• Estimates had placed earnings at $1.68 per share, according to Bloomberg.
• Ford is still expanding its lineup of electric vehicles and hopes to have 16 fully electric vehicles by 2022.
• The company also said it wants to begin self-driving car production in 2021.
• The carmaker is expected to report its full earnings on January 24.
• Ford is down 1.03% this year.

Watch Ford trade in real time here.

SEE ALSO: Check the latest Ford stock price here

Join the conversation about this story »

NOW WATCH: The chief global strategist at Charles Schwab says a bitcoin crash won't infect the rest of the market

• Ford is down 4.47% to $12.52 after the company guided 2018 earnings below expectations.
• The company said 2018 adjusted earnings would come in at about $1.45 to $1.70 per share.
• Estimates had placed earnings at $1.68 per share, according to Bloomberg.
• Ford is still expanding its lineup of electric vehicles and hopes to have 16 fully electric vehicles by 2022.
• The company also said it wants to begin self-driving car production in 2021.
• The carmaker is expected to report its full earnings on January 24.
• Ford is down 1.03% this year.

Watch Ford trade in real time here.

SEE ALSO: Check the latest Ford stock price here

Join the conversation about this story »

NOW WATCH: THE BOTTOM LINE: Chipotle vs. Qdoba, the bear case on Apple, and diagnosing a bitcoin bubble

• Goldman Sachs just released results from its fourth quarter, beating analyst expectations with adjusted earnings of $5.68 per share. 
• However, the fixed-income business struggled again, with revenues of just $1 billion — down by half from the same period a year before, and down 31% quarter-on-quarter. 
• It's a historically bad quarter for the fixed-income business, which has been a focus for investors and management. 

Goldman Sachs' fixed-income business just racked up a record it didn't want.

The unit posted quarterly revenues of $1 billion in the final three months of 2017, the lowest quarterly revenue line for that business since Goldman Sachs started breaking out fixed income, currencies, and commodities client execution revenues in 2010. That $1 billion figure also represented a 50% decline from a year ago, and a 31% drop from the previous quarter. 

In its earnings release, the bank said that both the equities and fixed income units "continued to operate in a challenging environment characterized by low levels of volatility and low client activity" in the fourth quarter.

Here's a breakdown of recent quarterly revenue numbers for fixed income:

It's likely to be a cause for concern for investors and management. 

The US investment bank in September set out a strategy to generate an additional $1 billion or more in fixed income, currencies, and commodities revenues.

"We are not satisfied with our recent performance in FICC," Harvey Schwartz, president and co-chief operating officer, said at the time. "We are intensely focused on it. We know you are, as well."

Goldman Sachs is hosting a conference call to discuss its results Thursday morning. You can expect this topic to be discussed at length. 

Join the conversation about this story »

NOW WATCH: A crypto expert explains the difference between the two largest cryptocurrencies in the world: bitcoin and Ethereum

The price of bitcoin has fallen below $10,000 for the first time since early December.

• Shares of Juno Therapeutics are up more than 50% in early trading on Wednesday following a Wall Street Journal report Tuesday evening that biotech giant Celgene is in talks to buy the cancer drugmaker.
• Juno is developing a highly personalized cancer treatment called CAR T-cell therapy (CAR is short for chimeric antigen receptor). 2017 was a big year for these treatments, with the Food and Drug Administration approving two, and Gilead Sciences buying CAR-T drugmaker Kite Pharma for $12 billion. 
• Celgene has been under pressure from investors to make some changes after a rocky 2017. Already in 2018, the company has acquired Impact Biosciences in a $7 billion deal, a move that didn't entirely excite the biotech community, Business Insider’s Lydia Ramsey reports.
• Juno closed down 6.46% on Tuesday. Celgene is down 1.43% pre-market Wednesday.

SEE ALSO: A cancer treatment that's part of 'a big new field of medicine' just got approved

Join the conversation about this story »

NOW WATCH: THE BOTTOM LINE: Chipotle vs. Qdoba, the bear case on Apple, and diagnosing a bitcoin bubble

The post Japan’s Largest Bank MUFG Will Open Cryptocurrency Exchange: Local Reports appeared first on CCN

Mitsubishi UFJ Financial Group, the largest bank and financial institution in Japan by assets, is planning on launching a bitcoin and cryptocurrency exchange targeting institutional and retail investors. Launching Cryptocurrency Exchange Japan’s Mainichi Shimbun, one of the major newspapers in the country, and South Korea’s national public news publication KBS, reported that MUFG is preparing

The post Japan’s Largest Bank MUFG Will Open Cryptocurrency Exchange: Local Reports appeared first on CCN

 The crypto crash that began two days ago accelerated yesterday and today, with essentially all top 100 coins down anywhere between 15-30 percent. The total market capitalization of all cryptocurrencies is hovering around $450 billion, down ~30 percent from $650 billion just 48 hours ago. Yesterday, Bitcoin was just a few dollars away from dropping below $10,000, but it bounced back around $11k,… Read More

• The cryptocurrency bloodbath is not limited to the currencies and tokens.
• Many companies that pivoted to crypto are getting whacked as well.
• Check the price of every major cryptocurrency live on Markets Insider.

Like adding "dot-com" to your company's name during the tech bubble of the late 1990s, simply adding the word "blockchain" has recently become a popular way to send a stock soaring. But, as most of the major cryptocurrencies post double-digit losses for the second day in a row on Wednesday, many of the pivot-to-crypto companies are getting whacked as well.

Many of the companies that decided to pivot to blockchain had no prior relation to the technology. As bitcoin hovers around the psychologically-important $10,000 mark, and Ethereum tests $1,000, many of the blockchain-pivoters have followed the currencies' decline.

Some companies' pivots make more sense than others. Kodak, the historic photo company, announced a new blockchain tech that would allow users to track down their copyrighted images on the web. Kodak, however, has fallen like the rest of them and is down 2.70% in early trading.

Many companies that pivoted to blockchain were hit on both Tuesday and Wednesday, as many cryptocurrencies were down heavily on both days.

Here's a roundup of some of the most notable companies and their moves.

• Eastman Kodak (KODK) Tuesday move: -7.61% Wednesday move: -2.70%
• Riot Blockchain (RIOT) Tuesday: -16.45% Wednesday: -5.25%
• Long Blockchain (LBCC) Tuesday: -2.39% Wednesday: +0.95%
• Future Fintech Group (FTFT) Tuesday: -9.93% Wednesday: +2.17%
• Seagate (STX) Tuesday: +0.49% Wednesday: -0.14%
• Longfin (LFIN) Tuesday: -8.45% Wednesday: -0.19%

Read more about each company's pivot here.

SEE ALSO: Ripple’s cofounder may have lost nearly $12 billion as XRP continues to slide in the 'cryptocurrency bloodbath'

Join the conversation about this story »

NOW WATCH: How the sale of Qdoba will impact Chipotle's future

• The cryptocurrency bloodbath is not limited to the currencies and tokens.
• Many companies that pivoted to crypto are getting whacked as well.
• Check the price of every major cryptocurrency live on Markets Insider.

Like adding "dot-com" to your company's name during the tech bubble of the late 1990s, simply adding the word "blockchain" has recently become a popular way to send a stock soaring. But, as most of the major cryptocurrencies post double-digit losses for the second day in a row on Wednesday, many of the pivot-to-crypto companies are getting whacked as well.

Many of the companies that decided to pivot to blockchain had no prior relation to the technology. As bitcoin hovers around the psychologically-important $10,000 mark, and Ethereum tests $1,000, many of the blockchain-pivoters have followed the currencies' decline.

Some companies' pivots make more sense than others. Kodak, the historic photo company, announced a new blockchain tech that would allow users to track down their copyrighted images on the web. Kodak, however, has fallen like the rest of them and is down 2.70% in early trading.

Many companies that pivoted to blockchain were hit on both Tuesday and Wednesday, as many cryptocurrencies were down heavily on both days.

Here's a roundup of some of the most notable companies and their moves.

• Eastman Kodak (KODK) Tuesday move: -7.61% Wednesday move: -2.70%
• Riot Blockchain (RIOT) Tuesday: -16.45% Wednesday: -5.25%
• Long Blockchain (LBCC) Tuesday: -2.39% Wednesday: +0.95%
• Future Fintech Group (FTFT) Tuesday: -9.93% Wednesday: +2.17%
• Seagate (STX) Tuesday: +0.49% Wednesday: -0.14%
• Longfin (LFIN) Tuesday: -8.45% Wednesday: -0.19%

Read more about each company's pivot here.

SEE ALSO: Ripple’s cofounder may have lost nearly $12 billion as XRP continues to slide in the 'cryptocurrency bloodbath'

Join the conversation about this story »

NOW WATCH: How the sale of Qdoba will impact Chipotle's future

• Ethereum is trading down 18.94% on Wednesday morning amid an onslaught of selling in many major cryptocurrencies. 
• Ethereum has lost over 35% of its value from its peak, and is currently trading at $863.29.
• The top cryptocurrencies have followed suit, seeing some of their values decline by half from recent record highs. Bitcoin was down 11.66% on Wednesday, while Litecoin fell by 14.93% and ripple's XRP was down 11.61%. 
• Many crypto markets were alarmed on Tuesday by news of a proposed bill that aimed to shut down crypto markets in South Korea. The bill threatens a key market, since South Korean traders are big buyers of cryptocurrencies.
• Bitcoin, the cryptocurrency known as "digital gold," fell below $10,000 on Wednesday, a milestone it had crossed in November. A few weeks ago, it almost hit $19,000.
• Watch Ethereum trade in real time on Markets Insider.

Read more about how investors are finding innovative ways to bank on bitcoin here.

SEE ALSO: A popular bitcoin stock announced a 91-for-1 split that could make it more accessible to the masses

Join the conversation about this story »

NOW WATCH: PAUL KRUGMAN: The Fed is in good hands under Jerome Powell

• Ethereum is trading down 18.94% on Wednesday morning amid an onslaught of selling in many major cryptocurrencies. 
• Ethereum has lost over 35% of its value from its peak, and is currently trading at $863.29.
• The top cryptocurrencies have followed suit, seeing some of their values decline by half from recent record highs. Bitcoin was down 11.66% on Wednesday, while Litecoin fell by 14.93% and ripple's XRP was down 11.61%. 
• Many crypto markets were alarmed on Tuesday by news of a proposed bill that aimed to shut down crypto markets in South Korea. The bill threatens a key market, since South Korean traders are big buyers of cryptocurrencies.
• Bitcoin, the cryptocurrency known as "digital gold," fell below $10,000 on Wednesday, a milestone it had crossed in November. A few weeks ago, it almost hit $19,000.
• Watch Ethereum trade in real time on Markets Insider.

Read more about how investors are finding innovative ways to bank on bitcoin here.

SEE ALSO: A popular bitcoin stock announced a 91-for-1 split that could make it more accessible to the masses

Join the conversation about this story »

NOW WATCH: PAUL KRUGMAN: The Fed is in good hands under Jerome Powell

• Ethereum is trading down 18.94% on Wednesday morning amid an onslaught of selling in many major cryptocurrencies. 
• Ethereum has lost over 35% of its value from its peak, and is currently trading at $863.29.
• The top cryptocurrencies have followed suit, seeing some of their values decline by half from recent record highs. Bitcoin was down 11.66% on Wednesday, while Litecoin fell by 14.93% and ripple's XRP was down 11.61%. 
• Many crypto markets were alarmed on Tuesday by news of a proposed bill that aimed to shut down crypto markets in South Korea. The bill threatens a key market, since South Korean traders are big buyers of cryptocurrencies.
• Bitcoin, the cryptocurrency known as "digital gold," fell below $10,000 on Wednesday, a milestone it had crossed in November. A few weeks ago, it almost hit $19,000.
• Watch Ethereum trade in real time on Markets Insider.

Read more about how investors are finding innovative ways to bank on bitcoin here.

SEE ALSO: A popular bitcoin stock announced a 91-for-1 split that could make it more accessible to the masses

Join the conversation about this story »

NOW WATCH: PAUL KRUGMAN: The Fed is in good hands under Jerome Powell

• The cryptocurrency market has lost $340 billion of value since the start of January, with a severe sell-off on Tuesday and Wednesday this week.
• Analysts are variously blaming: concerns about regulation, light trading volumes in Asia, bitcoin futures, and an unsustainable price run-up.
• Expect the volatility to continue this year, experts say.

LONDON — Bitcoin dropped below $10,000 on Wednesday, almost 50% below its December peak, as the cryptocurrency market entered the second day of a major sell-off.

Almost all major cryptocurrencies fell on Tuesday and the market slump has extended into Wednesday. The combined value of the more than 1,400 cryptocurrencies in circulation has now fallen from over $800 billion at the start of January to around $460 billion at Wednesday lunchtime, according to data provider CoinMarketCap.com.

The causes for the sell-off are far from clear, with several theories making the rounds. Here's a roundup of what analysts and market participants are saying:

Worries about a regulatory crackdown

The most popular theory among market commentators is that fears about a regulatory crackdown in Asia are driving the sell-off.

Fiona Cincotta, an analyst with City Index, said in an email on Wednesday: "The sell off comes amid concerns of fresh crackdowns on virtual currencies by the South Korean and Chinese government and as governments across the globe are struggling as how best to regulate bitcoin."

Fawad Razaqzada, a market analyst with Forex.com said in an email on Wednesday: "Cryptos have been held back in recent days amid increasing levels of scrutiny from regulators, most notably in South Korea, where the government is planning to clamp down on trading in virtual currencies.

"The justice ministry is apparently working on a bill to ban cryptocurrency trading through exchanges. If the bill is eventually passed by the National Assembly it would be very bad news given that South Korea is the world’s third-largest market for cryptocurrencies. The uncertainty is weighing on investor sentiment."

FXPro said in its daily client email on Tuesday: "The market seems overwhelmed by rumours regarding a complete currency ban in South Korea and the prohibition of mining in China due to high electricity consumption. What’s more, it was today reported that Chinese financial authorities plan to block domestic access to cryptocurrency trading platforms."

Asian volumes tailing off

Investors are already getting a taste of what a market without South Korean activity could look like and this may also be playing a role in the cryptocurrency "bloodbath."

Mati Greenspan, an analyst with trading platform eToro, told Business Insider on Tuesday that volumes from Japan and South Korea had been tailing off in recent days. Traders in these markets are usually buyers and a large scale exit could have created an imbalance in the market, with more sellers than buyers driving down prices and sparking a panic.

"As we noted yesterday, there's been a trend from South Korea and Japan of lower volumes these last few weeks," Greenspan said in a note to clients on Wednesday. "That did indeed come up a bit yesterday but is still nowhere near what it was in November/December."

Greenspan provided the below graphs showing how Korean won bitcoin volume has recently declined:And a similar chart showing the same trend with Japanese yen bitcoin buying:Greenspan said the pickup in volumes on Tuesday shows "that the two countries, especially Japan, are indeed starting to nibble at the lower prices. Indeed, the premiums have also come down a bit and price in the top two cryptotrading countries are now more normal compared to the rest of the world."

The Bitcoin futures theory

Perhaps the wildest theory for what is driving the cryptocurrency crash is that the maturing of the first bitcoin futures contracts to blame.

Cboe and CME Group both introduced bitcoin futures contracts in mid-December, allowing institutional investors such as hedge funds to speculate on the future price of the digital currency.

The first bitcoin contracts, which are cash-settled, matured on Wednesday, January 17. The contract's settlement price is determined by a price auction on the Gemini exchange at 4 p.m. on Tuesday and some people are speculating that aggressive selling activity could have been used to drive down the price of bitcoin on the exchange to turn the futures contracts into winning bets.

"Back-of-the-envelope calculations suggest that as little as a million dollars could be used to shore up futures positions and influence the auction market," said EthNews.com's Matthew Da Silva, who reported on the theory.

CNBC, which also floated the idea, reported that Cboe's January 17 maturing bitcoin futures were priced at $10,000 on Tuesday afternoon, meaning that holders, in theory, had an incentive to push the price down by selling bitcoins they may have held as a hedge.

A popular Reddit thread has sprung up floating this idea, saying a sudden drop in the bitcoin price could have spooked the market.

"It's always fun to spin these types of stories but personally I don't buy into it," Greenspan told Business Insider.

"Number one, the entire market crashed, not just bitcoin. All the altcoins plummeted as well and Wall Street only has access to the bitcoin futures, which is fairly disconnected from bitcoin itself and certainly from the likes of Litecoin and Dash.

"Second point, the volumes that have been traded on these futures contracts are not sufficient to move the markets."

Greenspan said that the total trade of Cboe's January 17 bitcoin contracts was around $1 billion in the month since they launched.

"Daily market volume on bitcoin is today $14.5 billion," he said. "$1 billion over the course of a month, I don't think is going to tickle anything."

Thomas Bertani, the CEO of cryptocurrency wallet company Eidoo, which has its own cryptocurrency, agreed with Greenspan. Bertani told BI: "It might have played a role, but those price movements are all but new."

A correction that was a long time coming

Bertani thinks the biggest factor driving the crash is the market overheating. Bitcoin rose by over 200% between October and December of last year as huge numbers of new investors poured cash into the sector.

Other cryptocurrencies rose alongside bitcoin and many market watchers argued that this created unsustainable bubble-like market conditions. The recent crash is just some of the air coming out of the bubble, Bertani argues.

"The last year has seen once again a massive growth and hype cycle (like it did already several times before) which needs to go back to normal after the current hype has reached its peak," he said. "This is most likely what is going on now.

"The hypothesis of South Korea banning cryptocurrencies, more than a driving factor, is really just an excuse for the market to rest down for a little bit before continuing with its continuous growth."

Pawel Kuskowski, the CEO and founder of Coinfirm, which provides cryptocurrency compliance services, told Business Insider on Wednesday: "It's a correction, a long-expected correction.

"It was just for too long going up and up and up. Ether, in two months, went up from $300 to $1,300. That's absurd. Just crazy.

"I think there are some positions that are being closed at the moment but I don't think it's going to be a big negative impact. The correction was quite needed because it was just absurd what was happening."

Expect more volatility

While Kuskowski doesn't expect any long-term negative impact to the sector from the currency sell-off, he does think that we are likely to see more of this type of volatility for the foreseeable future.

"I think it's going to stabilise probably not this year but probably within three or four years," he told BI. "You're going to have more checks and balances. But in principle it's going to be a crazy world for another one year, two years, that's for sure. You're going to see more and more volatility, but then it's stabilisation."

Christopher Keshian, managing partner and cofounder of Apex Token Fund, agreed, saying in an email: "The volatility of bitcoin — and other cryptocurrencies — is an expected, and important, part of the journey to becoming a mature asset class.

"We expect the volatility to continue throughout 2018 but fundamentally believe that bitcoin is still in a bull market."

Join the conversation about this story »

NOW WATCH: Netflix is headed for a huge profit milestone in 2018

• The cryptocurrency market has lost $340 billion of value since the start of January, with a severe sell-off on Tuesday and Wednesday this week.
• Analysts are variously blaming: concerns about regulation, light trading volumes in Asia, bitcoin futures, and an unsustainable price run-up.
• Expect the volatility to continue this year, experts say.

LONDON — Bitcoin dropped below $10,000 on Wednesday, almost 50% below its December peak, as the cryptocurrency market entered the second day of a major sell-off.

Almost all major cryptocurrencies fell on Tuesday and the market slump has extended into Wednesday. The combined value of the more than 1,400 cryptocurrencies in circulation has now fallen from over $800 billion at the start of January to around $460 billion at Wednesday lunchtime, according to data provider CoinMarketCap.com.

The causes for the sell-off are far from clear, with several theories making the rounds. Here's a roundup of what analysts and market participants are saying:

Worries about a regulatory crackdown

The most popular theory among market commentators is that fears about a regulatory crackdown in Asia are driving the sell-off.

Fiona Cincotta, an analyst with City Index, said in an email on Wednesday: "The sell off comes amid concerns of fresh crackdowns on virtual currencies by the South Korean and Chinese government and as governments across the globe are struggling as how best to regulate bitcoin."

Fawad Razaqzada, a market analyst with Forex.com said in an email on Wednesday: "Cryptos have been held back in recent days amid increasing levels of scrutiny from regulators, most notably in South Korea, where the government is planning to clamp down on trading in virtual currencies.

"The justice ministry is apparently working on a bill to ban cryptocurrency trading through exchanges. If the bill is eventually passed by the National Assembly it would be very bad news given that South Korea is the world’s third-largest market for cryptocurrencies. The uncertainty is weighing on investor sentiment."

FXPro said in its daily client email on Tuesday: "The market seems overwhelmed by rumours regarding a complete currency ban in South Korea and the prohibition of mining in China due to high electricity consumption. What’s more, it was today reported that Chinese financial authorities plan to block domestic access to cryptocurrency trading platforms."

Asian volumes tailing off

Investors are already getting a taste of what a market without South Korean activity could look like and this may also be playing a role in the cryptocurrency "bloodbath."

Mati Greenspan, an analyst with trading platform eToro, told Business Insider on Tuesday that volumes from Japan and South Korea had been tailing off in recent days. Traders in these markets are usually buyers and a large scale exit could have created an imbalance in the market, with more sellers than buyers driving down prices and sparking a panic.

"As we noted yesterday, there's been a trend from South Korea and Japan of lower volumes these last few weeks," Greenspan said in a note to clients on Wednesday. "That did indeed come up a bit yesterday but is still nowhere near what it was in November/December."

Greenspan provided the below graphs showing how Korean won bitcoin volume has recently declined:And a similar chart showing the same trend with Japanese yen bitcoin buying:Greenspan said the pickup in volumes on Tuesday shows "that the two countries, especially Japan, are indeed starting to nibble at the lower prices. Indeed, the premiums have also come down a bit and price in the top two cryptotrading countries are now more normal compared to the rest of the world."

The Bitcoin futures theory

Perhaps the wildest theory for what is driving the cryptocurrency crash is that the maturing of the first bitcoin futures contracts to blame.

Cboe and CME Group both introduced bitcoin futures contracts in mid-December, allowing institutional investors such as hedge funds to speculate on the future price of the digital currency.

The first bitcoin contracts, which are cash-settled, matured on Wednesday, January 17. The contract's settlement price is determined by a price auction on the Gemini exchange at 4 p.m. on Tuesday and some people are speculating that aggressive selling activity could have been used to drive down the price of bitcoin on the exchange to turn the futures contracts into winning bets.

"Back-of-the-envelope calculations suggest that as little as a million dollars could be used to shore up futures positions and influence the auction market," said EthNews.com's Matthew Da Silva, who reported on the theory.

CNBC, which also floated the idea, reported that Cboe's January 17 maturing bitcoin futures were priced at $10,000 on Tuesday afternoon, meaning that holders, in theory, had an incentive to push the price down by selling bitcoins they may have held as a hedge.

A popular Reddit thread has sprung up floating this idea, saying a sudden drop in the bitcoin price could have spooked the market.

"It's always fun to spin these types of stories but personally I don't buy into it," Greenspan told Business Insider.

"Number one, the entire market crashed, not just bitcoin. All the altcoins plummeted as well and Wall Street only has access to the bitcoin futures, which is fairly disconnected from bitcoin itself and certainly from the likes of Litecoin and Dash.

"Second point, the volumes that have been traded on these futures contracts are not sufficient to move the markets."

Greenspan said that the total trade of Cboe's January 17 bitcoin contracts was around $1 billion in the month since they launched.

"Daily market volume on bitcoin is today $14.5 billion," he said. "$1 billion over the course of a month, I don't think is going to tickle anything."

Thomas Bertani, the CEO of cryptocurrency wallet company Eidoo, which has its own cryptocurrency, agreed with Greenspan. Bertani told BI: "It might have played a role, but those price movements are all but new."

A correction that was a long time coming

Bertani thinks the biggest factor driving the crash is the market overheating. Bitcoin rose by over 200% between October and December of last year as huge numbers of new investors poured cash into the sector.

Other cryptocurrencies rose alongside bitcoin and many market watchers argued that this created unsustainable bubble-like market conditions. The recent crash is just some of the air coming out of the bubble, Bertani argues.

"The last year has seen once again a massive growth and hype cycle (like it did already several times before) which needs to go back to normal after the current hype has reached its peak," he said. "This is most likely what is going on now.

"The hypothesis of South Korea banning cryptocurrencies, more than a driving factor, is really just an excuse for the market to rest down for a little bit before continuing with its continuous growth."

Pawel Kuskowski, the CEO and founder of Coinfirm, which provides cryptocurrency compliance services, told Business Insider on Wednesday: "It's a correction, a long-expected correction.

"It was just for too long going up and up and up. Ether, in two months, went up from $300 to $1,300. That's absurd. Just crazy.

"I think there are some positions that are being closed at the moment but I don't think it's going to be a big negative impact. The correction was quite needed because it was just absurd what was happening."

Expect more volatility

While Kuskowski doesn't expect any long-term negative impact to the sector from the currency sell-off, he does think that we are likely to see more of this type of volatility for the foreseeable future.

"I think it's going to stabilise probably not this year but probably within three or four years," he told BI. "You're going to have more checks and balances. But in principle it's going to be a crazy world for another one year, two years, that's for sure. You're going to see more and more volatility, but then it's stabilisation."

Christopher Keshian, managing partner and cofounder of Apex Token Fund, agreed, saying in an email: "The volatility of bitcoin — and other cryptocurrencies — is an expected, and important, part of the journey to becoming a mature asset class.

"We expect the volatility to continue throughout 2018 but fundamentally believe that bitcoin is still in a bull market."

Join the conversation about this story »

NOW WATCH: Netflix is headed for a huge profit milestone in 2018

• Ripple's XRP cryptocurrency has fallen by more than 60% since January 1 as the cryptocurrency bloodbath continues. 
• Co-founder Chris Larsen, who holds 5.19 billion XRP, could have lost nearly $12 billion because of the slump.

The cryptocurrency bloodbath has wiped billions from markets as the tokens continue to lose the momentum they carried into 2017.

Ripple co-founder Chris Larsen, who is confirmed to hold 5.19 billion of the company’s XRP cryptocurrency, could be one of the biggest victims. Assuming that his 5.19 billion XRP holding has remained constant, at Wednesday’s price of $1.04 per token, Larsen has lost an estimated $11.8 billion since the cryptocurrency's high of $3.31, hit on January 4.

Of course, the co-founder could have cashed out at any time, though a sell-off of that magnitude would likely have sent massive waves through both the XRP markets and cryptocurrencies as a whole.

At XRP's peak, Larsen’s holdings would have made him the 21st richest person in the world, according to Bloomberg’s Billionaire Index — just behind Indian business magnate Mukesh Ambani.

The 57-year-old stepped down as CEO of Ripple in November 2016, turning over the reigns to current CEO Brad Garlinghouse, who owns a 6.3% stake in the company, Forbes reported in January. Larsen currently serves as chairman.

XRP’s decline began shortly after the new year, when a brief Twitter spat between a New York Times reporter and CEO Brad Garlinghouse seemed to bring down prices a bit. Later that week, CoinMarketCap, one of the most widely used cryptocurrency pricing sites, unexpectedly removed data from South Korean exchanges from its averages, causing it to show a dramatic drop in crypto prices across the board and possibly triggering further selling.

This week, reports from China and South Korea — two major areas of focus for Ripple — said the countries were mulling further clampdowns on cryptocurrency mining and exchanges, exacerbating the slide among all cryptocurrencies.

The continued slump comes amid reports that Russia could also be about to impose stricter regulations on the sector. The Russian news service TASS reported last week that Russian President Vladimir Putin said "legislative regulation will be definitely required in future" for cryptocurrencies.

Bitcoin has remained the most widely-held cryptocurrency, but even the flagship token has taken a hit this month. On Wednesday the token fell below $10,000 for the first time since it crossed the milestone in November.

"Despite the fact that bitcoin has almost halved from its peak of $19,800 reached mid-December, it still remains 1100% higher than it was 12 months ago," City Index's Simon Revington said in an email.

"However, we could be seeing an important loss of momentum, especially given that Bitcoin hasn't traded above $15,000 since Tuesday. $10,000 level is an important junction because it is a huge psychological level."

Track the price of XRP in real-time on Markets Insider here>>

SEE ALSO: Sign up to get the most important updates on all things crypto delivered straight to your inbox.

Join the conversation about this story »

NOW WATCH: The chief global strategist at Charles Schwab says a bitcoin crash won't infect the rest of the market

• Ripple's XRP cryptocurrency has fallen by more than 60% since January 1 as the cryptocurrency bloodbath continues. 
• Co-founder Chris Larsen, who holds 5.19 billion XRP, could have lost nearly $12 billion because of the slump.

The cryptocurrency bloodbath has wiped billions from markets as the tokens continue to lose the momentum they carried into 2017.

Ripple co-founder Chris Larsen, who is confirmed to hold 5.19 billion of the company’s XRP cryptocurrency, could be one of the biggest victims. Assuming that his 5.19 billion XRP holding has remained constant, at Wednesday’s price of $1.04 per token, Larsen has lost an estimated $11.8 billion since the cryptocurrency's high of $3.31, hit on January 4.

Of course, the co-founder could have cashed out at any time, though a sell-off of that magnitude would likely have sent massive waves through both the XRP markets and cryptocurrencies as a whole.

At XRP's peak, Larsen’s holdings would have made him the 21st richest person in the world, according to Bloomberg’s Billionaire Index — just behind Indian business magnate Mukesh Ambani.

The 57-year-old stepped down as CEO of Ripple in November 2016, turning over the reigns to current CEO Brad Garlinghouse, who owns a 6.3% stake in the company, Forbes reported in January. Larsen currently serves as chairman.

XRP’s decline began shortly after the new year, when a brief Twitter spat between a New York Times reporter and CEO Brad Garlinghouse seemed to bring down prices a bit. Later that week, CoinMarketCap, one of the most widely used cryptocurrency pricing sites, unexpectedly removed data from South Korean exchanges from its averages, causing it to show a dramatic drop in crypto prices across the board and possibly triggering further selling.

This week, reports from China and South Korea — two major areas of focus for Ripple — said the countries were mulling further clampdowns on cryptocurrency mining and exchanges, exacerbating the slide among all cryptocurrencies.

The continued slump comes amid reports that Russia could also be about to impose stricter regulations on the sector. The Russian news service TASS reported last week that Russian President Vladimir Putin said "legislative regulation will be definitely required in future" for cryptocurrencies.

Bitcoin has remained the most widely-held cryptocurrency, but even the flagship token has taken a hit this month. On Wednesday the token fell below $10,000 for the first time since it crossed the milestone in November.

"Despite the fact that bitcoin has almost halved from its peak of $19,800 reached mid-December, it still remains 1100% higher than it was 12 months ago," City Index's Simon Revington said in an email.

"However, we could be seeing an important loss of momentum, especially given that Bitcoin hasn't traded above $15,000 since Tuesday. $10,000 level is an important junction because it is a huge psychological level."

Track the price of XRP in real-time on Markets Insider here>>

SEE ALSO: Sign up to get the most important updates on all things crypto delivered straight to your inbox.

Join the conversation about this story »

NOW WATCH: The chief global strategist at Charles Schwab says a bitcoin crash won't infect the rest of the market

• Ripple's XRP cryptocurrency has fallen by more than 60% since January 1 as the cryptocurrency bloodbath continues. 
• Co-founder Chris Larsen, who holds 5.19 billion XRP, could have lost nearly $12 billion because of the slump.

The cryptocurrency bloodbath has wiped billions from markets as the tokens continue to lose the momentum they carried into 2017.

Ripple co-founder Chris Larsen, who is confirmed to hold 5.19 billion of the company’s XRP cryptocurrency, could be one of the biggest victims. Assuming that his 5.19 billion XRP holding has remained constant, at Wednesday’s price of $1.04 per token, Larsen has lost an estimated $11.8 billion since the cryptocurrency's high of $3.31, hit on January 4.

Of course, the co-founder could have cashed out at any time, though a sell-off of that magnitude would likely have sent massive waves through both the XRP markets and cryptocurrencies as a whole.

At XRP's peak, Larsen’s holdings would have made him the 21st richest person in the world, according to Bloomberg’s Billionaire Index — just behind Indian business magnate Mukesh Ambani.

The 57-year-old stepped down as CEO of Ripple in November 2016, turning over the reigns to current CEO Brad Garlinghouse, who owns a 6.3% stake in the company, Forbes reported in January. Larsen currently serves as chairman.

XRP’s decline began shortly after the new year, when a brief Twitter spat between a New York Times reporter and CEO Brad Garlinghouse seemed to bring down prices a bit. Later that week, CoinMarketCap, one of the most widely used cryptocurrency pricing sites, unexpectedly removed data from South Korean exchanges from its averages, causing it to show a dramatic drop in crypto prices across the board and possibly triggering further selling.

This week, reports from China and South Korea — two major areas of focus for Ripple — said the countries were mulling further clampdowns on cryptocurrency mining and exchanges, exacerbating the slide among all cryptocurrencies.

The continued slump comes amid reports that Russia could also be about to impose stricter regulations on the sector. The Russian news service TASS reported last week that Russian President Vladimir Putin said "legislative regulation will be definitely required in future" for cryptocurrencies.

Bitcoin has remained the most widely-held cryptocurrency, but even the flagship token has taken a hit this month. On Wednesday the token fell below $10,000 for the first time since it crossed the milestone in November.

"Despite the fact that bitcoin has almost halved from its peak of $19,800 reached mid-December, it still remains 1100% higher than it was 12 months ago," City Index's Simon Revington said in an email.

"However, we could be seeing an important loss of momentum, especially given that Bitcoin hasn't traded above $15,000 since Tuesday. $10,000 level is an important junction because it is a huge psychological level."

Track the price of XRP in real-time on Markets Insider here>>

SEE ALSO: Sign up to get the most important updates on all things crypto delivered straight to your inbox.

Join the conversation about this story »

NOW WATCH: Bitcoin can be a bubble and still change the world

• Ripple's XRP cryptocurrency has fallen by more than 60% since January 1 as the cryptocurrency bloodbath continues. 
• Co-founder Chris Larsen, who holds 5.19 billion XRP, could have lost nearly $12 billion because of the slump.

The cryptocurrency bloodbath has wiped billions from markets as the tokens continue to lose the momentum they carried into 2017.

Ripple co-founder Chris Larsen, who is confirmed to hold 5.19 billion of the company’s XRP cryptocurrency, could be one of the biggest victims. Assuming that his 5.19 billion XRP holding has remained constant, at Wednesday’s price of $1.04 per token, Larsen has lost an estimated $11.8 billion since the cryptocurrency's high of $3.31, hit on January 4.

Of course, the co-founder could have cashed out at any time, though a sell-off of that magnitude would likely have sent massive waves through both the XRP markets and cryptocurrencies as a whole.

At XRP's peak, Larsen’s holdings would have made him the 21st richest person in the world, according to Bloomberg’s Billionaire Index — just behind Indian business magnate Mukesh Ambani.

The 57-year-old stepped down as CEO of Ripple in November 2016, turning over the reigns to current CEO Brad Garlinghouse, who owns a 6.3% stake in the company, Forbes reported in January. Larsen currently serves as chairman.

XRP’s decline began shortly after the new year, when a brief Twitter spat between a New York Times reporter and CEO Brad Garlinghouse seemed to bring down prices a bit. Later that week, CoinMarketCap, one of the most widely used cryptocurrency pricing sites, unexpectedly removed data from South Korean exchanges from its averages, causing it to show a dramatic drop in crypto prices across the board and possibly triggering further selling.

This week, reports from China and South Korea — two major areas of focus for Ripple — said the countries were mulling further clampdowns on cryptocurrency mining and exchanges, exacerbating the slide among all cryptocurrencies.

The continued slump comes amid reports that Russia could also be about to impose stricter regulations on the sector. The Russian news service TASS reported last week that Russian President Vladimir Putin said "legislative regulation will be definitely required in future" for cryptocurrencies.

Bitcoin has remained the most widely-held cryptocurrency, but even the flagship token has taken a hit this month. On Wednesday the token fell below $10,000 for the first time since it crossed the milestone in November.

"Despite the fact that bitcoin has almost halved from its peak of $19,800 reached mid-December, it still remains 1100% higher than it was 12 months ago," City Index's Simon Revington said in an email.

"However, we could be seeing an important loss of momentum, especially given that Bitcoin hasn't traded above $15,000 since Tuesday. $10,000 level is an important junction because it is a huge psychological level."

Track the price of XRP in real-time on Markets Insider here>>

SEE ALSO: Sign up to get the most important updates on all things crypto delivered straight to your inbox.

Join the conversation about this story »

NOW WATCH: Bitcoin can be a bubble and still change the world

• One single company has been blowing a hole through Wall Street bank earnings.
• The "single client" has reappeared in the fourth-quarter announcements of major banks as the culprit for hundreds of millions in unexpected, one-time losses.
• While other banks were mum, JPMorgan identified the culprit: Steinhoff International, a South Africa retailer whose stock cratered after an accounting scandal.
• "It is by far and away the largest loss in [the equity] business we've seen since the crisis," CFO Marianne Lake said.

One single company has been blowing a hole through Wall Street bank earnings, reappearing in the fourth-quarter announcements of major banks as the culprit for hundreds of millions in unexpected, one-time losses.

It started with JPMorgan last week, which reported a $273 million hit to its fourth-quarter earnings from "a single client," followed by Citigroup on Tuesday announcing a "single client" was responsible for a $130 million wipeout in in its equities-trading revenue.

Wednesday, Bank of America announced a $292 million charge-off from a single client, but, following Citi's example, declined to say who was responsible.

"We would not want to comment on specific information on any borrowers," CFO Paul Donofrio told journalists. CEO Brian Moynihan added: "Once in a while something doesn't turn out the way you want, because that's the definition of what risk is."

Only JPMorgan was willing to confirm the name of the company responsible for knocking nearly $700 million off of the three banks' otherwise strong financial results: Steinhoff International, a South African retailer whose stock has cratered following an accounting scandal.

A group of Wall Street banks loaned money last year to an entity controlled by Christo Wiese, the former chairman of Steinhoff, a deal that has since gone belly-up. 

Citi, HSBC, Goldman Sachs, and Nomura initially arranged the $1.8 billion margin loan, backed by some 628 million shares of Steinhoff's now-crippled stock, and subsequently sold off parts of the loan to other banks.

"It is by far and away the largest loss in that business we've seen since the crisis," CFO Marianne Lake said in an analyst call.

Other banks are expected to have exposure to Steinhoff as well. Bloomberg reported that Goldman Sachs was expected to take a loss on Steinhoff as well, though the bankdidn't explicitly detail one in its fourth-quarter earnings release. 

Join the conversation about this story »

NOW WATCH: Netflix is headed for a huge profit milestone in 2018

The post Bitcoin Price Plunges Below $10,000 as Correction Intensifies appeared first on CCN

The bitcoin price plunged below $10,000 on Wednesday as this week’s comprehensive market correction intensified. Bitcoin Price Plunges Below $10,000 The cryptocurrency markets have been in a free-fall this week, and the downward spiral continued this morning. The cryptocurrency market cap dove below $500 billion, and the bitcoin price sunk as low as $9,663 on

The post Bitcoin Price Plunges Below $10,000 as Correction Intensifies appeared first on CCN

Here is what you need to know.

Bitcoin falls below $10,000 as cryptocurrency 'bloodbath' enters a second day. The selloff is a continuation of one that started on Tuesday amid concerns about regulation in the Asian market.

Bank of America beats earnings expectations. The company reported adjusted earnings of $0.47 a share, beating consensus Wall Street estimates of $0.45 a share.

Goldman Sachs beats on earnings, despite trading woes. The firm reported adjusted earnings of $5.68 per share, beating Wall Street analyst expectations of $4.90 a share.

We crunched the numbers to find the one stock set to get the biggest boost from Trump tax reform. We've sorted through all of the guidance provided by Wall Street experts and developed a methodology that's helped us to arrive at the one company that should emerge as the king of tax.

Credit Suisse identifies things that could drive the stock market crazy in 2018. The firm sees sharply higher bond yields, a possible trade war and geopolitical risks pushing equity volatility higher this year.

The chief UK strategist at JPMorgan's $1.7 trillion investment arm reveals her biggest fear for the British economy in 2018. Karen Ward says Brexit uncertainty is stopping businesses from investing, which in turn is stifling growth.

Kaspersky Lab said that it found an Android spying app. The malware, said to come from Italian vendors, relies on five distinct exploits to gain root access, and can go as far as stealing WhatsApp messages.

Stock markets around the world were mixed. China's Shanghai Composite (+0.24%) climbed, while Germany's DAX (-0.1%) slid. The S&P 500 is set to open up 0.32% near 2,791.50.

Earnings reports continue to be released. Bank of America and Goldman Sachs have already reported, while Schwab and US Bancorp are also set to report before the market open. Alcoa and Kinder Morgan are due to announce quarterly earnings after the market close.

SEE ALSO: We crunched the numbers to find the one stock set to get the biggest boost from Trump tax reform

Join the conversation about this story »

NOW WATCH: The chief global strategist at Charles Schwab says stocks will keep soaring in 2018

Bitcoin is still dropping and might soon test near-$8,000 levels, chart analysis indicates.

• Bank of England policymaker Michael Saunders believes UK unemployment could fall below 4% in 2018.
• Speaking in London, Saunders said that both labour demand and the broader UK economy will hold up this year, helping push joblessness down.
• The UK’s current unemployment rate stands at a low of just 4.3%, meaning that Britain is technically pretty close to achieving full employment.

LONDON — Unemployment in the UK could fall below 4% in 2018, as the country's job market continues to defy the uncertainty surrounding Britain's economic future outside the EU, Michael Saunders, a senior figure at the Bank of England has said.

Speaking at the launch of the Financial Intermediary and Broker Association in London on Wednesday, Saunders — a member of the bank's rate setting Monetary Policy Committee — said that he has a "hunch" that the job market will defy forecasters and continue to tighten in 2018.

"The view of the external consensus is that this decline in unemployment is now probably over, and that unemployment is likely to stabilise or rise slightly this year," Saunders told the audience.

"But my hunch is that the labour market will probably tighten further this year, with the jobless rate dropping to -- and perhaps even below -- 4% during 2018, alongside further declines in under-employment."

Saunders argued that the reason for his forecast about unemployment is his belief "that the economy and labour demand are likely to hold up a bit better than many expect."

The UK’s current unemployment rate stands at a low of just 4.3%, meaning that Britain is technically pretty close to achieving full employment — the point where everybody who wants a job, and is able to work, is employed.

Soon after the Brexit vote, employment was one part of the economy that many forecasters believed would suffer as a result of a Leave vote.

In early July 2016 for instance, Credit Suisse predicted that Brexit could mean 500,000 Brits losing their jobs. In their note, reassuringly titled "Mayday! Mayday!" the bank's UK economics team said that "we can expect the unemployment rate to jump up to 6.5% by the end of 2017." That translates to around 500,000 more people unemployed. Such predictions have failed to materialise.

Wednesday's speech is not the first time Saunders has addressed unemployment, and last year, he claimed that the UK's equilibrium employment rate — basically the point where falls in unemployment don't result in increasing inflation — has now dropped to 5%, much lower than previously thought.

Join the conversation about this story »

NOW WATCH: A crypto expert explains the difference between the two largest cryptocurrencies in the world: bitcoin and Ethereum

The post Newsflash: Bitcoin Price Falls Below $10,000 in 6-Week Low appeared first on CCN

Bitcoin price plunged to a six-week low on Wednesday amid a continued downturn in wider cryptocurrency markets. It has been a turbulent week for cryptocurrency markets and bitcoin, the world’s first cryptocurrency and largest by market cap, struck a low of $9633 (Bitfinex). Data from CoinMarketCap shows the total value of all bitcoins mined at

The post Newsflash: Bitcoin Price Falls Below $10,000 in 6-Week Low appeared first on CCN

Economists recently took a look the spike that first sent Bitcoin over $1,000, finding it was most likely the result of a single person using bots to make a quick buck.

The post Researchers: One Person Drove Bitcoin Price from $150 to $1,000 appeared first on ExtremeTech.

The crypto-currency has nearly halved in value since its peak in December.

• Energy demand to mine cryptocurrencies "may represent a new business opportunity for renewable energy developers," Morgan Stanley said. 
• Low-cost power regions, including the Southwest or Midwest US, and areas with the potential for wind and solar energy, stand to benefit the most from the rise in demand for energy.

Crypto mania could soon have an impact on the renewable energy business, according to Morgan Stanley.

In a note to clients, the US investment bank said that it costs between $3,000 and $7,000 to mine each bitcoin, making low-cost energy a key focus for bitcoin miners. That, in turn, may present an opportunity for renewable energy firms, according to Morgan Stanley. 

Morgan Stanley said:

"In theory there could be pockets of outsized mining profitability given our projection that renewable energy, and storage, costs are likely to fall substantially. For example, if firm renewable energy could be generated at an all-in cost of 6 cents per kWh in the US, the cost of generating one Bitcoin would fall by $600 relative to a power cost of 8 cents per kWh. In the Southwest US, NextEra Energy recently signed an agreement to provide a customer with a combination of solar power and energy storage at 4.5 cents/kWh. Recent wind power sales contracts in the Midwest US are in the range of 1.5-2.5 cents/kWh, and we project this will continue to drop as wind blade lengths continue to increase."

Here are the companies Morgan Stanley highlighted as the key utilities that could benefit from increased electricity demand due to bitcoin mining, along with some of the bank's comments on why they're well-positioned: 

American Electric Power

Ticker: AEP

Market Cap: $34.4 billion

Comments: "The key utility beneficiaries we would highlight include: American Electric Power (AEP), Xcel Energy (XEL), and Entergy (ETR). These utilities serve the regions with the lowest cost of electricity, and AEP and XEL are taking advantage of low cost wind to drive rates even lower."

Xcel Energy

Ticker: XEL

Market Cap: $23.3 billion

Comments: "The key utility beneficiaries we would highlight include: American Electric Power (AEP), Xcel Energy (XEL), and Entergy (ETR). These utilities serve the regions with the lowest cost of electricity, and AEP and XEL are taking advantage of low cost wind to drive rates even lower."

Entergy

Ticker: ETR

Market Cap: $14.4 billion

Comments: "The key utility beneficiaries we would highlight include: American Electric Power (AEP), Xcel Energy (XEL), and Entergy (ETR). These utilities serve the regions with the lowest cost of electricity, and AEP and XEL are taking advantage of low cost wind to drive rates even lower."

While both were great minds, neither Marx nor Satoshi had the power to predict how their ideas would influence others or be implemented.

Goldman Sachs is expected to release results from its fourth-quarter at around 7:30 am Wednesday. 

Wall Street analysts are expecting the firm to report adjusted earnings of $4.90 a share.

Like the other big banks, Goldman Sachs is expected to take a hit from the recently passed tax law, thanks to a combination of taxes on repatriated cash and deferred tax assets that declined in value. 

JPMorgan reported a $2.4 billion fourth-quarter loss because of the new tax law, and Citigroup reported a $22 billion loss. The CEOs of each firm nonetheless praised the potential long-term benefits of the law. 

Analysts expect Goldman Sachs to report non-adjusted earnings of -$6.05 a share after accounting for the effects of the tax law and other one-time gains and costs. 

Here's what else Wall Street will be looking for:

• Revenues of $7.6 billion
• Adjusted net income of $1.96 billion
• Non-adjusted net income of -$2.35 billion
• The FICC business: Goldman Sachs' commodities business had a terrible time of it in 2017, and the broader business struggled too. 

One last item to be on the lookout for: Any losses related to scandal-wracked South African retailer Steinhoff International.

A group of Wall Street banks loaned money last year to an entity controlled by Christo Wiese, the former chairman of Steinhoff International, whose stock has been ravaged by an accounting scandal.

Citi, HSBC, Goldman Sachs, and Nomura initially arranged the $1.8 billion loan, backed by some 628 million shares of Steinhoff's now-crippled stock, and subsequently sold off parts of the loan to other banks.

JPMorgan reported a $273 million hit to its fourth-quarter earnings from the deal.

Though Citi didn't name the single client responsible for a $130 million wipeout in in its equities-trading revenue, it's also likely attributable to Steinhoff. 

Other banks, including Goldman Sachs, are expected to have exposure to Steinhoff as well. 

Join the conversation about this story »

NOW WATCH: A crypto expert explains the difference between the two largest cryptocurrencies in the world: bitcoin and Ethereum

Goldman Sachs is expected to release results from its fourth-quarter at around 7:30 am Wednesday. 

Wall Street analysts are expecting the firm to report adjusted earnings of $4.90 a share.

Like the other big banks, Goldman Sachs is expected to take a hit from the recently passed tax law, thanks to a combination of taxes on repatriated cash and deferred tax assets that declined in value. 

JPMorgan reported a $2.4 billion fourth-quarter loss because of the new tax law, and Citigroup reported a $22 billion loss. The CEOs of each firm nonetheless praised the potential long-term benefits of the law. 

Analysts expect Goldman Sachs to report non-adjusted earnings of -$6.05 a share after accounting for the effects of the tax law and other one-time gains and costs. 

Here's what else Wall Street will be looking for:

• Revenues of $7.6 billion
• Adjusted net income of $1.96 billion
• Non-adjusted net income of -$2.35 billion
• The FICC business: Goldman Sachs' commodities business had a terrible time of it in 2017, and the broader business struggled too. 

One last item to be on the lookout for: Any losses related to scandal-wracked South African retailer Steinhoff International.

A group of Wall Street banks loaned money last year to an entity controlled by Christo Wiese, the former chairman of Steinhoff International, whose stock has been ravaged by an accounting scandal.

Citi, HSBC, Goldman Sachs, and Nomura initially arranged the $1.8 billion loan, backed by some 628 million shares of Steinhoff's now-crippled stock, and subsequently sold off parts of the loan to other banks.

JPMorgan reported a $273 million hit to its fourth-quarter earnings from the deal.

Though Citi didn't name the single client responsible for a $130 million wipeout in in its equities-trading revenue, it's also likely attributable to Steinhoff. 

Other banks, including Goldman Sachs, are expected to have exposure to Steinhoff as well. 

Join the conversation about this story »

NOW WATCH: A crypto expert explains the difference between the two largest cryptocurrencies in the world: bitcoin and Ethereum

• The corporate tax rate is being slashed to 20% from 35% under the Trump tax plan that took effect this year.
• Companies are also getting a repatriation holiday to bring cash from foreign entities back home.
• The cuts are expected to boost US equities in 2018, but it's not immediately clear which specific stocks stand to benefit most.
• Business Insider has conducted a proprietary five-part analysis in order to identify which stock is truly the king of tax reform.

If Wall Street strategists can agree on one thing as 2018 gets underway, it's that the recently-passed GOP tax plan is going to boost the stock market.

The average year-end price target for the S&P 500 is 2,950, which is roughly 6% higher than current levels. And that's after the equity benchmark has already started 2018 on a blistering pace, climbing as much as 5% after rising in eight of the year's first 10 days.

That's all well and good, but for investors looking to put money in single stocks, it's getting increasingly difficult to identify outperformers with the broader market set to rally so much.

That's where we come in.

We've sorted through all of the guidance provided by Wall Street experts and developed a methodology that's helped us to arrive at the one stock that should emerge as the king of tax reform. What follows is a breakdown of our quest to crown this champion — one that stock traders should be taking a long, hard look at this year.

And we'll give you a hint: It's a financial stock that's already up 40% in the past 12 months.

Step 1: Identify the stocks with the highest earnings reinvested overseas

Companies that get a large amount of their profits from overseas have long been expected to see one of the biggest windfalls from the GOP tax reform. This is because of the one-time repatriation tax holiday included in the plan, which will incentivize corporations to bring that cash back stateside.

It's a good starting point, because it's an area of the tax plan that's expected to yield a clear benefit for these companies — one that many experts see outweighing the impact of a lower effective tax rate.

In order to get the ball rolling, we turned to a Goldman Sachs basket of 50 stocks with the highest earnings reinvested overseas. The index contains companies from eight of the 11 main S&P 500 sectors, and features the likes of Microsoft, Apple, General Electric, Pfizer, Citigroup and JPMorgan, which have the highest total out of the already-select group.

Companies remaining: McDonald's, Priceline, Nike, Procter & Gamble, PepsiCo, Coca-Cola, Wal-Mart, Philip Morris, Mondelez, Exxon Mobil, Chevron, Citigroup, JPMorgan, Bank of America, Berkshire Hathaway, Morgan Stanley, Pfizer, Johnson & Johnson, Merck, Gilead Sciences, Amgen, Medtronic, AbbVie, Eli Lilly, Bristol-Myers Squibb, Abbott Laboratories, Danaher, Celgene, Thermo Fisher Scientific, General Electric, United Technologies, Honeywell, Eaton, Caterpillar, 3M, Ingersoll-Rand, Microsoft, Apple, IBM, Cisco, Alphabet, Oracle, Intel, Qualcomm, Hewlett Packard Enterprise, TE Connectivity, HP, Western Digial, Corning, Praxair

With this 50-company universe established, it was time to overlay another variable: the earnings boost that's expected for the market's most highly-taxed companies.

Step 2: Identify the companies in that universe that pay the most in taxes

This is the other part of tax reform's two-headed monster of corporate profit growth, and one that's important to look at in tandem with the repatriation basket. Simply put, the companies paying the most in taxes have the most to gain from a cut.

Investors have been attempting to adjust for this in recent months, but Wall Street firms like JPMorgan think there's still ample room to run.

"Despite the trade's outperformance in the run up to the passage of the tax legislation, we expect further upside as the equity impact of tax reform is not fully priced-in," Dubravko Lakos-Bujas, JPMorgan's head of US equity strategy, wrote in a recent note.

With this degree of upside expected, investors would be well-served to identify the most highly-taxed companies out of those in the previous section, which feature high earnings reinvested overseas.

For the purposes of this exercise, using data compiled by Bloomberg, we've whittled down the 50 stocks listed above to the 10 that pay the most in taxes (trailing 12-month effective tax rate in parentheses).

Companies remaining: Caterpillar (46%), McDonald's (32%), Walmart (32%), Citigroup (31%), Bank of America (29%), Corning (29%), Berkshire Hathaway (29%), Morgan Stanley (29%), Coca-Cola (28%), Praxair (28%)

Step 3: Identify the remaining companies that have the strongest analyst outlooks

This step is very straightforward: which stocks do analysts think have the most upside?

In order to do this, we looked at the consensus 12-month price target for each of the above 10 stocks. We then calculated the percentage move the stock would have to see to achieve that level. That helped use narrow the group down to the final five (12-month expected return in parentheses).

Companies remaining: Morgan Stanley (+8.3%), McDonald's (6.9%), Citigroup (+6.6%), Coca-Cola (+5.5%), Bank of America (+4.9%)

Note: Berkshire Hathaway was removed from contention at this point because it's only covered by a meager six analysts, which undercuts the meaningfulness of the stock's price target, and by extension its expected return.

Step 4: Overlay sector forecasts from Wall Street strategists

While it's tempting to go ahead and pick Morgan Stanley as the king of tax reform, since it had the biggest share upside out of the five remaining stocks, our work is not done yet. The final step involves assessing 2018 outlooks published by various Wall Street equity strategists, whose job it is to identify specific sectors and stocks that will outperform. 

When comparing the two industries remaining — consumer and financials — there's one clear winner when it comes to strategist outlooks: large banks. Based on a wide range of comments, we conclude that the nation's biggest lenders are in an enviable position that will see profits climb along with interest rates. And with the Federal Reserve widely expected to continue tightening monetary policy, benchmark lending rates are poised to rise.

When you combine that interest rate sensitivity with tax cuts and the prospect of scaled-back regulation, banks look very appealing in 2018 — which brings us to our final three.

Companies remaining: Morgan Stanley, Citigroup, Bank of America

Step 5: Make sure the pick comes from the Goldman Sachs Conviction List

Before we unveil our winner, let it be known that you probably can't go wrong with any of our three finalists. But this is a single-stock exercise, and a champion must be crowned.

For our final screen, we look at Goldman Sachs' Conviction List for financial stocks. This is an elite group of companies that not only have the equivalent of the buy rating, but are also emphasized by the firm to an even greater degree. And it contains only one of our three finalists.

That stock is Bank of America, which is hereby declared the Business Insider King of Tax Reform.

Now, a quick disclaimer and a call-out for your ideas. First, we're not financial analysts and so — no — we are not telling you to buy this stock. Do it, don't do it, discuss it with your financial adviser or someone, etc. Most importantly though, let us know what you think of that pick by emailing [email protected].

SEE ALSO: A dangerous trade that reminds experts of the 1987 market crash is riskier than ever

Join the conversation about this story »

NOW WATCH: The chief global strategist at Charles Schwab says a bitcoin crash won't infect the rest of the market

Bitcoin startup Blockstream has introduced a micropayment processing system that it claims makes it simpler to build bitcoin payment apps.

Bank of America Merrill Lynch is expected to release results from its fourth-quarter at around 6:45 am Wednesday. 

Wall Street analysts are expecting the firm to report adjusted earnings of $0.45 a share.

Like the other big banks, Bank of America is expected to take a hit from the recently passed tax law, thanks to a combination of taxes on repatriated cash and deferred tax assets that declined in value. 

JPMorgan reported a $2.4 billion fourth-quarter loss because of the new tax law, and Citigroup reported a $22 billion loss. The CEOs of each firm nonetheless praised the potential long-term benefits of the law. 

Analysts expect Bank of America to report non-adjusted earnings of $0.14 a share after accounting for the effects of the tax law and other one-time gains and costs. 

Here's what else Wall Street will be looking for:

• Revenues of $21.5 billion
• Adjusted net income of $4.6 billion
• Higher net interest income thanks to loan growth
• Lower trading revenues, consistent with the trend across Wall Street
• Tax reform: Approximately $3 billion in losses from revaluing deferred tax assets

One last item to be on the lookout for: Any losses related to scandal-wracked South African retailer Steinhoff International.

A group of Wall Street banks loaned money last year to an entity controlled by Christo Wiese, the former chairman of Steinhoff International, whose stock has been ravaged by an accounting scandal.

Citi, HSBC, Goldman Sachs, and Nomura initially arranged the $1.8 billion loan, backed by some 628 million shares of Steinhoff's now-crippled stock, and subsequently sold off parts of the loan to other banks.

JPMorgan reported a $273 million hit to its fourth-quarter earnings from the deal.

Though Citi didn't name the single client responsible for a $130 million wipeout in in its equities-trading revenue, it's also likely attributable to Steinhoff. 

Other banks, including Bank of America, are expected to have exposure to Steinhoff as well. 

Join the conversation about this story »

NOW WATCH: Netflix is headed for a huge profit milestone in 2018

The post South Korea Military Blocks Soldiers’ Access to Cryptocurrency Trading appeared first on CCN

South Korea’s national defense ministry has begun blocking access to online cryptocurrency trading platforms in military bases. As Korean financial officials ponder a wider clampdown on domestic cryptocurrency trading markets, the country’s military is already weighing up and enforcing its own measures to keep soldiers from trading cryptocurrencies like bitcoin, the Korea Times reports. Since

The post South Korea Military Blocks Soldiers’ Access to Cryptocurrency Trading appeared first on CCN

• Karen Ward, the chief market strategist for the UK and Europe at JPMorgan's $1.7 trillion asset management arm, believes that slow business investment could hurt the British economy in 2018.
• Brexit uncertainty is stopping businesses from investing, which in turn, is stifling growth, Ward, a former key adviser to Chancellor Philip Hammond, said.
• Ward stressed the importance of a transition deal "sooner rather than later" to protect the economy from uncertainty.
• Broadly speaking, however, the UK economy is looking fairly solid, and things should "brighten" up by the end of the year.

LONDON — Lagging business investment caused by Brexit uncertainty will remain one of the biggest drags on the economy this year, according to one of the top strategists at JPMorgan's $1.7 trillion asset management arm.

Karen Ward, JPMAM'schief market strategist for the UK and Europe, said in an interview that while she expects the UK's economic picture to "brighten" by the second half of the year, but Brexit is one big blot on the landscape.

The British economy has slowed since the 2016 Brexit vote. In the second quarter of 2017, the UK economy grew slower than that of Greece. Much of that slowdown has often been attributed to "Brexit uncertainty" — the idea that businesses and individuals are delaying major economic decisions until they have some more clarity about what life outside the bloc is actually going to look like.

That uncertainty is set to continue, and will have a particular impact on investment, Ward said in an interview shortly after the release of JPMorgan Asset Management's quarterly Guide to the Markets.

"One area of weakness in the UK, certainly relative to what we're seeing elsewhere, is on investment. I think clearly the uncertainty with regards to the Brexit negotiations is playing a significant role there," she said.

"The question for thinking about activity throughout the year, particularly what happens to investment spending is whether the prime minister manages to capitalise on the momentum that she achieved in the final weeks of last year, and actually manages to move towards an agreement on transition."

"If we manage to agree a transition, that at least means for businesses, their hard stop for a change in relationship moves from March 2019 to further down the line.

"That will refocus their efforts back onto their day to day business, rather than the uncertainty of [what happens when the UK leaves the EU in] 2019."

"Businesses aren't going to feel really confident about significant investments, certainly long term investments, unless we get some kind of agreement and progression, not just on transition, but a movement towards some terms of what the final agreement will look like," Ward added.

Prior to the referendum, Ward worked as the chief European economist for HSBC, but left in October 2016 to become the head of Chancellor Philip Hammond's newly minted Council of Economic Advisers, effectively making her one of Hammond's closest confidants when it comes to economic policy. She then left that role in late 2017, to take up her current position with JPMorgan Asset Management.

While she believes transition will help to alleviate the negative impacts uncertainty is having on investment, and therefore economic growth, Ward also argues that its impact will be limited unless something can be agreed in fairly short order.

"The value of announcing that transition is near term. The closer we get to March, the less value that announcement serves. I think it needs to be sooner rather than later," Ward said.

"To get the maximum bang for the buck it [a transition announcement] it needs to go alongside some sort of, if not agreement on what the final relationship will look like, at least clear progression that there is common ground on certain issues and that the dialogue is constructive and amicable."

That views echoes many in the financial markets, some of whom have argued that the UK's failure to agree the terms of a transition deal before the end of last year will force major financial institutions to trigger contingency plans and shrink their UK operations, harming the country's macroeconomic future.

Jobs, companies, and capital are all expected to flee the UK, and potentially even Europe, unless a deal is struck soon, as companies need at least a year, and possibly as long as 18 months, to establish new subsidiaries on the continent that will allow them to continue operating across the bloc after Brexit.

Without some clarity over a transitional deal, firms are likely to trigger their worst case scenario plans, most of which — especially in the case of financial services firms — are believed to include large scale staff shifts.

A 'brighter' future for the economy

There may be the potential for a further slowdown in investment, but Ward believes that on a broad basis, the UK economy should be fairly solid in 2018, with improvements coming by the end of the year.

"I think by the second half of the year, things could look a bit brighter in the UK. Obviously the squeeze in 2017 was very much centred around the pressure on real wages, because inflation picked up and wage growth didn't go with it so you had this real acute squeeze on real wages.

"Sterling is up quite a significant amount — at least against the dollar — relative to where it was in 2016. That could mean that as we move through the course of the year, although I think it will take a while to see, the headline inflation figure should start to ease down, probably about the same time as we're seeing something slightly better on wage growth."

"We could see the real wage picture improve. That should see consumer confidence improve a little bit, and perhaps a little bit better retail spending and consumption will support GDP," she continued.

Ward's forecast when it comes to inflation seems like it may be coming true, and less than 24 hours after she spoke to Business Insider, ONS data showed inflation falling in the month of December from 3.1% the previous month to 3%.

Productivity could also end 2018 as a bright spot for Britain. Growth in productivity in the UK >been virtually non-existent in the last 10 years, leading Bank of England Governor Mark Carney in December 2016 to describe the last 10 years as "the first lost decade since the 1860s" when "Karl Marx was scribbling in the British Library."

That might change in 2018, but only if a quick transition deal helps boost business investment.

"If we do move into this year and see some pick up in business investment as employment is stable, we could see some sort of recovery in productivity. That's one of the big themes we're talking about this year globally, because if productivity doesn't recover, we should be much more worried about inflation," Ward told BI.

Join the conversation about this story »

NOW WATCH: A crypto expert explains the difference between the two largest cryptocurrencies in the world: bitcoin and Ethereum

• Cryptocurrency market stabilises after Tuesday's "bloodbath."
• But bitcoin, down 2%, and ethereum, down 5%, still suffering.
• Putin is proposing tighter regulation of the cryptocurrency space.

LONDON — Global cryptocurrency markets have stabilised slightly on Wednesday after a major sell-off, but the two biggest tokens are still losing ground.

All of the major cryptocurrencies suffered double-digit falls on Tuesday in what commentators described as a cryptocurrency "bloodbath." The selloff was thought to be triggered by concerns about regulation in the Asian market.

Cryptomarkets have stabilised somewhat on Wednesday morning. Ripple, the third biggest cryptocurrency, is up 0.7% against the dollar to $1.15 at 7.45 a.m. GMT (2.45 a.m. ET). Bitcoin Cash, the fourth biggest cryptocurrency, is up 3.5% against the greenback to $1,819.39 at the same time.

But bitcoin and ethereum, the two biggest cryptocurrencies by market capitalisation, are still falling. Bitcoin is down 2% against the dollar at 7.50 a.m. GMT (2.50 a.m. ET), while ethereum is down 5% to $1,010.88.

You can follow all the like cryptocurrency price movements on Markets Insider.

The continued slump comes amid reports that Russia could be about to impose stricter regulations on the sector. Russian news service TASS reported last week that Putin said "legislative regulation will be definitely required in future" for cryptocurrencies.

"It is known that the cryptocurrency is not backed by anything. It cannot be a store of value. No material valuables are behind it and it is not secured by anything. It can be a settlement medium to a certain degree and in certain situations. This is done quickly and efficiently," Putin said, according to TASS. He compared cryptocurrencies to shared equity construction schemes. Putin's comments were picked up by widely read cryptocurrency news website CoinDesk on Wednesday.

Join the conversation about this story »

NOW WATCH: A crypto expert explains the difference between the two largest cryptocurrencies in the world: bitcoin and Ethereum

• Cryptocurrency market stabilises after Tuesday's "bloodbath."
• But bitcoin, down 2%, and ethereum, down 5%, still suffering.
• Putin is proposing tighter regulation of the cryptocurrency space.

LONDON — Global cryptocurrency markets have stabilised slightly on Wednesday after a major sell-off, but the two biggest tokens are still losing ground.

All of the major cryptocurrencies suffered double-digit falls on Tuesday in what commentators described as a cryptocurrency "bloodbath." The selloff was thought to be triggered by concerns about regulation in the Asian market.

Cryptomarkets have stabilised somewhat on Wednesday morning. Ripple, the third biggest cryptocurrency, is up 0.7% against the dollar to $1.15 at 7.45 a.m. GMT (2.45 a.m. ET). Bitcoin Cash, the fourth biggest cryptocurrency, is up 3.5% against the greenback to $1,819.39 at the same time.

But bitcoin and ethereum, the two biggest cryptocurrencies by market capitalisation, are still falling. Bitcoin is down 2% against the dollar at 7.50 a.m. GMT (2.50 a.m. ET), while ethereum is down 5% to $1,010.88.

You can follow all the like cryptocurrency price movements on Markets Insider.

The continued slump comes amid reports that Russia could be about to impose stricter regulations on the sector. Russian news service TASS reported last week that Putin said "legislative regulation will be definitely required in future" for cryptocurrencies.

"It is known that the cryptocurrency is not backed by anything. It cannot be a store of value. No material valuables are behind it and it is not secured by anything. It can be a settlement medium to a certain degree and in certain situations. This is done quickly and efficiently," Putin said, according to TASS. He compared cryptocurrencies to shared equity construction schemes. Putin's comments were picked up by widely read cryptocurrency news website CoinDesk on Wednesday.

Join the conversation about this story »

NOW WATCH: A crypto expert explains the difference between the two largest cryptocurrencies in the world: bitcoin and Ethereum

The post Cryptocurrency Market Continues to Slump, Ethereum, Ripple, et al. Suffer 20%+ Fall appeared first on CCN

The cryptocurrency market has continued to slump over the past 24 hours, as major cryptocurrencies including Ripple, Ethereum, and Bitcoin Cash recorded over 20 percent in daily losses. Since January 15, the market valuation of cryptocurrencies declined from $700 billion to $500 billion within a 48-hour span. In the past few hours, the cryptocurrency market

The post Cryptocurrency Market Continues to Slump, Ethereum, Ripple, et al. Suffer 20%+ Fall appeared first on CCN

The post Cryptocurrency Market Continues to Slump, Ethereum, Ripple, et al. Suffer 20%+ Fall appeared first on CCN

The cryptocurrency market has continued to slump over the past 24 hours, as major cryptocurrencies including Ripple, Ethereum, and Bitcoin Cash recorded over 20 percent in daily losses. Since January 15, the market valuation of cryptocurrencies declined from $700 billion to $500 billion within a 48-hour span. In the past few hours, the cryptocurrency market

The post Cryptocurrency Market Continues to Slump, Ethereum, Ripple, et al. Suffer 20%+ Fall appeared first on CCN

The Asian nation has been a big adopter of virtual currency, so developments there have a global impact.

Good morning! Here's what you need to know on Wednesday. 

1. Odeon‎, Britain's biggest cinema chain, is preparing to hire bankers to oversee a blockbuster summer flotation on the London Stock Exchange, Sky News reports. Sources said that AMC was likely to try to raise well over £500m by selling shares in Odeon, which also owns the Nordic cinema business in Scandinavia.

2. Lenders to Carillion, the construction giant which collapsed into liquidation on Monday, are facing losses of up to £2bn, making it one of the costliest corporate insolvencies for years, Sky News reports. Sky said a complex series of financing arrangements for subsidiaries of Carillion mean that the total exposure of its banking syndicate is far higher than the £900m headline debt figure carried by the listed construction group.

3. The bill facing BP for the Deepwater Horizon disaster will top $65 billion after higher compensation settlements than had been expected forced it to book a fresh $1.7 billion charge, the Times reports. The oil major said that the average value of compensation payments being awarded to businesses affected by the disaster had soared sevenfold in the fourth quarter.

4. The accounting watchdog has warned that it may launch an investigation into KPMG over its audit of Carillion, the construction and services group that has collapsed into liquidation putting thousands of jobs at risk, the Times reported. The Financial Reporting Council said that it would "follow due process and will make a further statement on this matter shortly."

5. Boris Johnson has warned Theresa May that the Government must make a public commitment to giving the NHS an extra £100million a week after Brexit if the Tories are to beat Jeremy Corbyn at the next election, the Telegraph reports. The Foreign Secretary believes that the Government must adopt the flagship Vote Leave pledge and spend £5.2billion a year that would have been paid into Brussels on the health service instead.

6. The 10 biggest cryptocurrencies by market capitalisation plunged on Tuesday, with all suffering double-digit percentage losses. Bitcoin fell more than 25%, crashing through $13,000, $12,000, and $11,000 levels, and is still falling as of writing. The decline appears to have spooked the market, with other coins selling off at the same time. Ethereum dropped 31% to $871.

7. Nearly a decade after a merger attempt collapsed, the trade show organisers Informa and UBM are again in talks about a combination, investors were told this evening according to the Telegraph. The pair were forced to reveal their rekindled romance at the end of trading on the stock exchange, after rumours filtered through the market during the day and drove 5.2pc increase in UBM’s shares.

8. A group of UK nationals living in the Netherlands are going to court to challenge the right of the British government and the European commission to negotiate away their rights as EU citizens in the Brexit talks. The claimants will argue that the rights of UK citizens are independent of the country’s EU membership, according to legal documents seen by the Guardian.

9. Uber has introduced a cap on how many hours its drivers in the UK can work after criticism that long shifts are putting passengers at risk, the Telegraph reports. Drivers who work for 10 hours will be locked out of the app for a six-hour break, the ride-hailing app said. However the limit still allows drivers to work for far more than 60 hours a week.

10. And finally... Consumers are calling on Tesco to backtrack on changes it has introduced to its Clubcard scheme, labelling them as unfair and saying that they will disadvantage thousands of loyal customers, the Independent reports. The UK’s biggest retailer’s popular Clubcard scheme offers shoppers the chance to collect points for money they spend in store and online. These points can then be changed into vouchers, redeemable on things such as restaurant meals at Pizza Express, Prezzo and Zizzi.

Join the conversation about this story »

NOW WATCH: These are the watches worn by the smartest and most powerful men in the world

You've heard of proof of work, but what about proofs of proofs of work? A complex notion, the research on "Non-Interactive Proofs of Proofs of Work," or NiPoPoW, released in October, has received very little attention so far but is heralded as breaking through one of the major roadblocks that has stalled the widely anticipated […]

Announced Tuesday, the investment by Ripple executives in Omni feels ill-timed as the price of the coin has fallen more than 40 percent.

The post Cryptocurrency-Based Stocks Fall Amid Market Downturn appeared first on CCN

The once celebrated stocks of companies with bitcoin or blockchain exposure are falling alongside the top coins today. Corporate America has been looking to the blockchain and cryptocurrencies as a way to resonate with investors, a strategy that while profitable during the best of blockchain times has proven to backfire when cryptocurrency prices suffer declines. Meanwhile,

The post Cryptocurrency-Based Stocks Fall Amid Market Downturn appeared first on CCN