Goodnews: Bitcoin storms back

Bitcoin has come all the way back
from Thursday’s steep slide. The
cryptocurrency tumbled as much as
18.5% to $2,076 a coin after riskier
assets fell following the Fed rate hike.
On Friday, it’s trading up 3.5% at

The selling on Thursday began when
bitcoin-mining firm Bitmain outlined
its “contingency plan .”
Coindesk explained it best: “Most
notably, the proposal would dedicate
mining resources to hard forking the
network to a rule set with a larger
block size – an upgrade that would
likely result in two bitcoin networks
and two tradable bitcoin assets.”

Riskier assets were already feeling
some heat after the Federal Reserve
raised its benchmark interest rate 25
basis points to a range of 1% to
1.25% on Wednesday.
The writing had been on the wall.
Bitcoin gained about 180% from the
beginning of April through the middle
of June. That run prompted tech
billionaire Mark Cuban to call bitcoin
a “bubble .”

Additionally, Goldman Sachs head of
technical strategy Sheba Jafari also
sounded the alarm on bitcoin in a
note to clients sent earlier this week,
saying that “the balance of signals are
looking broadly heavy.”

At least for now, it appears that Jafari
nailed her call. “Consider re-
establishing bullish exposure between
2,330 and no lower than 1,915,” she
concluded in this week’s note. 

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