NBA Star Kevin Durant Partners With Coinbase, Bitcoin and Ethereum Recover, Visa Launches Crypto Consulting

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Bitcoin and Ethereum saw significant declines on Wednesday afternoon, exacerbating the recession that began in the days after Christmas. By Thursday morning, Bitcoin had dropped below $43,000 and Ethereum had fallen below $3,400.

The drop in prices came after the release of the minutes of the Federal Reserve’s meeting in December, which indicated a decline in monetary measures to boost the economy as it continues to improve.

Meanwhile, Kosovo this week banned cryptocurrency mining to provide electricity. Matt Damon appeared in a cryptic TV commercial during Sunday’s NFL games, which led to some heated response on Twitter. Crypto.com and FTX will run the first Super Bowl ads this year in an effort to reach a more mainstream audience.

Here’s more about the latest cryptocurrency news that investors should know:

  • On Tuesday, the Kosovo government imposed a ban on cryptocurrency mining in a bid to reduce electricity consumption, according to a Reuters report. The country is currently facing its worst energy crisis in a decade due to outages of coal-fired power plants and rising import prices.
  • Matt Damon has people Social media rage, this time to star in an ad for a crypto-trading app in which he compares buying cryptocurrency to some of history’s greatest achievements – from mountaineers ascending Mount Everest to astronauts exploring space. Damon is the latest example of celebrities, from Kim Kardashian to Tom Brady, who excel at coding.
  • Cryptocurrency exchanges Crypto.com and FTX are planning to run ads during the Super Bowl, the country’s most-watched annual television event, according to a report from the Wall Street Journal. It’s further evidence of cryptocurrency companies looking to capitalize on the growing interest from the mainstream.

Bitcoin is the largest cryptocurrency by market capitalization, and it is a good indicator of the crypto market in general, as other coins like Ethereum (and altcoins) tend to follow their trends. Although Bitcoin recently hit a new all-time high, it was a very natural increase for cryptocurrencies, which are notorious for their volatility. This does not mean that investors should take fluctuations in either direction seriously, which is also why investment experts recommend against making any major investment changes based on these normal fluctuations.

Cryptocurrency is still very new, and everything from innovation to regulation can have a huge impact on investors. Here’s how you can invest smartly, regardless of the news or fluctuations in the price of Bitcoin.

How should investors deal with volatility

Cryptocurrency volatility is nothing new, and you should be comfortable with that if you decide to invest.

The volatility can be attributed to an “immature market,” says Olly Leitch, Learning Editor at Coindesk, a cryptocurrency news outlet. Anything from a celebrity tweet to new federal regulations can drive prices up.

“If Elon Musk puts the hashtag Bitcoin in his Twitter bio, he sends Bitcoin at 10%,” says Leech.

This unpredictability is part of the reason why investment experts warn against investing huge amounts of your portfolio in a risky asset like crypto. Many recommend keeping your crypto holdings to less than 5% of your total portfolio.

For new investors, the daily volatility can seem intimidating. But if you’ve invested with a buy-and-hold strategy, you don’t have to worry about dips, says Humphrey Yang, the personal financial expert in charge of Humphrey Talks. Yang recommends a simple solution: Don’t look at your investment.

“Don’t check it out. This is the best thing you can do. If you let your emotions get in too much, you might sell out at the wrong time, and make the wrong decision,” says Yang.

This is the traditional “set it and forget it” advice that many traditional long-term investors follow. If you can’t join in, and the extreme drops continue to worry you, you may have a lot of riding on your cryptocurrency investments.

“The most important thing any investor can do, whether they are investing in Bitcoin or stocks, is not only to have a plan, but also to have a plan that they can stick to,” says Douglas Bonebarth, CFP and President of Bone Fide Wealth. “While buying on the dip may be attractive, especially with an asset you really like, it may not always be the best idea at the moment.”

Other recent crypto news

  • Kevin Durant and his company Thirty Five Ventures have signed a multi-year marketing deal with Coinbase, according to a report by sports business news site Boardroom.TV. Durant, the star of the Brooklyn Nets, will help promote cryptocurrency exchange across his businesses and become a prominent advertising face for the brand. Durant’s partnership with Coinbase is the latest example of high-profile mathematicians jumping on the wave of digital assets.
  • Visa launches new advisory and advisory services to advise its clients on cryptocurrency. The payments giant recently said in a press release that its cryptocurrency advisory practice will advise financial institutions, retailers and other businesses to help them better understand the “crypto ecosystem.” While the move does not directly affect consumers, it is further evidence that the cryptocurrency is gaining more mainstream adoption within US businesses – which has an overall positive impact on the value of investors’ crypto holdings.
  • Gensler said again in a recently published interview with the Wall Street Journal that the United States needs more crypto regulation. In the interview, Gensler said that cryptocurrency fits within the “broad jurisdiction” of the SEC. “I said publicly, ‘Come on, work with the SEC, sign up.’ It’s really important to have investor protection.” The comments echo remarks Gensler made before the Securities and Exchange Commission’s Investor Advisory Committee earlier this month.
  • Executives from Coinbase, Circle, Stellar, FTX and other crypto firms testified at a recent congressional hearing. Led by California Democratic Representative Maxine Waters, the hearing was titled “Digital Assets and the Future of Finance: Understanding the Challenges and Benefits of Financial Innovation in the United States.” The US House of Representatives Financial Services Committee has increasingly focused on cryptocurrencies and their risks for US consumers and investors.
  • The Los Angeles Times reported Tuesday that Los Angeles’ Staples Center — home to professional sports teams including the Lakers and Clippers of the NBA — will be renamed the Crypto.com Arena starting on Christmas Day. The Los Angeles Times reports that Crypto.com will pay $700 million for the naming rights.
  • The infrastructure bill signed by President Biden includes provisions confirming tax reporting requirements for cryptocurrency exchanges, which have implications for investors. “I think a lot of people are waiting for a big tax surprise,” South Carolina-based CFP Grant Maddox previously told us.
  • The Biden administration has proposed legislation that would effectively treat stablecoin issuers as banks. Senior US officials have said for months that more crypto regulation was necessary, and this week’s report takes it a step further by outlining what it could look like.
  • Jelena McWilliams, president of the Federal Deposit Insurance Corporation (FDIC), told Reuters that senior US officials are looking for clearer ways that banks and their customers can hold cryptocurrencies. If we do not bring this activity inside the banks, it will develop outside the banks. “Federal regulators will not be able to regulate this,” McWilliams told Reuters.
  • Cryptocurrency debuted on the New York Stock Exchange in October in the form of an ETF linked to Bitcoin. The fund is traded under the symbol BITO, and is the first Securities and Exchange Commission (SEC) approved investment product linked to crypto assets. But the fund does not directly hold bitcoin – only bitcoin futures. This is an important distinction that investors should be aware of before making a purchase.
  • MasterCard has announced that it will partner with Bakkt to offer a “wide range of cryptocurrency solutions and services” to US merchants, banks and fintech companies that “will in turn experience expanded access to the digital asset ecosystem,” according to a press release.
  • Cryptocurrency exchange Coinbase recently announced its partnership with Facebook to pilot a new digital wallet, called Novi. The wallet will enable individuals to send and receive money abroad “instantly, securely and without fees,” according to a Coinbase blog post. The popular cryptocurrency exchange has also partnered with the NBA for a sponsorship deal, marking another major partnership for the platform.
  • Coinbase has also announced that it will create Coinbase NFT, “a peer-to-peer marketplace for minting, buying, displaying, and discovering NFTs.” The announcement follows a quarrel with the Securities and Exchange Commission over another Coinbase product, Coinbase Earn, last month.
  • US Federal Reserve Chairman Jerome Powell spoke at a recent House Financial Services Committee meeting and clarified comments from a July hearing where he expressed his interest in regulating cryptocurrency. Powell says he has “no intention” of banning cryptocurrencies.
  • Vitalik Buterin, the creator of the popular cryptocurrency Ethereum, has been named to the TIME 100 Most Influential People of 2021. Alexis Ohanian, former CEO of Reddit, wrote of Buterin: “What makes Vitalik so special, though, is that he is a builder of Not everyone can come up with all the uses of Ethereum, but it took one person’s idea to get started. From there, a new world opened up, and it gave rise to new ways to take advantage of blockchain technology.”

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