Billionaire Bill Ackman says that Bitcoin’s (BTC) potential could be limitless in the case of an economic collapse. In a new thread on the social media platform X, the chief executive of hedge fund Pershing Square Capital Management says that the crypto king could create an endless loop that sees its price go up infinitely. […]
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Billionaire investor Bill Ackman believes that the Federal Reserve is set to cut interest rates as data shows that inflation is on its way down. In a new CNBC interview, the founder and chief executive of the hedge fund Pershing Square Capital Management says that a minimum, he sees the Federal Reserve announcing three rate […]
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Bitcoin whales may yet spark mass profit-taking should BTC price action target $40,000 or higher.
Bitcoin (BTC) held momentum at $38,000 on Nov. 29 as analysis warned over market corrections.
Data from Cointelegraph Markets Pro and TradingView showed BTC price trajectory continuing to aim for new 18-month highs.
After matching current highs the day prior, the largest cryptocurrency surprised by keeping a grip on higher levels as futures markets hit $39,000.
Already a topic of debate, the excitement on derivatives led some to caution that large-volume traders could still leave late long positions stranded at the top.
In commentary overnight, Keith Alan, co-founder of monitoring resource Material Indicators, told traders to be wary of these “whale games.”
“Earlier today, some ask liquidity at $38k was pulled to open the door to $38.5k. Don’t allow yourself to think that was a friendly whale giving you boost. That was a Killer Whale trying to FOMO you in,” he wrote about the initial trip past $38,000.
Alan continued that words due Dec. 1 from Jerome Powell, chair of the United States Federal Reserve, may provide an external BTC price catalyst that could even bring $40,000 into play.
Whales, however, would be spying on a key level at which to sell off.
“My assumption is that they will continue to do so until there is enough to dump into,” he forecast.
“That doesn’t mean that # JPow’s speech can’t be the catalyst that sends price past $40k, especially as we see bid liquidity coming in above $37.5k, but if you aren’t prepared to sweep the local lows between now and then you haven’t been paying attention to how these Whale Games tend to play out.”
An accompanying chart showed order book sell-side liquidity concentrated at $38,500 — a level yet to be challenged at the time of writing.
Others remained confident that further short-term upside was possible and even likely.
Analyzing current market composition, popular trader Skew concluded that volume was all that was missing for a breakout toward the $40,000 watershed.
$BTC 4H Update
— Skew Δ (@52kskew) November 29, 2023
Trend still respected & clean HL exactly where I expected it to occur ($36.7K)
Just need the HH now & volume supported break of $38K - $40K resistance https://t.co/iPPGzVIbFF pic.twitter.com/SQtKwvBdz0
As Cointelegraph reported, prior to Powell’s speech, key U.S. macro data will lend extra weight to Fed policy.
Related: Bitcoin metric that ‘looks into future’ eyes $48K BTC price around ETF
This comes in the form of Q3 GDP and the October print of the Personal Consumption Expenditures Index on Nov. 29 and Nov. 30, respectively.
Previously, inflation abating faster than expectations led markets to assume that no further interest rate hikes would occur at the December meeting of the Federal Open Market Committee.
Speaking to Bloomberg on Nov. 28, Bill Ackman, CEO and founder of hedge fund Pershing Square Capital Management, stated that the Fed might have no choice but to pivot on rates at the start of 2024.
“I think they’re going to cut rates; I think they’re going to cut rates sooner than people expect,” he said.
Ackman continued that not cutting rates “pretty soon” would increase the risk of a so-called hard landing for the U.S. economy as inflation tails off.
“I think the market expects sometime in the middle of next year; I think it’s more likely, probably, as early as Q1,” he predicted.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Billionaire investor Bill Ackman is issuing a warning, saying that there’s an imbalance between buyers and sellers of US government bonds. In a new CNBC Television interview, Ackman says there are plenty of reasons why the Federal Reserve could make abrupt changes to its benchmark interest rates. According to the billionaire, the US bond market […]
The post Demand for US Debt Facing Worst ‘Technical Environment’ in Our Lifetime, Says Hedge Fund Billionaire Bill Ackman appeared first on The Daily Hodl.
Billionaire Bill Ackman has warned that “We are running out of time” to fix the problem that led to the collapses of regional banks. “How many more unnecessary bank failures do we need to watch before the FDIC, U.S. Treasury, and our government wake up?” he stressed, adding that “We need a systemwide deposit guarantee […]
Warnings continue to pervade market and financial news this week, with Monica Crowley, former assistant secretary for public affairs for the U.S. Department of the Treasury, indicating “catastrophic” consequences if the U.S. dollar loses its status as the world’s reserve currency. In related news, billionaire Bill Ackman warned that the U.S. economy is “heading for […]
Billionaire Bill Ackman has warned that the U.S. economy is “heading for a train wreck” if the government allows the current banking crisis to continue. “Trust and confidence are earned over many years, but can be wiped out in a few days,” he said. “Hopefully, our regulators will get this right.” Bill Ackman’s Warning Billionaire […]
The U.S. Federal Deposit Insurance Corporation (FDIC) began an auction process for Silicon Valley Bank (SVB) late Saturday night, according to reports. Final bids are due by Sunday afternoon. Unnamed sources indicate that the FDIC is seeking to close the deal promptly after California regulators closed the bank and placed it into FDIC receivership on […]
Billionaire Bill Ackman said that SVB’s senior management made a “basic mistake” but should be fired.
Billionaire Bill Ackman has urged the United States government to “guarantee” all deposits held by Silicon Valley Bank (SVB) within the next “48 hours,” or it risks the “destruction” of many financial institutions.
In a Mar. 11 tweet, Bill Ackman, CEO of hedge fund management firm Pershing Square, said a “giant sucking sound" will be heard from the ”withdrawal of substantially all uninsured deposits,” from all banks, besides the “systemically important banks (SIBs),” should the government fail to “guarantee all” of SVB’s deposits before the “open on Monday.”
Ackman suggested that this would be the result of "the world" realizing what an uninsured deposit is – “an unsecured illiquid claim on a failed bank.”
He warned that these withdrawals will “drain liquidity,” from community, regional and other banks and “begin the destruction” of these crucial institutions, if the U.S. government fails to protect “all depositors.”
Ackman said that the only other way to prevent this from happening, was in the “unlikely” event that major financial institutions such as JPMorgan, Citibank or Bank of America, acquire SVB before Monday.
It was argued by Ackman that this could have been “avoided” if the U.S. government had “stepped in on Friday” to guarantee SVB’s deposits, adding that the long-standing bank’s “franchise value” could have been safeguarded and "transferred" to a new owner in return for an “equity injection.”
Ackman suggested that SVB’s senior management “made a basic mistake” but should be fired. He noted:
“They invested short-term deposits in longer-term, fixed-rate assets. Thereafter short-term rates went up and a bank run ensued. Senior management screwed up and they should lose their jobs.”
After conducting a “back-of-the-envelope review” of SVB’s balance sheet, Ackman believes that even “in a liquidation,” depositors “should eventually” get back approximately “98% of their deposits”.
However, he argued that “eventually” is “too long” when you have “payroll to meet next week.”
Ackman tweeted shortly after, reiterating that the Federal Deposit Insurance Corporation (FDIC) should guarantee all SVB bank deposits by Sunday night, along with a proposed plan.
What should the FDIC do? @FDICgov to guarantee all bank deposits by Sunday night before Asia open and call a time out. Run a process to recapitalize @SVB_Financial while managing liquidation of UST and MBS portfolios to be reinvested in short term UST. Determine the capital hole… https://t.co/g96k1b7soy
— Bill Ackman (@BillAckman) March 11, 2023
Related: Silicon Valley Bank failure could trigger run on U.S. regional banks
This comes after Bob Elliot, CEO of investment firm Unlimited, said that the Federal Reserve and FDIC decisions regarding the future of SVB may affect regional banks across the United States, putting trillions of dollars at risk of a bank run.
Elliot stated that nearly a third of deposits in the United States are held in small banks, with 50% of those deposits being insured.
Billionaire Bill Ackman has warned of “vast and profound” consequences of the U.S. government letting Silicon Valley Bank (SVB) fail without protecting all depositors. “No company will take even a tiny chance of losing a dollar of deposits as there is no reward for this risk. Absent a systemwide FDIC deposit guarantee, more bank runs […]