2023-11-02 12:27

The GBP/EUR exchange rate remained stable at €1.1502 on Thursday, as investors awaited the Bank of England's (BoE) decision on interest rates amidst deteriorating economic conditions in the UK. This comes in the wake of October's manufacturing PMI data, which showed a significant contraction in UK factory activity, fueling fears of a recession. S&P Global Market Intelligence attributed this contraction to market uncertainty and the ongoing cost-of-living crisis, both of which have negatively impacted consumer demand. On the other hand, the euro weakened due to a lack of data on All Saints’ Day and a 0.1% drop in the eurozone's GDP for Q3. This signals an economic slowdown but not necessarily a sharp recession, according to analysts from ING. Furthermore, German employment data indicating an increase in joblessness could put additional downward pressure on the euro. Statements from European Central Bank (ECB) officials are also expected to influence EUR movements. The BoE's decision on interest rates is anticipated to remain at 5.25%. While this could impact the GBP, inflation concerns from the BoE might also pique investor interest. Simultaneously, the GBP/USD exchange rate held firm at $1.2190 on Thursday. The pound is slightly weaker due to uncertainties surrounding the economic outlook, fears of a recession, and persistent inflation. Barclays expects a hawkish stance from the BoE, despite potential adjustments to short-term growth and inflation forecasts. This strategy is intended to prevent premature easing of financial conditions and leave room for future hikes if necessary, mitigating the risk of pushing the UK into a recession. Meanwhile, the USD remains stable after the Federal Reserve's decision to extend its pause on tightening and maintain rates between 5.25% to 5.5%. Despite indications from the Fed of a potential future rate hike, investors remain skeptical. https://www.investing.com/news/forex-news/gbpeur-and-gbpusd-hold-steady-as-markets-await-boes-interest-rate-decision-93CH-3219230

2023-11-02 11:54

Copyrighted Image by: Reuters EDX Markets, a US-based cryptocurrency exchange platform launched in 2022, has announced it will no longer support Bitcoin Cash (BCH). The platform will instead focus its resources on Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC). The decision follows the platform's aim to meet the growing demand from traditional finance firms and cater to both corporations and individual investors across the US. Backed by financial heavyweights including Charles Schwab (NYSE:SCHW), Fidelity, Citadel Securities, Paradigm, Sequoia Capital, and Virtu Financial (NASDAQ:VIRT), EDX Markets has distinguished itself with high liquidity, superior security measures, swift transaction capabilities, and a strong commitment to price discovery. The platform's strategy utilizes liquidity from multiple market makers to enhance transparency and eliminate user misunderstandings. The discontinuation of Bitcoin Cash support is seen as part of the platform's ongoing strategy to streamline its operations and concentrate on currencies that have shown consistent growth and stability. This move is expected to allow EDX Markets to further enhance its service offerings and maintain its edge in an increasingly competitive cryptocurrency market. https://www.investing.com/news/cryptocurrency-news/edx-markets-shifts-focus-away-from-bitcoin-cash-centers-on-bitcoin-ethereum-and-litecoin-93CH-3219123

2023-11-02 11:52

Tether (USDT) has seen a significant increase in its trading volume in Brazil, representing 80% of all Brazilian crypto transactions by 2023, according to the Receita Federal. The surge began in July 2020, and by July 2022, USDT had outpaced Bitcoin, reaching over R$271 billion ($49 billion) by mid-October 2023. This figure is nearly double Bitcoin's trading volume of R$151 billion ($27 billion). The growth of USDT's trading volume has surpassed the combined volumes of key cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Brazilian real stablecoin (BRZ), USD Coin (USDC), and XRP. Despite a downturn of 24.3% in overall crypto transactions during the industry turmoil in 2022, USDT maintained its growth trajectory. Its stability, derived from being pegged to the US dollar, has enhanced its appeal compared to more volatile cryptos like Bitcoin. Brazil's burgeoning interest in cryptocurrency is evident as Chainalysis ranks it ninth globally in digital asset adoption. As one of Latin America's largest crypto markets, the rise of USDT could further bolster Brazil's position in the digital assets and web3 space. The increase in stablecoin trading tripled since 2021 amid a 10.06% inflation rate - the highest since 2015 - and the steady devaluation of the Brazilian real. Trading hit $11.4 billion between January and November alone. Brazilians are exempt from the IOF tax when acquiring stablecoins, unlike foreign currencies, which has fueled this trend further. While other Latin American nations like Argentina favor Maker's DAI, USDT reigns supreme in Brazil. However, the International Monetary Fund (IMF) has issued warnings that stablecoins could potentially replace official currencies and significantly impact monetary policies in developing economies. The Receita Federal do Brasil uses artificial intelligence and network analysis with newly added functionality to its tracking tool to represent relationships between operators and monitor these developments in the crypto market. https://www.investing.com/news/stock-market-news/tethers-trading-volume-soars-in-brazil-outpacing-bitcoin-93CH-3219112

2023-11-02 11:40

Copyrighted Image by: Reuters. Grayscale's Bitcoin Trust (GBTC), a security backed by Bitcoin, has tripled its price this year, from $8.20 to $26.89, significantly outpacing Bitcoin's surge which exceeded the S&P 500 by over 100% to reach $35,381. Holding $21.4B in assets, GBTC's performance has a substantial influence on the crypto market. The price discrepancy between GBTC and Bitcoin is attributed to the closed-ended fund structure of GBTC, which imposes restrictions on quick share redemption for Bitcoin. This structure results in GBTC trading at a premium or discount relative to Bitcoin's net asset value (NAV). Notably, this discount reached nearly 50% in December 2022 but has since reduced to less than 14%. Bracket Labs suggests that this reduction is in anticipation of GBTC's conversion to an exchange-traded fund (ETF), a move that would enable easy share redemption for Bitcoin and align GBTC with its NAV. This belief is further bolstered by BlackRock’s spot Bitcoin ETF application and the SEC's non-appeal of an August ruling against its denial of Grayscale’s GBTC conversion application. In addition, investors are encouraged by the SEC to schedule a closed meeting on November 2, possibly to discuss applications from Blackrock (NYSE:BLK) and Grayscale for spot BTC ETFs. On the same day, cryptocurrencies including Bitcoin and Solana saw a surge after the US Federal Reserve held benchmark interest rates steady. This decision resulted in a weaker dollar, as suggested by Fed Chair Jerome Powell's potential end to rate hikes, causing a 0.5% drop in the Asian dollar index. Consequently, Bitcoin rose 2.73%, trading at $35,402.40, and hit an intraday peak of $35,902.02 - its highest since May 2022. The global crypto market cap jumped over $1.3 trillion within 24 hours, with Bitcoin's cap reaching $689 billion. Among other cryptocurrencies, Solana registered substantial gains, while Ethereum experienced a slight increase. https://www.investing.com/news/cryptocurrency-news/grayscales-bitcoin-trust-triples-in-value-anticipates-conversion-to-etf-93CH-3219055

2023-11-02 11:08

Copyrighted Image by: Reuters. A consortium of Swiss financial institutions is set to revolutionize digital financial markets through the launch of Helvetia Phase III, a project aimed at exploring the use of wholesale central bank digital currency (wCBDC). This initiative marks the first time real Swiss Franc wCBDC will be used to settle digital securities transactions. The project is a collaboration among SIX, the Swiss National Bank (SNB), and six commercial banks, including Banque Cantonale Vaudoise, Basler Kantonalbank, Commerzbank (ETR:CBKG), Hypothekarbank Lenzburg, UBS, and Zürcher Kantonalbank. The pilot program will run from December 2023 to June 2024. Transactions will take place on the SIX Digital Exchange (SDX) platform, a leading distributed ledger technology (DLT)-based platform. The infrastructure from Swiss Interbank Clearing SIC and SIX SIS will be utilized, along with the CO:RE trading platform for repo transactions administered by the Triparty Agent of SIX SIS. The banks will issue digital Swiss Franc bonds settled against wCBDC on a delivery-versus-payment basis using digital bonds eligible for SNB repo transactions. This innovative approach underscores DLT's potential as a catalyst for digital asset adoption and is likely to shape the trajectory of the global financial industry. David Newns, Head of SDX, expressed his confidence in the initiative's potential impact on the financial sector. He stated that this project would usher in a new era of digital finance. The pilot program will assess wCBDC transactions within a live production environment and extend to repo transactions initiated on the CO:RE trading platform. This initiative builds upon insights gained from earlier phases by BIS Innovation Hub, SNB, SIX. The project's success could potentially set a precedent for future digital currency initiatives worldwide. https://www.investing.com/news/forex-news/swiss-digital-finance-pioneers-new-era-with-wholesale-cbdc-project-93CH-3218903

2023-11-02 11:06

Copyrighted Image by: Reuters Northern Data AG (ETR:NB2), a leading Bitcoin miner based in Frankfurt, has secured a €575 million ($650 million) debt financing deal from Tether Group, the stablecoin issuer, on Thursday. The funding is set to expedite investment in its subsidiaries Taiga Cloud and Ardent Data Centres, and promote liquid-cooling technology in Bitcoin mining through Peak Mining. Taiga Cloud is expanding as a Generative AI Cloud Service Provider and Ardent Data is growing its data centre portfolio. The company also plans to rent out $10,000 chips to AI startups. The financing deal follows a collaborative initiative between Northern Data and Tether Group on AI, P2P communications, and data storage solutions. Despite a report by Forbes claiming that Tether holds a 20% stake in Northern Data, the stablecoin issuer refuted the claim. Paolo Ardoino, Tether's incoming CEO, commended Northern Data's ambitious growth strategy. He stated that Tether's Q3 2023 assurance opinion confirmed the accuracy of its financial reserves that primarily consist of U.S. Treasury Bills, totaling $72.6 billion in direct and indirect exposure. Tether's Q3 report showed 85.7% reserves in cash or equivalents which could trigger price changes while ensuring Bitcoin liquidity and stability. This was evidenced by its recent marginal gains. The debt financing deal with Northern Data under standard market conditions marks another significant move by Tether in the cryptocurrency sector. https://www.investing.com/news/cryptocurrency-news/northern-data-secures-575m-debt-financing-from-tether-group-for-expansion-93CH-3218879