CNBC.com’s Pippa Stevens brings you the day’s top business news headlines. On today’s show, MacKenzie Sigalos breaks down bitcoin’s latest turn lower after the FBI recovered most of the ransom Colonial Pipeline paid criminal group Darkside. Plus, Jeff Cox dives into rising inflation fears as Deutsche Bank issues a grave warning.
Bitcoin’s price slipped again Tuesday. The reason for the move was unclear, however it may be related to concerns over security of the cryptocurrency after U.S. officials managed to recover most of the ransom paid to hackers that targeted Colonial Pipeline.
Court documents said investigators were able to access the password for one of the hackers’ bitcoin wallets. The money was recovered by a recently launched task force in Washington created as part of the government’s response to a rise in cyberattacks.
The world’s largest cryptocurrency slid over 7% at 7:30 a.m. ET to a price of $32,936, according to Coin Metrics data. Smaller digital coins also slumped, with ether falling more than 7% to $2,512 and XRP also losing around 7%.
Inflation may look like a problem that will go away, but is more likely to persist and lead to a crisis in the years ahead, according to a warning from Deutsche Bank economists.
In a forecast that is well outside the consensus from policymakers and Wall Street, Deutsche issued a dire warning that focusing on stimulus while dismissing inflation fears will prove to be a mistake if not in the near term then in 2023 and beyond.
The analysis especially points the finger at the Federal Reserve and its new framework in which it will tolerate higher inflation for the sake of a full and inclusive recovery. The firm contends that the Fed’s intention not to tighten policy until inflation shows a sustained rise will have dire impacts.
Passionate day traders glued to their Reddit message boards have found their new favorite target — Clover Health — pushing the shares up triple digits at one point Tuesday.
The Medicare insurance start-up that went public via Chamath Palihapitiya’s SPAC jumped more than 100% on Tuesday after surging 32% in the previous session. The stock closed off the highest level of the day, but still registered a gain of 86%.
By afternoon trading, Clover had already traded over 650 million shares, 30 times more than its 30-day average volume of 22 million shares, according to FactSet. By the closing bell on Wall Street, more than 720 million shares had changed hands.