Bitcoin fizzled in Monday trading as the famously volatile cryptocurrency pulled back after a spectacular new-year rally.
Prices fell as much as 17 per cent in the biggest drop since March before recovering. The losses are small in the context of Bitcoin’s broader rally, with a 50 per cent jump in December alone. After a parabolic 2020, the digital currency had started the new year with a bang, surging as high as US$34,000 and hitting all-time highs on Sunday.
Bitcoin was down 7 per cent to US$31,227 as of 12:59 p.m. in London.
“Today’s selloff is a reminder this is a relatively new asset, highly volatile, and still yet to find its place in the market,” said Adrian Lowcock, head of personal investing at Willis Owen Ltd. “There are many (major) hurdles for it to overcome for it to be a useful mainstream asset.”
As ever in the world of crypto, it’s hard to pinpoint the proximate cause for the latest bout of volatility. Bitcoin is up more than 300 per cent over the past year, driven by a speculative fever from retail and institutional investors on the belief that cryptocurrencies are emerging as a mainstream asset class and can act as a store of value.
Believers in Bitcoin have pointed to the market’s supply constraints and supposedly rampant money printing by central banks as key drivers of bullish narrative. Others say that cryptocurrencies are a bubble in the making and another sign that crazy risk taking has taken over global markets.
“Hot Nasdaq stocks, Chinese internet plays and promising biotechs all of a sudden seem dull compared to the action unfolding in the crypto-currency space,” said Louis Gave, co-founder of Gavekal Research.
After a year that’s seen Robinhood investors emerge as a powerful market force, some are wondering whether small traders could move out of technology stocks and into cryptocurrency speculation.
“Bitcoin’s growing market cap has to come at someone’s expense,” said Gave. “Will the marginal retail dollar start to forgo 2020’s Robinhood darlings and instead shift toward the roaring crypto market?”
The weaker dollar could also be playing a role in Bitcoin’s furious ascent, said Paul Hickey of Bespoke Investment Group. “The last time the dollar saw a larger six-month decline was in the second half of 2017,” he said. “That’s also the same time that Bitcoin first started to go mainstream.”
–With assistance from Eric Lam.
Fewer than 2400 new COVID-19 cases reported in Ontario, another 52 deaths logged – CTV Toronto
Health officials in Ontario are reporting fewer than 2,400 new cases of COVID-19 Saturday.
The 2,359 infections mark a drop over Friday’s report when 2,662 cases were added and bring the province’s COVID-19 case total to 252,585, including deaths and recoveries.
Fifty-two of those deaths occurred in the previous day, 25 of which were residents in a long-term care home.
The Ministry of Health now considers 3,025 more cases to be resolved, a number that has been outpacing new infections in Ontario in recent days. Since the beginning of the pandemic, 222,287 people previously diagnosed with COVID-19 have recovered.
The data released by the government Saturday shows there are currently 24,545 active cases of the novel coronavirus across Ontario.
With 63,453 tests processed in the last 24 hours, the province’s COVID-19 positivity rate stands at 4.5 per cent.
Where are the new COVID-19 cases in Ontario?
Most of the cases reported Saturday were found in Toronto (708), Peel Region (422), York Region (220), Hamilton (107) and Windsor-Essex (100).
Toronto Mayor John Tory commented on the city’s numbers in a tweet published Saturday where he said case counts are heading in the “right direction.”
“Let’s keep it that way. Stay home this weekend, Toronto,” he said.
For context, the province reported 779 cases in Toronto on Friday, 897 (102 of which were attributed to a previous technical issue) on Thursday and 925 on Wednesday.
Toronto has consistently reported the highest daily COVID-19 case numbers in the province since the start of the pandemic.
Several other regions reported case numbers in the high double digits, including Niagara, Waterloo, Halton, Simcoe Muskoka and Durham Region.
Right now, there are 1,501 patients in hospital with COVID-19, down from the 1,512 reported a day earlier.
Of those patients, 395 are being treated in an intensive care unit and 299 are breathing with the assistance of a ventilator.
Update on COVID-19 vaccinations in Ontario
Health Minister Christine Elliott says that 276,146 doses of the COVID-19 vaccine have been administered throughout Ontario since inoculations began last month.
The province said that 11,161 of those shots were administered in the previous day.
At least 57,907 people have received both their first and second shots and are considered to be fully vaccinated.
Ontario is currently operating in Phase 1 of it’s vaccination rollout, which will see shots given to health-care workers in hospitals, long-term care homes and retirement homes, other congregate care settings and remote Indigenous communities
2 New Deaths, 116 New Cases Of COVID-19 In Windsor Essex On Saturday – windsoriteDOTca News
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- 2 New Deaths, 116 New Cases Of COVID-19 In Windsor Essex On Saturday windsoriteDOTca News
- BlackburnNews.com – Overdose alert issued for Windsor area BlackburnNews.com
- Some local leaders fear looming crisis as migrant workers start to arrive in Windsor-Essex CBC.ca
- 8 additional deaths, 99 new COVID-19 cases in Windsor-Essex CTV News Windsor
- Ontario’s enforcement tour coming to Windsor-Essex this weekend CTV News Windsor
- View Full coverage on Google News
Post-pandemic apocalypse – Winnipeg Free Press
Statistic after statistic points to the debilitating state of commerce in Canada. But what exactly do all those pandemic-fuelled business closures mean for cities like Winnipeg, Vancouver or Toronto?
Data released this week by the Canadian Federation of Independent Business shows the situation is dire. More than one in six businesses — at least 239,000 across Canada and 5,601 in Manitoba — are at the risk of permanently disappearing because of COVID-19, or have already closed.
Economists, public policy stakeholders and municipal planners are split on how exactly this will affect the future of downtown cores and surrounding areas.
In interviews with the Free Press, experts described how jarring shifts in local economies will cause hypercompetition in some sectors, while others might completely disappear. It could also cause fewer jobs overall, less walkable areas, limited shopping options, and a rapid loss of the “biz village” concept, they said, along with severe population declines.
One in six businesses at risk — at least 239,000 across Canada and 5,601 in Manitoba
Click to Expand
2.4 MILLION PEOPLE likely be out of work — a staggering 20 per cent of private sector jobs, or just about ONE IN SEVEN of all employment in Canada
47% of businesses are fully open, as of Jan. 22 — down from 62 per cent at the end of November
36% fully staffed, as of Jan. 22 — down from 41 per cent at the end of November
22% businesses currently making normal sales, as of Jan. 22 — down from 29 per cent at the end of November
Source: Canadian Federation of Independent Business
If there’s one thing they can all agree on, however, it’s that Canadians cities will likely never look the same again. And if governments plan on bringing things back to a sustainable “new normal,” analysts believe preparation for it should begin as soon as possible.
“I think there’s an implicit assumption that we’re in a sort of snow globe right now and that everything’s suspended so that one day soon we’ll all go back to normal,” said Vass Bednar, a policy expert who’s held several public and private sector leadership roles, including at Airbnb and Queen’s Park in Toronto.
“Those assumptions are almost certainly wrong,” she said. “The fact is, everyone will quickly notice how different things already are when they go on a walk around their cities to see not just closed signs, but also the larger store or restaurant signs taken off to indicate permanent closures for so many of their favourite places. And it will only get more severe.”
CFIB’s latest figures suggest that at least 58,000 businesses have already permanently closed their doors following pandemic-related lockdowns and restrictions in 2020.
Based on a survey of its members done between Jan. 12 and Jan. 16, the organization now says a mid-range of at least 181,000 small business owners are also considering to close down or declare bankruptcy on top of last year’s numbers, adding up to 239,000 in total.
But should things remain unchanged, by the end of this year, closures could rise up to 280,117 across Canada. In Manitoba, that’s roughly 6,645 storefronts — with even the lowest estimates suggesting at least six per cent (5,601 businesses) will be lost.
That means more than 2.4 million people will likely be out of work — a staggering 20 per cent of private sector jobs, or just about one in seven of all employment in Canada.
“They’re all very scary figures,” said Jonathan Alward, Prairies director for CFIB. “I really, truly hope we’re wrong on this. But it just doesn’t seem like we are, at least not right now.
“In an ordinary time, businesses would never want to be rescued with help from the government. But right now, I think creating pathways for safe openings by tax breaks, subsidies and other strategies to provide easier access is just as important for communities themselves than the business owners.”
Fletcher Baragar is an economics professor at the University of Manitoba who’s extensively researched how bankruptcies and bailouts affect societies and communities. He said he’s never seen more closures than this past year — not during the 2008-09 financial crisis, or even in his studies of recessions that occurred before the turn of the millennium.
“It’s a common thing to see exits and entries all the time in the market — healthy changes are the whole point of an entrepreneurial marketplace,” said Baragar. “But when that business change happens so rapidly, it certainly affects everything else… and it’s incredibly uneven in the type of areas and sectors it affects when some benefit from it and others die out of it.”
Hospitality and arts are two of the hardest-hit sectors, CFIB data indicates, with 33 per cent and 28 per cent of businesses in those sectors expected to close up shop. In the retail sector, it’s 15 per cent of companies.
At the other end of the spectrum, agriculture and natural resources are the lowest-impacted of any sector — still, with six per cent of businesses expected to close. Next is construction, at nine per cent, and manufacturing, at 12 per cent.
Provincial breakdowns show Newfoundland and Labrador will see the most severe impact, with a high-end estimate of 28 per cent of all businesses to close. That’s followed by Alberta at 25 per cent and Ontario at 24. Manitoba is right in the middle at 18 per cent, and Nova Scotia is least-impacted at 14 per cent.
That’s why business owners have begun to ask themselves tough questions, said Baragar, about whether it’s even worth opening up when they’re allowed to and if it’s something they can afford financially.
“Of the ones remaining, I think there’s going to be a lot more consolidation and amalgamation internationally and from one side of the country to the next,” he said. “And that means fewer buying and service options for quite literally everything — restaurants, clothing, you name it.”
Sylvain Charlebois, a leading supply chain expert, said these shifts will also cause city demographics themselves to change. Pointing to recent Starbucks coffee shop closures, he said food companies are making note of this, and will “always go where the money is” — which he doesn’t believe is in urban centres anymore.
“Of course, the cost of city dwelling is a cruel barrier anyway,” said Charlebois, who’s a professor at Dalhousie University in Halifax. “More than that, there’s other reasons that are also important. When businesses close in areas where they were supposed to be forming villages or walkable communities, it impacts the kind of people that want to live in those cities and how much they actually spend. It’s a cycle.”
Loren Remillard, president and CEO of the Winnipeg Chamber of Commerce, said that’s something he’s already seen with Osborne Village in Winnipeg before, when storefronts began to abruptly shut down a few years ago.
“We realized during that time, just how much businesses are more than businesses for livable communities — they’re really the fabric of what binds them together,” he said. “You couldn’t have Little Italy or Little India or even Sage Creek without the actual biz village concept thriving for those ethnographic neighbourhoods.”
Remillard said a continuous push is being made to get larger companies to headquarter in Winnipeg, “so that if and when acquisitions or mergers happen during devastating economic periods, we risk little when their main office is here.”
But as a policy expert, Bednar believes messaging from government has been a crucial part of what makes the future for urban business so frazzled. “It was so much easier just to tell everyone to move online and give them some subsidies to string along,” she said.
“Eventually, when this is finally over, what happens when we’re offline again? Can you actually market or promote tourism if you don’t have physical stores? It might be time to start changing how we’re thinking and talking about these things.”
Temur Durrani reports on the economic impact of the coronavirus pandemic for the Winnipeg Free Press. Funding for this Free Press reporting position comes from the Government of Canada through the Local Journalism Initiative.
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