Even though the financial markets in the US were closed yesterday for the Thanksgiving holiday, it certainly didn’t stop the rest of the world from trading. And it certainly didn’t prevent Bitcoin from establishing its reputation as one of the most volatile instruments in modern existence.
During the morning trading session in London, Bitcoin saw a STAGGERING 13% drop from $19,510 to $16,320… all after several days of non-stop rallying and Bitcoin bulls proclaiming we were just a short while away from breaking the $20,000 price level and exceeding the high of $19,783.21 achieved in December 2017.
However, I wouldn’t recommend the Bitcoin shorts and bears to start celebrating just yet. This one day should be looked at in the context of Bitcoin’s overall growth this year: +140% in 2020, and +50% over the past 90 days.
Furthermore, many cryptocurrency experts are suggesting that what we saw yesterday was nothing more than a mere correction. Such as crypto lender Nexo’s co-founder Antoni Trenchev:
“Long term I don’t see anything derailing Bitcoin’s irrevocable rise higher. That doesn’t mean we won’t have pullbacks along the way. Look what happened in March; Bitcoin plunged 40% in one day during the coronavirus market panic. 20-30% falls can and should be expected.
Any healthy market needs to have pullbacks and periods of consolidation. Already in 2020 we’ve seen a gain of 160%.”
Nexo’s head of business development Vijay Ayyar agreed with this sentiment, noting that Bitcoin was eventually going to experience a correction due to massively overbought conditions.
Other reasons for this apparent crash come from OSL’s global head of trading Ryan Rabaglia:
“It’s also not unusual to see a short-term pullback following periods of significant, accelerated gains as traders look to take profits before resetting once volatility subsides. Once the dust settles, we’re back to business as usual with all medium to long-term bullish indicators still in play.”
Rabaglia also cited the increasing possibility of US rules and regulations around cryptocurrencies becoming tighter and more restrictive in nature. While this is not always the case, any sign of government intervention into crypto assets such as Bitcoin is regarded as bad news and generally leads to bearish movement.
Long story short: For the time being, the correction we saw yesterday was nothing out of the ordinary. It is to be expected and is perfectly explainable by several technical analysis factors and well-timed events.
What do YOU think about the 13% drop in Bitcoin? Are we in the middle of a correction before the cryptocurrency continues to rise again, or is this the first sign of yet another crash? Reply to this newsletter and share your thoughts with us!
Apparently, Americans Exploring the World Need THREE COVID-19 Tests
It might be rather tiresome to hear about the news regarding tourism companies and their endless push for universal COVID-19 testing. But I would rather get tested than deal with a mandatory COVID-19 vaccine law.
So in light of attempting to figure out what the best testing protocol would be, the Centers for Disease Control and Prevention (CDC) has made some new recommendations for any American traveling internationally:
- Test #1: 1-3 days before your flight
- Test #2: 1-3 days before returning to the US, ideally not leaving before the results of your test are confirmed
- Test #3: 3-5 days after returning, plus 7 days of self-isolation regardless of the test results (14 days if you refuse to get rested)
When pressed for comment, the CDC had this to say:
“Air travel requires spending time in security lines and airport terminals, which can bring you in close contact with other people and frequently touched surfaces. Social distancing is difficult in busy airports and on crowded flights, and… may increase your risk of getting COVID-19… Testing before and after travel can reduce the risk of spreading COVID-19.”
Naturally, I suspect we’re going to have to pay for every single test with our own money. It’s a bit much if you ask me, and I can’t help but wonder how profitable this new venture is going to be for companies specializing in the creation and distribution of COVID-19 lab tests.
Wanna Stay Overnight in Dubai For Free? Now’s Your Chance!
The United Arab Emirates airline known as Emirates is restoring an offer which was known as “Dubai Connect” and the perks are worth reading about:
“Emirates passengers will receive a complimentary night’s stay in a four or five-star hotel, ground transfers to and from the airport, meals at the hotel as well as UAE visa on arrival where required. The service aims to provide customers whose best connection time is between 10 and 24 hours, a more convenient travel journey.”
So not only do you get to explore all of the wonderful tourism that Dubai has to offer in its ever-expanding city of unbelievably tall skyscrapers (provided you wear a mask), but you also get to get some rest in a luxury hotel at no extra cost to you. This deal goes live as of December 1st, and those who can’t leave the airport will have access to a VIP lounge until their next flight.
Keep in mind that Emirates’ flights are already some of the most expensive in the world, even if you pay for a simple economy seat.
This isn’t the type of deal available to your average passenger, as the types of people who can afford to Dubai are the ones who are usually swimming in money. So unless you’re financially well-off, it might be a while before you can take advantage of this new program.
Canadians Can Freely Travel the World but Americans Can’t… Why, Exactly?
Even with the Canada-US border being locked down for the rest of the year and likely until early 2021, there’s one loophole most people don’t know about: Canadians can’t cross the land border, but they are well within their rights to fly to the United States and any other country where the borders are open.
While the Canadian government has specifically advised people to avoid all forms of non-essential travel to reduce possible COVID-19 transmission, they can’t enforce it as a mandatory rule of law.
According to CBC, “Canada’s Charter of Rights and Freedoms states that Canadians have the right to enter and leave the country.” In a nutshell, the Canadian government’s own Constitution prohibits them from explicitly stopping Canadians who want to travel abroad.
Even the legal experts in Canada are smart enough to recognize that implementing an outright travel ban would be unrealistic. They know that any policy created for the purpose of limiting travel has to simultaneously respect the constitutional rights of Canadians.
There is one catch, however: The federal government has stated that their capacity to repatriate Canadians back into the country – in the event of a cancelled flight – is extremely limited. And if you don’t get the right travel insurance before leaving and get sick with COVID-19, you’re 100% responsible for footing the bill.
All of these conditions are meaningless sacrifices for Canadians who want to travel to warmer weathers so they can escape from the bitter cold. They just have to put up with a 14-day quarantine once they get home, but I’m willing to bet they would have done so anyway.
The Time to Book a Cruise Vacation for the Summer (and Beyond) Is NOW
With the calendar year of 2020 quickly reaching its end, cruise line companies are already looking forward to restoring their industry back to normal in 2021. Seats are quickly filing up fast for next summer, next fall, and even next winter!
For this reason, TravelPulse contributor Claire Shoeder advises booking a cruise trip no earlier than late April:
“I have been suggesting to clients that they book when they think the deal is what they are looking for. And if final payment has not been made and a better deal comes out, I can speak with the cruise line to see if we can amend the booking to get the improved offering – be it lower price or more inclusions.”
On top of some of the discounts which will come out today on Black Friday, Cyber Monday, and possibly near the Christmas holiday, cruises are starting to dramatically change their offers.
Several companies have already announced the following exclusions to their packages at no additional cost:
- Shore excursions
- Wi-Fi access
- Unlimited drinks
While I’m not personally in any rush to hop on a cruise ship again, I know several people who are. If your schedule for Q2 2021 and beyond is open and you are eager to sail the seas again, I don’t think there’s a better time than right now to lock in your vacation!
Some Tips on Properly Managing Your Credit Score
As frequent travelers, we can’t help ourselves when we take advantage of the latest credit card deal. Cash-back rewards, earning several times more membership points than usual, redeeming points for exclusive deals on cheap fares for hotels and flights, and much more.
Yet our constant juggling of multiple credit cards is meaningless if we can’t keep our credit scores up. The worse your credit score is, the harder it is to build it back up to a good rating. Not to mention how a bad credit score limits your options when it comes time to take a loan on a car or a house.
There are usually two major reasons why someone experiences a drop in their credit score…
The most common reason involves late payments, which is pivotal in determining your credit score. At the very least, you should be making your minimum monthly payments and avoid being late (ideally, you should pay your bills off in full). Being late less than 30 days will cause you to pay a small fee afterwards, but it’s better than taking a hit to your credit score.
The second reason has to do with total credit utilization. In an ideal scenario, your balance across all your credit cards should be less than 20% of your total credit across all your cards (i.e. for a $10,000 limit, your balance should avoid exceeding $2,000). This ratio also applies towards an individual credit card as well.
On top of making payments, you should also check the credit limit for all of your credit cards. You may have missed the announcement, but some companies have lowered their credit limits. This means that even though you may have been within the boundaries of 20% credit utilization before the COVID-19 pandemic, that may no longer be the case right now.
A low credit score isn’t something you want to have, but it’s not the end of the world and it can always be fixed.
What other tips do YOU have for keeping your credit score high (while stopping it from going down)? Reply to this newsletter and share your insights with us!