2023-11-17 16:48
Copyrighted Image by: Reuters. NEW YORK - In a notable shift within the cryptocurrency market, Bitcoin is experiencing a significant transformation in liquidity. The actively traded liquid supply of Bitcoin has dropped to a record low not seen since 2012, standing at just 1,295 million BTC. This reduction in available Bitcoin for trading is causing tension among market participants. In contrast, the illiquid supply, which signifies a growing trend of holding Bitcoin rather than trading it, has surged to an all-time high of 15.4 million BTC. This increase includes an addition of 50,000 BTC over the past month, continuing a pattern that began in July. The highly liquid supply has also seen a sharp decrease to approximately 2,888 million BTC, marking the lowest level since 2018 and highlighting the current liquidity squeeze in the market. Despite this tightening of supply, Bitcoin's value remains close to its peak from the last 18 months but has recently dipped below $36,000 following a correction that exceeded three percent from its previous bear market range. The market dynamics are also reflected in the changing composition of Bitcoin wallet categories. Data from Sentiment indicates a surge in small-scale investor participation, with over one and a half million new wallets holding less than one Bitcoin each created over the past month. Wallets containing between one to one hundred Bitcoins have shown little change with an eighteen-address decrease, while wallets with over one hundred Bitcoins have reduced by nineteen addresses, suggesting profit-taking by larger investors. Despite these shifts in wallet distribution and supply dynamics, on-chain metrics paint a positive picture with nearly seven hundred and three thousand transactions recently recorded. Transaction fees have risen to $18.67 during periods of intense activity such as the Ordinals frenzy. In response to these market conditions and aiming to draw new traders, Binance Futures has launched an incentive program offering a hundred-dollar bonus and discounted fees for the first month to its users. This move by one of the largest cryptocurrency exchanges underscores the competitive nature of the market as it adapts to changing liquidity patterns and investor behaviors. https://www.investing.com/news/cryptocurrency-news/bitcoin-liquidity-crunch-hits-as-holder-sentiment-grows-supply-tightens-93CH-3237993
2023-11-17 16:40
NEW YORK - Silver prices soared this week, with an 8.43% increase to $23.87, buoyed by investor speculation that the U.S. Federal Reserve may pause its interest rate hikes. This sentiment is rooted in recent economic data suggesting an inflation slowdown, with October's consumer price index remaining static and producer prices showing less aggression than anticipated. Additionally, a rise in unemployment claims is seen as aligning with the Fed's anti-inflation goals. The market's bullish outlook is further supported by technical analysis, indicating that silver is trading above important averages and approaching key resistance levels. Investors are closely watching the metal's performance as it hovers above the $23.55 support level and nears resistance at $23.94, with an eye on the minor resistance level of $24.50. The anticipation of a less hawkish stance from the Fed in its upcoming December meeting has enhanced silver's appeal as an investment. This is in contrast to earlier statements from Fed Chairman Jerome Powell, who had indicated the possibility of further rate increases. Contributing to the positive trend, China's central bank has notably increased its silver reserves, underscoring strong market confidence. As investors navigate a weakening dollar and persistently low Treasury yields, silver maintains its position above the critical support level of $21.92. This week's rise in silver prices reflects a broader market anticipation of a potential shift in monetary policy, as investors look ahead to the Federal Reserve's next move amidst evolving economic indicators. https://www.investing.com/news/commodities-news/silver-price-soars-on-expectations-of-feds-rate-hike-pause-93CH-3237977
2023-11-17 16:16
Copyrighted Image by: Reuters. OTTAWA - Recent data from Statistics Canada indicates a significant decrease in the prices of Canadian manufactured goods and raw materials in October, primarily driven by lower crude oil costs. The producer-price index fell by 1.0% from September, marking a year-over-year decline of 2.7%. This downward trend highlights the impact of fluctuating commodity prices on the country's manufacturing sector. The report detailed specific areas where price reductions were most pronounced. Energy and petroleum products experienced a notable decline, with prices dropping by 5.7%. Motor gasoline prices contributed significantly to this decrease. When energy products were excluded, producer prices still saw a reduction, albeit a smaller one at 0.3%. This suggests that the broader manufacturing sector is also facing downward price pressures beyond the volatile energy segment. Softwood lumber prices saw their steepest monthly fall since March, plunging by 6.4%. This drop is closely tied to the real estate market, which has been cooling due to high-interest rates. The construction industry often serves as a barometer for broader economic trends, and this substantial decline could signal wider challenges ahead. Moreover, metal ores and concentrates did not escape the downward trend, with nickel ores and concentrates experiencing significant price drops. Additionally, hog prices continued their decline for the second month in a row. Economic analysts attribute these trends to the aggressive rate hikes previously implemented by the Bank of Canada. These measures were intended to temper inflation but have also led to reduced economic activity. As a result, there is an expectation of prolonged economic softness into the coming year, with tepid forecasts casting a shadow over near-term economic prospects. These developments are crucial for stakeholders across various sectors of the Canadian economy, including manufacturing, real estate, and commodities trading. As businesses navigate these changes, the data serves as an essential gauge of current market conditions and potential future trends. https://www.investing.com/news/commodities-news/canadian-producer-prices-fall-in-october-due-to-cheaper-crude-oil-93CH-3237964
2023-11-17 16:09
Copyrighted Image by: Reuters NEW YORK - Ethereum, a leading cryptocurrency, has witnessed a significant surge, reaching $2,054 today amid a broader altcoin season. Market participants are buoyed by a sense of optimism, which has set the stage for potential further gains, with some eyeing a target of $3,000. In the realm of initial coin offerings (ICOs), InQubeta (QUBE) is making headlines for its innovative approach to funding AI startups. The project has successfully garnered over $4.9 million in presales and is forecasting a substantial 670% increase in its token value within the coming year from its presale price of $0.0161. InQubeta stands out by leveraging blockchain technology to streamline crowdfunding efforts. Its QUBE tokens are at the core of this initiative, providing a gateway for investors to participate in the AI market. The platform's use of non-fungible tokens (NFTs) and fractional investments is a strategic move to democratize access to investment opportunities in artificial intelligence ventures. The market's response to InQubeta's presale success indicates a growing interest in AI and blockchain synergies. Investors are increasingly looking towards such innovative platforms that offer both technological advancement and financial inclusivity. As Ethereum continues to climb and projects like InQubeta demonstrate the potential of blockchain in revolutionizing funding mechanisms for emerging technologies, the cryptocurrency market is showing signs of evolving into a more mature and diverse ecosystem. https://www.investing.com/news/cryptocurrency-news/ethereum-leads-altcoin-rally-touches-2054-with-sights-on-3000-93CH-3237954
2023-11-17 15:56
NEW YORK - The cryptocurrency investment landscape is witnessing a nuanced debate as Bitwise, a leading crypto index fund manager, delves into the potential impact of U.S. Ethereum (ETH) exchange-traded funds (ETFs). Chief Investment Officer Matt Hougan and crypto analysts of Bitwise have shared insights suggesting that Bitcoin (BTC) ETFs are poised to have a more significant influence on the market than ETH ETFs. The analysts highlighted that institutional investors are becoming more familiar with BTC, often seeing it as a digital equivalent to gold. In contrast, ETH is likened to a high-growth tech stock, with its role in portfolios reflecting its nature as a smart-contract platform and its staking features offering "dividend-like" cash flows. Despite this, the analysts pointed out that there's still a gap in understanding the fundamental differences between BTC and ETH among these investors. Hougan emphasized two key reasons why Bitcoin might dominate the ETF space: an anticipated earlier approval by regulators and its primary use case aligning with the traditional purpose of ETFs — serving as a store of wealth outside the fiat currency system. While Bitcoin is seen as a tool for wealth preservation, Ethereum's core functionality lies in its programmability, which allows it to support complex applications such as decentralized exchanges and lending platforms. This aspect of Ethereum remains unchanged by the creation of an ETF. Despite Ethereum's complexities, financial advisors are beginning to appreciate its unique attributes. However, the analysts noted that inflows into Ethereum-based funds have been sluggish this year, attributing this trend to historically low crypto volumes at the time of the launch of Ethereum futures ETFs and distractions from high-profile events like Sam Bankman-Fried’s trial. Looking ahead, the analysts projected that institutional interest in ETH would grow due to its distinctive features like staking and its foundational role in powering decentralized applications. Yet, he acknowledged that most advisors are not heavily invested in crypto at present, which may contribute to their limited engagement with recent developments in the space. Bitwise continues its efforts alongside other asset managers, including BlackRock (NYSE:BLK) and Fidelity, to secure regulatory approval for a Bitcoin spot ETF, which could further cement Bitcoin's position in investment portfolios and potentially catalyze broader institutional adoption. https://www.investing.com/news/cryptocurrency-news/bitcoin-etfs-expected-to-outshine-ethereum-counterparts-in-the-us-market-93CH-3237951
2023-11-17 15:48
Copyrighted Image by: Reuters. NEW YORK - The cryptocurrency market experienced a notable downturn today, with several major digital currencies posting losses. Uniswap was at the forefront of the decline, falling by 4.13%. Other cryptocurrencies such as Solana and Polygon also witnessed drops, trading at $56.29 and $0.82 respectively. The downward trend extended across various altcoins, with Polkadot decreasing by 3.68%, Ripple by 2.80%, Cardano by 2.10%, and Ethereum experiencing a slight loss of 1.23%. Despite the general market slump, there were some counter-trends observed in the space. Dogecoin managed to buck the trend with a rise of 3.10%, while Bitcoin, the leading cryptocurrency by market capitalization, saw a marginal increase of 0.13%. The impact of the crypto market's performance was also reflected in related stocks. Coinbase (NASDAQ:COIN) Global, a prominent cryptocurrency exchange, saw its shares drop by 1.19%. Similarly, MicroStrategy, known for its substantial Bitcoin holdings, dipped by 0.24%. Other crypto-centric companies like Riot Platforms (NASDAQ:RIOT) and Marathon Digital (NASDAQ:MARA) Holdings also faced declines of 1.67% and 1.61% respectively. In contrast to the overall negative sentiment, Block Inc., formerly known as Square and led by Twitter co-founder Jack Dorsey, saw its shares climb by 1.08%. However, not all tech-related stocks fared well; Tesla (NASDAQ:TSLA)'s shares fell by 1.61%. Additionally, PayPal (NASDAQ:PYPL) Holdings experienced a decrease of 0.46%, NVIDIA Corp (NASDAQ:NVDA)'s stocks slightly went down by 0.31%, and Amplify ETF registered a dip of 0.43%. Today's market movements highlight the volatile nature of cryptocurrencies and their related equities, with investors witnessing both gains and losses across the sector. https://www.investing.com/news/cryptocurrency-news/uniswap-leads-crypto-market-downturn-bitcoin-sees-marginal-gain-93CH-3237939
