2023-11-02 05:04

MicroStrategy, led by CEO Michael Saylor, has persisted in its aggressive investment strategy in Bitcoin despite facing significant losses. The company recently added 6,067 BTC, valued at $167 million, to its digital assets portfolio, bringing the total holdings to 158,400 BTC worth over $5.4 billion as of Thursday. This move reflects the firm's unwavering commitment to Bitcoin as a hedge against inflation amid prospects of increased institutional adoption. Despite the growth in its software business revenue by 3% to $129.5 million, surpassing Bloomberg analysts' estimates, MicroStrategy's focus on cryptocurrencies has resulted in a quarterly loss of $33.6 million. This has pushed the company's total losses beyond $2.2 billion, escalating from last year's $27 million to a staggering $143.4 million. MicroStrategy's CFO Andrew Kang maintains the company's commitment to Bitcoin despite these impairments from market volatility. He highlighted the firm's strategic moves to secure and expand its Bitcoin holdings, which have seen an addition of 6,067 bitcoins since Q2. The firm's recent $5.3 million investment for an additional 155 bitcoins was a response to the surge in Bitcoin's market value. This move came after their initial investment of $250 million back in August 2020 and is aligned with major events in the Bitcoin landscape such as the impending fourth Bitcoin halving and the SEC's pending decision on the first spot Bitcoin ETF. Saylor argued that investing via MicroStrategy offers advantages over ETFs due to potential fees, despite looming threats that the likely approval of Bitcoin ETFs by the SEC could undermine MicroStrategy's position as a go-to investment for Bitcoin exposure and lead to a potential share price decline. https://www.investing.com/news/cryptocurrency-news/microstrategy-bolsters-bitcoin-holdings-despite-widening-losses-93CH-3218112

2023-11-02 03:53

Copyrighted Image by: Reuters. Investing.com-- Bitcoin prices rose on Thursday after the Federal Reserve struck a less hawkish tone than markets were expecting, with broader cryptocurrencies also advancing as the dollar weakened and traders bet on no more interest rate hikes. The world’s largest cryptocurrency by market capital rose nearly 4% to $35,808, hitting its highest level since May 2022. World no. 2 crypto ethereum rose 3% to $1,866.19- a near three-month high. The crypto market was largely encouraged by a weaker dollar and sinking yields, after the Federal Reserve kept interest rates steady on Wednesday, as widely expected. The dollar index slid over 0.5% in Asian trade on Thursday. Fed Chair Jerome Powell struck a seemingly less hawkish tone on future rate hikes. While he still left the door open for one more rate hike this year, Powell also acknowledged that monetary conditions had tightened substantially in recent months. Markets took this as a signal that the Fed may not hike rates any further, and could potentially begin cutting rates by mid-2024. This notion saw traders pivot out of the dollar and into risk-driven assets, benefiting cryptocurrencies. Bitcoin crossed the $35,000 mark for the first time since May 2022. A series of high-profile bankruptcies in the crypto market- including Terra, Three Arrows Capital and most notably FTX, had triggered deep declines in crypto prices over the past year. The world’s largest crypto token had sunk to as low as $15,000 in late-2022. The token has been on a tear in recent weeks, benefiting greatly from speculation that an exchange-traded fund that directly tracks the price of bitcoin will soon be approved in U.S. markets. Applications from Grayscale, Ark Ventures, and most notably- world no.1 asset manager BlackRock Inc (NYSE:BLK), are under consideration by the Securities and Exchange Commission. However, a bulk of these gains also appeared to be driven by a drastic fall in liquidity, as broader, retail interest in the crypto space continued to decline. Bitcoin's trading volumes had dropped sharply from the lifetime highs seen in 2021. On the technical front, bitcoin was also seemingly close to retracing a bulk of its bear market decline over the past year. “Just a few hundred dollars higher at $36k is the 38.2% fibo retracement of the entire bear market decline from $69k to $15.5k,” Tony Sycamore, market analyst at IG said in a tweet. Crypto markets were also awaiting quarterly results from major exchange Coinbase Global Inc (NASDAQ:COIN), which are due later on Thursday. https://www.investing.com/news/cryptocurrency-news/bitcoin-hits-17month-high-as-powell-strikes-less-hawkish-chord-3218090

2023-11-02 03:16

Copyrighted Image by: Reuters Investing.com-- Most Asian currencies strengthened on Thursday, while the dollar fell sharply after mixed signals from the Federal Reserve ramped up bets that the central bank will not raise interest rates further. The Australian dollar was among the best performers for the day, surging 0.7% and blazing past weaker-than-expected trade data. Markets were growing increasingly confident that the Reserve Bank of Australia will raise interest rates when it meets next week, bringing them closer to U.S. levels and making the Aussie appear more attractive. The Japanese yen jumped 0.5%, recovering sharply from a one-year low as government officials continued to threaten intervention in currency markets. But the yen was still above the 150 level to the dollar, having logged steep losses this week following dovish signals from the Bank of Japan. Dollar slides as Powell strikes less hawkish tone The dollar index and dollar index futures fell 0.5% each in Asian trade, extending overnight losses as traders ramped up bets that the Fed was done raising interest rates. While the Fed left rates unchanged, as expected, Chair Jerome Powell struck a less hawkish tone than markets were expecting, by acknowledging that monetary conditions had tightened substantially in recent months. Powell still left the door open to one more hike. But markets took his comments as a sign that the Fed was done with its run of rate hikes, and was likely to cut rates by mid-2024. But even if the Fed doesn’t hike rates further, they are expected to remain above the 5% level until at least end-2024. This presents limited upside for Asian currencies, most of which are nursing steep losses this year due to pressure from rising U.S. rates. Focus was now on key nonfarm payrolls data, due Friday. Any signs of a cooling labor market are likely to give the Fed more impetus to keep rates on hold. Broader Asian currencies advanced on Thursday. The South Korean won rose 0.5% as data showed that Korean inflation grew more than expected in October. The Singapore dollar added 0.2% before key retail sales data due on Friday, while the Malaysian ringgit added 0.4% before an interest rate decision later in the day. Chinese yuan lags as economic jitters persist The Chinese yuan was the worst performer among its Asian peers on Thursday, moving little as a string of weak economic readings from the country kept investors at bay. Purchasing managers index data released earlier this week showed an unexpected decline in Chinese manufacturing activity, raising doubts over an economic recovery in the world’s second-largest economy. A reading on the services sector is due on Friday, and is expected to provide more cues on the Chinese economy. https://www.investing.com/news/forex-news/asia-fx-firms-dollar-sinks-on-bets-of-no-more-fed-rate-hikes-3218079

2023-11-02 01:09

Copyrighted Image by: Reuters. Investing.com -- Oil prices settled higher Thursday, rebounding from a one-month low spurred by lower dollar after traders priced in a diminished chance of more interest rate hikes from the Federal Reserve following a pause on hikes a day earlier. By 18:30 ET (18:30 GMT), the U.S. crude futures settled 2.5% higher at $82.46 a barrel, while the Brent contract climbed 2.6% to $86.85 a barrel. Both benchmarks settled at their multi-weeks lows in the previous session, having dropped around 10% in October. Crude benefits from more dovish Fed view “The Fed’s decision to keep interest rate hikes on pause for a second consecutive time has bolstered economic sentiment and supported commodity prices,” said analysts at ING, in a note. Fed Chair Jerome Powell said in a post-meeting briefing that the Fed still had a long way to go before inflation reached its 2% target. But he also noted that financial conditions had tightened substantially this year, and cited more risks to the economy. The comments drew a sharp contraction in Treasury yields, pushing the dollar to hefty loss as traders priced in a smaller chance of another interest rate hike in December. A weaker dollar benefits commodities, including oil, which are priced in the greenback, as it makes the commodity cheaper for international buyers. The crude market had suffered a difficult October, partially on fears stronger than expected economic data will lead the Fed to keep interest rates higher for longer, potentially weighing on global economic growth and curbing oil demand in China, the world’s largest consumer. Small U.S. crude inventory build The importance of the Fed meeting meant that markets largely traded past the weekly U.S. inventory data, with official numbers from the Energy Information Administration, released Wednesday, showing a slightly smaller-than-expected build in oil inventories over the week to October 27. Distillate inventories saw a smaller-than-expected decline, while gasoline inventories saw an unexpected, albeit limited build. “Total crude oil inventory (excluding SPR) at around 421.9MMbbls remains about 5% below the five-year average at this point in the season,” said ING. Investors will also be watching for developments in the Middle East, which has kept oil markets on edge as a wider conflict could disrupt oil supplies around the region. European demand issues mount However, demand could face a hit in Europe, a major energy consuming region, after data showed manufacturing activity contracted further in the eurozone in October, with the Purchasing Managers' Index falling by 0.3 points on the month to 43.1 - below the 50 level that signals contraction. Additionally, the Bank of England held interest rates steady at a 15-year peak, and said it didn't expect to cut them any time soon as it fights to "squeeze out of the system" the highest inflation of the world's major economies. https://www.investing.com/news/commodities-news/oil-prices-rebound-from-1mth-low-as-rate-hike-doubts-dent-dollar-3218068

2023-11-01 21:04

Copyrighted Image by: Reuters Coinbase (NASDAQ:COIN)'s Ethereum layer-2 network, Base, experienced a significant slowdown in activity following an initial surge earlier this year. The network, which launched on August 9, saw a steady rise in token holders within its ecosystem, with tokens like Echelon Prime and Aero recording 16.83k and 7.77k addresses respectively. The launch of Friend. tech, a decentralized social media platform, and the decentralized exchange Aerodome on Base significantly boosted the network's standing, pushing the total value locked (TVL) on the network beyond $400 million. The base also benefited from collaborations with industry players such as Chainlink. Despite these developments, ITB’s analysis indicates a notable decrease in activity on the Base blockchain. Daily active users dropped by over 64% from an all-time high of 145,479. Additionally, no day since August 25 has seen transaction volume for major protocols exceed $4 million. This slowdown in activity and the direct link of token volumes to protocols incentive programs suggest that these tokens have yet to achieve blue-chip status. Despite an initial retail rush which contributed to an early surge in activity, the volume of transactions for featured protocols hasn't surpassed $4 million. The data from Dune Analytics further corroborates this trend, showing a gradual tapering off of Base's activity. Despite the growth driven by collaborations and new launches, these indicators suggest a cautious approach by investors toward the tokens on Base's platform. InvestingPro Insights In the context of Coinbase's recent developments, it's important to consider some key insights from InvestingPro. The company has seen a declining trend in earnings per share and analysts do not anticipate it will be profitable this year, as per InvestingPro Tips. Additionally, the company's stock price movements have been quite volatile, with a significant price fall over the last three months, although there was a large price uptick over the last six months. Turning to InvestingPro Data, Coinbase has an adjusted market cap of $18.45 billion and a negative P/E ratio of -13.82 as of Q2 2023. The company's revenue for the last twelve months as of Q2 2023 stood at $2580.23 million, showing a decrease of 55.34% compared to the previous period. Furthermore, the price-to-book ratio is at 3.37, indicating that the market values the company at more than three times its book value. These insights underscore the dynamic and challenging landscape that Coinbase operates in. For a more comprehensive understanding of the company's financial performance and future prospects, consider exploring the additional tips and data available on InvestingPro. https://www.investing.com/news/cryptocurrency-news/coinbases-base-network-sees-a-slowdown-after-initial-surge-93CH-3217963

2023-11-01 19:58

Copyrighted Image by: Reuters. The Japanese yen, the world's third most-traded currency, is underperforming, facing similar challenges as the Turkish lira and Argentinian peso over the past decade, according to George Saravelos of Deutsche Bank AG (NYSE:DB). Key factors such as weak yields and external accounts are pushing down the yen's value. This year, the yen's losses against the dollar stood at 15%, while the lira and peso have dropped by 51% and 97%, respectively. Saravelos pointed out that record low real yields due to the Bank of Japan's (BOJ) unique yield curve control and reluctance to raise interest rates have led to a slow-motion capital flight from domestic investors into foreign assets. This is due to the unattractiveness of Japanese government bonds, with Saravelos comparing the low yield of a 5-year JGB with a nominal yield of 50bps to a 5-year US treasury with a real yield of 3%. The yen experienced its largest one-day fall since April following an adjustment to the BOJ's bond yield cap that hinted at a slow shift away from an ultra-loose stance in Japan. Despite this downturn, Masato Kanda, Japan’s top currency official, assured readiness for necessary intervention. However, Saravelos warned that such actions could strengthen the US dollar and speed up capital outflows from Japan as inflation-adjusted local yields deepen into negative territory. Selling dollar-denominated reserves could exacerbate US yields, strengthen the dollar further, and deteriorate Japan's external balance sheet and fiscal position. To stabilize the yen and curb its volatility, Saravelos suggests that significant BOJ rate hikes and halting its quantitative easing campaign are necessary. https://www.investing.com/news/forex-news/yens-underperformance-likened-to-turkish-lira-and-argentinian-peso-93CH-3217657