Tag: Risk

JPMorgan says Bitcoin is a risk indicator for investor sentiment

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Key Takeaways JPMorgan’s Jack Caffrey sees Bitcoin as a risk indicator. The analyst finds it interesting when Bitcoin lags while gold rallies, questioning its “risk-free” status. Share this article Jack Caffrey, JPMorgan’s portfolio manager, said Tuesday that Bitcoin is one of several risk indicators investors can watch to gauge market risk. Speaking with CNBC’s Squawk Box this morning, he highlighted the recent divergence between Bitcoin and gold, noting that weeks of Bitcoin weakness alongside rallies in gold have raised questions about Bitcoin’s role as a “risk-free” asset. The portfolio manager…

Arthur Hayes warns Tether’s Bitcoin and gold bet exposes it to major downside risk

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Key Takeaways Arthur Hayes suggests Tether is in the early stages of a massive interest-rate trade, betting that Fed cuts will hurt Treasury income but send Bitcoin and gold higher. He argues that a major drop in Bitcoin and gold positions could wipe out Tether’s equity. Share this article BitMEX co-founder Arthur Hayes argues that Tether is positioning itself for an upcoming Fed rate-cut cycle by shifting a greater share of its reserves into Bitcoin and gold. Hayes wrote on X on Saturday that Tether’s most recent attestation suggests the…

South Africa’s Central Bank Flags Crypto, Stablecoins as Financial Risk

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The South African Reserve Bank issued its second financial stability report for 2025, identifying digital assets and stablecoins as a new risk as the number of users in the country continues to grow. In a report released on Tuesday, South Africa’s central bank identified “crypto assets and stablecoins” as a new risk for technology-enabled financial innovation. The bank reported that the number of combined users on the country’s three largest crypto exchanges reached 7.8 million as of July, with about $1.5 billion held in custody at the end of 2024.…

VanEck CEO Warns Quantum Computing Poses Risk to Bitcoin

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Bitcoin’s encryption and privacy could be at risk from quantum computing, but it is still a good investment for now, says Jan van Eck, CEO of investment manager VanEck. “There is something else going on within the Bitcoin community that non-crypto people need to know about,” van Eck told CNBC on Saturday. “The Bitcoin community has been asking itself: Is there enough encryption in Bitcoin? Because quantum computing is coming.” He said that the company believes in Bitcoin (BTC), but it was around before the cryptocurrency launched and “will walk…

Bitcoin liquidation risk spikes with nearly $2B in longs at stake if price falls to $80K

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Key Takeaways Nearly $2 billion in leveraged Bitcoin long positions are at risk of liquidation if price falls to $80,000. The current exposure reveals high-risk concentration within Bitcoin’s derivatives markets. Share this article Bitcoin traders are facing heightened liquidation risk, with nearly $2 billion in leveraged long positions vulnerable to forced selling if the cryptocurrency’s price falls to $80,000. The substantial exposure highlights the concentrated risk in Bitcoin’s derivatives markets, where traders using borrowed funds to amplify their bets face automatic position closures when prices move against them. Bitcoin traded…

XRP At Risk Of Another 55% Drop If Bitcoin Continues To Sell-Off

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Key takeaways: XRP (XRP) extended its downtrend on Friday, dropping 3% over the last 24 hours to trade at $1.93. The inability to hold above $2 now puts the altcoin’s recovery possibilities in question, with traders asking how much further it can fall. XRP/USD one-hour chart. Source: Cointelegraph/TradingView Classic XRP pattern targets $0.88 The XRP/USD pair has formed a megaphone pattern in the weekly time frame, suggesting that a deeper correction was in store for the altcoin.  A megaphone pattern, also known as a broadening wedge, forms when the price…

Crypto ETPs See $2B Weekly Outflows as Global Risk Appetite Fades

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Crypto investment products logged their largest weekly outflows since February, shedding $2 billion as global risk appetite declined.  Crypto exchange-traded products (ETPs) saw $2 billion in outflows last week, up by nearly 71% from $1.17 billion recorded the previous week, CoinShares reported on Monday. This marks the third consecutive week of outflows, extending the cumulative outflow streak to $3.2 billion.  CoinShares’ head of research, James Butterfill, attributed the outflows to monetary policy uncertainty and selling by crypto-native whales. As a result, total assets under management (AUM) in crypto ETPs decreased…

Bitcoin Faces No Quantum Risk for 20–40 Years

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Adam Back, the cryptographer and cypherpunk cited in the Bitcoin white paper, said Bitcoin is unlikely to face a meaningful threat from quantum computing for at least two to four decades. Responding to an X user on Nov. 15 who asked whether Bitcoin (BTC) is at risk, Back wrote that “probably not for 20–40 years,” adding that there are already post-quantum encryption standards approved by the National Institute of Standards and Technology (NIST) that Bitcoin could implement “long before cryptographically relevant quantum computers arrive.” Source: Adam Back The discussion began…

ECB Flags Stablecoins as Rising Economic Risk

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The European Central Bank (ECB) may soon be compelled to view stablecoins not just as a regulatory concern, but also as a potential source of macroeconomic shocks, according to Dutch central bank governor Olaf Sleijpen. In a Financial Times interview, Sleijpen warned that the fast-growing dollar-pegged stablecoins could become systemically relevant to Europe’s financial ecosystem. He said that if the tokens were to destabilize, they could affect financial stability, the wider economy and even inflation. “If stablecoins are not that stable, you could end up in a situation where the…

Bitcoin Price Weakness Likely to Continue Until Risk Off Mood Peaks

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Key takeaways: Bitcoin softened as tech sector weakness spilled into crypto markets, reducing risk appetite and limiting demand for bullish leverage. Persistent spot Bitcoin ETF outflows and targeted sales from a 2011 holder exacerbated downward pressure. Bitcoin (BTC) is down 11% since Monday, falling to a six-month low of $94,590 on Friday. Bitcoin derivatives continue to signal weakness, even as several large tech names posted similar declines during the week. Traders are now asking whether the market has already found a floor and what must happen before confidence returns. BTC…