Crypto craziness continues

Bitcoin swung 30% before you woke up [Click to view in browser](. Good afternoon, It’s safe to say that the [crypto craze]( hit a peak. And now, we’re seeing the air let out of the bubble. Over the weekend, Bitcoin dropped more than $4,000 before swinging back $6,000. Regulation station After interest peaked, a combination of Chinese and Fed regulation announcements cut the legs out from high fliers. Not only did it send cryptocurrencies into a tailspin, but dragged related equity names such as Marathon Holdings (MARA) and Riot Blockchain (RIOT), both off more than 70% and 60% from their peaks respectively. Yet, more signs emerged of digital currency’s acceptance. Fed Governor Lael Brainard said a digital currency backed by the central bank could provide useful in the new economy. Coincidentally, China is also studying the issue, hoping to launch its own digital Yuan in the near future. So what? If you’re reading this, chances are you have a bank account. Yet, nearly 25% of Americans don’t, classifying them as ‘underbanked.’ Covid stimulus payments highlighted this issue. With many businesses closed, those without bank accounts found themselves searching for check-cashing services. The benefits of a Fed-backed digital currency are like having your cake and eating it too. You get all the benefits of a digital currency with the backing of the Federal Reserve. Or at least many of them. You still wouldn’t have the protection of physical currency or deposits in your bank account. Plus, it would require congressional approval, not to mention come with a host of privacy concerns. Ideally, the Fed wants this to complement our current U.S. Dollar, not replace it. For right now, they’re studying the issue and we’ll leave it at that. Fed worries about private cryptos In the same remarks, Brainard raised concerns about private cryptos like Bitcoin and Riot. In a nutshell, because these currencies aren’t backed by the government, consumers are exposed to outside risks they may not recognize. She compared it to the ‘wildcat’ banking activities in the 19th century when private entities issued their own currencies, an era associated with inefficiency and fraud. Our hot take Tesla already proved how quickly cryptocurrencies can fall out of favor. [That’s why it’s important to stay on top of the names set to make explosive moves.]( Now, cryptos aren’t the only top story today. That’s why we collected content from our publisher network to get your week started the right way. Power Plays [5 Best Undervalued Stocks to Buy Now According to Reddit]( In this article we discuss the 5 best undervalued stocks to buy now according to Reddit. If you want to read our detailed analysis of these companies, go directly to the 10 Best Undervalued Stocks to Buy Now According to Reddit. 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