2023-11-22 16:47
Copyrighted Image by: Reuters. LONDON - The London Metal Exchange (LME) is signaling an abundance of supply, with base metals like copper experiencing a deep contango, where spot prices are significantly lower than futures. This pricing pattern reflects a broader economic slowdown and the impact of high-interest rates. The situation has been further influenced by China's inconsistent recovery from the pandemic, which has had a global ripple effect. As of today, the strengthening of the US dollar has played a role in lowering base metal values. In response to the surplus and the current market conditions, Citigroup Inc (NYSE:C). is engaging in metal-financing trades to leverage the contango scenario. Despite the general trend, copper prices have seen some upward movement, spurred by anticipation of potential US interest rate cuts and strong demand from China's renewable energy sector. The mixed sentiments were evident at a recent industry conference in Shanghai, where participants debated over the possibility of refined metal surpluses against the backdrop of mining production challenges. While LME stockpiles are being replenished due to decreasing demand, this has led to increased borrowing costs, adding another layer of complexity to market dynamics. In summary, the base metal market is navigating through a period characterized by ample supply and heightened economic uncertainties, with various factors influencing price movements and strategic trading decisions. https://www.investing.com/news/commodities-news/copper-prices-dip-as-market-faces-contango-on-lme-93CH-3241548
2023-11-22 16:38
Copyrighted Image by: Reuters. Brian Kelly, the CEO of BKCM, expressed a bullish outlook for Bitcoin on CNBC today in an interview with CNBC Money, suggesting that the cryptocurrency could potentially experience a tenfold increase in value if it begins to capture a portion of gold's market share. His comments come as the crypto community anticipates the April Bitcoin halving event, which is expected to decrease the supply of Bitcoin and bolster investor sentiment. Kelly highlighted several factors that could contribute to Bitcoin's growth. Among them is the possibility of the Federal Reserve capping interest rate hikes at around 5.5%, which may positively affect investor outlook towards riskier assets like cryptocurrencies. He also pointed to upcoming spot market Bitcoin Exchange-Traded Funds (ETFs) filings from financial giants such as Morgan Stanley, which could provide easier access for retail investors and advisors. Drawing parallels between the proposed Bitcoin ETFs and those already existing for gold, Kelly emphasized Bitcoin's utility online over traditional gold investments. He argued that this technological edge positions Bitcoin favorably as both an inflation hedge and a key digital asset in investment portfolios. Despite recent volatility in Bitcoin's price, with a drop to $36,203 marking a 3.5% decrease, Kelly remains optimistic about its future role in financial markets. With Bitcoin's current market capitalization at $700 billion compared to gold’s $7-8 trillion, even a slight shift in investment from gold to Bitcoin could lead to a significant rise in the cryptocurrency's value. Kelly’s perspective suggests substantial room for growth if Bitcoin starts to erode gold’s dominant market position. https://www.investing.com/news/cryptocurrency-news/bitcoin-could-see-tenfold-surge-on-gold-market-share-shift-says-bkcm-ceo-93CH-3241544
2023-11-22 16:37
Copyrighted Image by: Reuters. The anticipation of a spot Bitcoin Exchange Traded Fund (ETF) has stirred diverse opinions in the investment community, with Pantera Capital's CEO Dan Moorehead offering a contrarian view. Contrary to traditional investment expectations, Moorehead suggests that the upcoming Bitcoin ETF will chart a different course than previous market events such as the CME Futures introduction and the Coinbase (NASDAQ:COIN) IPO. Moorehead argues that, unlike these past events, which did not significantly enhance Bitcoin's accessibility or curb post-launch price declines, the Bitcoin ETF is poised to serve as a pivotal moment for cryptocurrency. He envisions the ETF fostering broader investor participation and spurring an uptick in Bitcoin adoption, drawing parallels to the expansion of gold investment following the introduction of gold ETFs. This step, according to Moorehead, could be instrumental in weaving cryptocurrencies more tightly into the fabric of mainstream finance. The stance taken by Pantera Capital underscores a growing belief that cryptocurrency is gradually becoming an integral part of the broader financial ecosystem. With the potential approval and launch of a Bitcoin ETF, there is an expectation that it will not only attract more investors but also solidify digital assets' place in investment portfolios, mirroring gold's trajectory after its own ETF debut. https://www.investing.com/news/cryptocurrency-news/pantera-capital-sees-bitcoin-etf-as-a-catalyst-for-wider-adoption-93CH-3241542
2023-11-22 16:34
In a significant development for the cryptocurrency market, Binance CEO Changpeng Zhao has stepped down following an agreement with the U.S. Department of Justice (DOJ). This leadership change has had an immediate impact on the market, with FTX's token, FTT, experiencing a substantial surge in value, while Binance's own token, BNB, witnessed a sharp decline. On the day of Zhao's resignation, FTT saw its price jump by 42% to $4.26, as reported by CoinMarketCap. This rally is particularly noteworthy given FTT's limited utility but demonstrates strong institutional interest despite the token's association with FTX's past bankruptcy issues. Earlier this month, FTT had reached a year-to-date high of $4.3, suggesting a robust recovery momentum from last year's collapse and growing investor optimism about the potential launch of a new version of the trading platform. Conversely, Binance's BNB token experienced a downturn, plummeting by 13% to $235 according to Santiment. The day before Zhao announced his departure on Twitter and took personal accountability for his actions, BNB was already under pressure with a $3.73 million liquidation in long positions and a 68% surge in options activity volume. Additionally, Bitcoin's value dropped to $36,344.38. https://www.investing.com/news/cryptocurrency-news/binance-ceo-resigns-amid-doj-deal-ftx-token-rallies-while-bnb-falls-93CH-3241537
2023-11-22 16:30
Copyrighted Image by: Reuters. The Mexican Peso has seen a modest appreciation against the US Dollar, with the USD/MXN pair dipping below 17.20 after it had earlier reached a daily high at approximately 17.24. This movement comes as market participants turn their attention to upcoming economic indicators from Mexico, including mid-month inflation figures for November and third-quarter GDP data, both due on Friday. These releases are expected to influence the future direction of USD/MXN trades. In a recent report, INEGI noted a slight month-over-month downturn in Mexico's economic activity but confirmed an annual expansion according to the IOAE results. Meanwhile, a Citibanamex poll revealed divergent expectations regarding Banxico's (The Bank of Mexico) future rate trajectory, with projections ranging broadly from around 8.0% to about 10.25% for next year. These forecasts come alongside revised inflation estimates set higher by Banxico at nearly 3.87%. From the US perspective, financial updates indicated that the Federal Reserve's minutes suggest further tightening could be possible if warranted by economic conditions. However, labor market and production metrics have pointed to an economic slowdown, leading to speculation about a potential halt in Fed rate increases. Swap markets are currently pricing in approximately 100 basis points worth of reductions from the Fed by 2024. Retail sales in Mexico for September grew only about 2.3% year-over-year, impacted by Banxico's rate hikes which aim to moderate demand and control inflationary pressures. https://www.investing.com/news/forex-news/mexican-peso-gains-on-us-dollar-ahead-of-key-economic-data-93CH-3241543
2023-11-22 16:28
Copyrighted Image by: Reuters The U.S. Securities and Exchange Commission (SEC) has postponed its decision on Coinbase (NASDAQ:COIN)'s request for clear cryptocurrency regulation guidelines to December 15, a move that has heightened tensions within the cryptocurrency industry. This delay comes as legal battles intensify between regulators and crypto firms, with exchanges like Kraken and Coinbase facing lawsuits from the SEC for alleged operations as unregistered securities exchanges. Coinbase, in a court response filed today through Chief Legal Officer Paul Grewal, has sought compulsory action on their petition for digital securities regulation. Grewal expressed frustration with the SEC's inaction, citing the recent case against Kraken as an example of the challenges faced by U.S.-based cryptocurrency exchanges. The broader crypto community is echoing the call for definitive regulatory frameworks to enable industry growth and stability. Amidst this regulatory uncertainty, Coinbase CEO Brian Armstrong reaffirmed his firm’s commitment to U.S. regulatory compliance, considering it strategic foresight despite recent upheavals in the industry such as Binance CEO Changpeng Zhao’s resignation and fines levied against him. Supporting the need for clear guidelines, Cameron Winklevoss, a notable figure in the crypto space, stands with the embattled exchanges. The push for regulation is seen as crucial to navigating the complex landscape of cryptocurrency operations in the United States and ensuring sector development. This ongoing situation underlines the importance of regulatory clarity for digital assets and serves as a reminder that insights provided are not intended as trading advice. The industry awaits the SEC's decision next month with hopes that it will bring much-needed guidance and stability. https://www.investing.com/news/cryptocurrency-news/coinbase-calls-for-sec-action-on-crypto-regulations-amid-industry-turmoil-93CH-3241527
