2023-10-24 01:34

Copyrighted Image by: Reuters. Investing.com - Investors who rushed into oil thinking it could be a hedge to the Israel-Hamas war are beginning to find out that black gold isn’t quite the haven that gold itself is reputed to be. Crude prices tumbled another 2% Tuesday, adding to the previous session’s 3% rout, wiping out a chunk of the gains from the past two weeks derived from the Middle East’s latest conflict. New York-traded West Texas Intermediate, or WTI, crude for December delivery, settled at $83.74, down $1.75, or 2% on the day. On Monday, WTI fell 2.9%. The US crude benchmark rose 2% last week and around 6% the prior week. Tuesday’s session low was $82.97, putting it not too far from the two-month low of $81.50 struck on Oct. 6, a day before the outbreak of fighting in Gaza. UK-origin Brent crude for December delivery settled at $88.07, down $1.76, or nearly 2%. Brent fell 2.5% in the prior session. Last week, the global crude benchmark rose 1.4%, adding to the prior week’s gain of 7.5%. Tuesday’s session low for Brent was $87.36. Oil’s rally over the past two weeks was driven by global shock over the death toll emanating from Israel’s response to the Oct 7 attacks carried out by Hamas, and concerns of a contagion should the crisis spill over and impact neighboring countries, which include some of the biggest oil producers such as Saudi Arabia, the United Arab Emirates, Iraq and Kuwait. Conversely, the market’s retreat comes amid diplomacy efforts by the United States and other world powers in convincing Israel to delay a ground assault on Gaza while they try and negotiate the release of an estimated 200 Israeli hostages being held by the Palestine militant group. Adding to Wednesday’s bearish mood in oil was dire economic data out of Europe. German readings suggested a recession was underway. Britain's businesses reported another monthly decline in activity, highlighting recession risks ahead of the Bank of England's interest rate decision next week. “I think it’s beginning to dawn on some people that you can’t put black gold and gold in the same bucket when looking for a hedge to this war,” John Kilduff, partner at New York energy hedge Again Capital, said, using popular market parlance to refer to oil. “The crux of the matter is that oil is a commodity that derives its net worth from consumption by demand. Gold, on the other hand, is more of an insurance against economic and political troubles like these. There’s been no direct impact thus far on the oil trade from the crisis and, therefore, it’s only right that crude prices give back the gains they’ve been running up the past two weeks.” Gold hit three-month highs last week as investors sought a hedge to the war, with New York traded futures breaching $2,000 an ounce. It has eased since from those highs but remains largely in a bull market, technical charts show. US weekly oil inventory estimates awaited Market participants were also on the lookout for U.S. weekly oil inventory data, due after market settlement from API, or the American Petroleum Institute. The API will release at approximately 16:30 ET (21:30 GMT) a snapshot of closing balances on U.S. crude, gasoline and distillates for the week ended Oct 20. The numbers serve as a precursor to official inventory data on the same due from the U.S. Energy Information Administration on Wednesday. For last week, analysts tracked by Investing.com expect the EIA to report a crude stockpile drop of 0.55M barrels, to add to the 4.491M-barrel reduction reported during the week to Oct 13. On the gasoline inventory front, the consensus is for a draw of 0.1M barrels over the 2.371M-barrel decline in the previous week. Automotive fuel gasoline is the No. 1 U.S. fuel product. With distillate stockpiles, the expectation is for a drop of 1M barrels versus the prior week’s deficit of 3.185M. Distillates are refined into heating oil, diesel for trucks, buses, trains and ships and fuel for jets. (Peter Nurse and Ambar Warrick contributed to this item.) https://www.investing.com/news/commodities-news/oil-down-another-2-on-europe-woes-israel-pause-on-gaza-ground-assault-3206334

2023-10-24 01:09

Copyrighted Image by: Reuters. Ethereum co-founder Vitalik Buterin has shed light on the significant challenges facing Ethereum's proof-of-stake network, according to details shared at the Ethereum Hong Kong Hackathon. His discussion focused on issues such as centralized staking, inefficient transaction processing, and layer two scaling difficulties. Buterin identified four main hurdles with layer-two blockchain scaling. These include the security and decentralization of proof systems like zero-knowledge (ZK) proofs used for off-chain transaction validation; sequencing decentralization or transaction ordering before block inclusion; cross-L2 wallets that facilitate interaction with multiple layer two solutions without wallet switching; and data availability space, which refers to the challenge of storing the entire blockchain data for transaction verification. Critics suggest that ZK proofs face centralization due to their dependency on hardware. Transaction ordering is managed by miners in layer one but potentially centralized entities in layer two. This centralization could pose a threat to the security and integrity of the network. Buterin concluded his talk by emphasizing the importance of maintaining a robust base layer while cautiously enhancing certain aspects of its capabilities. This statement underscores the delicate balance required to evolve Ethereum's proof-of-stake network while preserving its foundational principles. The Ethereum co-founder's acknowledgement of these challenges and his call for cautious enhancement highlight the complex task of evolving a decentralized network. As Ethereum continues to grow and adapt, these discussions will likely remain central to its development strategy. https://www.investing.com/news/cryptocurrency-news/ethereum-cofounder-highlights-challenges-in-proofofstake-network-93CH-3206332

2023-10-24 00:48

Copyrighted Image by: Reuters Investing.com-- Bitcoin, the world’s largest cryptocurrency, rose sharply on Tuesday amid increased speculation that the U.S. Securities and Exchange Commission was close to approving a spot exchange-traded fund. The token surged 11% to $33,433.8, hitting its highest level since May 2022. It also broke above the $30,000 level for the first time since July. World no.2 crypto ethereum also rose nearly 7%. A legal battle between the SEC and digital assets firm Grayscale came to a close on Monday in the latter’s favor, after the D.C. Circuit Court of Appeals formally ruled that the agency wrongfully rejected Grayscale’s application for an ETF that directly tracks the price of Bitcoin. Additionally, media reports suggested that a spot Bitcoin ETF application by Blackrock was also seen moving closer to fruition, with the iShares Bitcoin Trust now appearing to have been listed on the website of the Depository Trust and Clearing Corporation. While neither of the two news pieces offered any concrete signs that a spot Bitcoin ETF had been approved, they ramped up optimism over an eventual approval this year, which is expected to attract more institutional investors into a severely depleted crypto market. Recent weakness in the dollar also somewhat aided crypto markets, amid increasing bets that the Federal Reserve was done hiking interest rates this year. BlackRock Inc (NYSE:BLK), Grayscale, Ark Ventures and VanEck are among the several applicants for a spot Bitcoin ETF in the U.S., after the SEC rejected a series of applications over the past year. Its repeated rejection of Grayscale’s proposal had attracted a lawsuit from the digital assets firm, which had ended in the firm’s favor this week. A spot Bitcoin ETF is expected to attract more capital into the crypto market, which is reeling from a severe lack of liquidity following a price crash and several high-profile bankruptcies over the past year. This was evident with Bitcoin volumes languishing at multi-year lows, as retail interest in crypto dried up after major players including Binance and Coinbase Global Inc (NASDAQ:COIN) were slapped with allegations of fraud and operating unlicensed exchanges. https://www.investing.com/news/cryptocurrency-news/bitcoin-rallies-11-to-17mth-high-amid-spot-etf-hopes-3206325

2023-10-24 00:42

Copyrighted Image by: Reuters. Bitcoin's market dominance has reached a two-year high of 52.45% on Monday, marking a significant increase from its 38% at the start of 2023. The rise in Bitcoin's dominance coincides with an 81% increase in its price since January, highlighting the strong investor interest in the digital currency amid global uncertainties. Crypto analyst Rebecca Stevens attributes this surge to fears of inflation, geopolitical turmoil, and a fragmented U.S. government, which have collectively reinforced Bitcoin's position as a hedge against worldwide uncertainties. As the digital currency approaches spot ETF approval, experts suggest that without a substantial Bitcoin rally, altcoins may struggle to attract significant investments. The current market trend suggests a growing preference for Bitcoin over other cryptocurrencies, which is reflected in its increasing market share. This trend is likely influenced by Bitcoin's potential as a safe haven asset in times of economic and political instability. As Bitcoin continues to solidify its position in the market, it remains to be seen how this will affect the broader cryptocurrency landscape. However, as experts point out, the future of altcoins could largely depend on Bitcoin's performance in the face of ongoing global uncertainties. https://www.investing.com/news/cryptocurrency-news/bitcoin-dominance-surges-amid-inflation-fears-and-geopolitical-unrest-93CH-3206324

2023-10-23 22:44

Copyrighted Image by: Reuters. Bitcoin Climbs 13% In Rally Investing.com - Bitcoin was trading at $33,816.9 by 18:42 (22:42 GMT) on the Investing.com Index on Monday, up 12.56% on the day. It was the largest one-day percentage gain since October 23. The move upwards pushed Bitcoin's market cap up to $628.3B, or 52.16% of the total cryptocurrency market cap. At its highest, Bitcoin's market cap was $1,275.5B. Bitcoin had traded in a range of $29,891.4 to $33,816.9 in the previous twenty-four hours. Over the past seven days, Bitcoin has seen a rise in value, as it gained 13.16%. The volume of Bitcoin traded in the twenty-four hours to time of writing was $29.4B or 51.91% of the total volume of all cryptocurrencies. It has traded in a range of $28,096.8770 to $33,929.8516 in the past 7 days. At its current price, Bitcoin is still down 50.98% from its all-time high of $68,990.63 set on November 10, 2021. Elsewhere in cryptocurrency trading Ethereum was last at $1,756.25 on the Investing.com Index, up 7.33% on the day. Tether USDt was trading at $1.0011 on the Investing.com Index, a gain of 0.05%. Ethereum's market cap was last at $208.4B or 17.30% of the total cryptocurrency market cap, while Tether USDt's market cap totaled $84.2B or 6.99% of the total cryptocurrency market value. https://www.investing.com/news/cryptocurrency-news/bitcoin-climbs-13-in-rally-3206310

2023-10-23 21:25

Copyrighted Image by: Reuters. In a significant development for the cryptocurrency sector, Grayscale Investments LLC's proposal for a Bitcoin-based exchange-traded fund (ETF) has been upheld by a federal appeals court. On Monday, Judge Neomi Rao overturned the US Securities and Exchange Commission's (SEC) previous denial of Grayscale's ETF proposal, criticizing it as "arbitrary and capricious". This decision potentially opens up the crypto sector to substantial investment from everyday investors. Following this announcement, Bitcoin's value surpassed $31,000 for the first time since July. The cryptocurrency market is closely monitoring efforts by asset managers, including BlackRock Inc (NYSE:BLK)., to secure approval for their respective ETFs. Notably, a false report about BlackRock's Bitcoin ETF approval previously led to a temporary 10% Bitcoin price surge. The SEC, under Chair Gary Gensler, has decided not to appeal against Grayscale's ruling. This decision was greeted with enthusiasm by advocates of cryptocurrency. Despite this positive news, the sector's volatility is highlighted by events such as the recent FTX exchange collapse. Grayscale has applied to list its Trust shares on NYSE Arca, pending regulatory approval. The discount on Grayscale Bitcoin Trust has significantly narrowed in anticipation of an ETF conversion. However, despite the approval of Bitcoin futures in 2021, ETFs investing in Ether futures have struggled to gain traction. The cryptocurrency sector's estimated value stands at about $1 trillion, with Bitcoin accounting for half of it. Judge Neomi Rao's mandate in August marked a turning point in Grayscale Investments LLC's fight with the SEC. The case is now back at the SEC, which had seen similar approvals before. https://www.investing.com/news/cryptocurrency-news/grayscale-wins-appeal-for-bitcoin-etf-paving-way-for-mainstream-crypto-acceptance-93CH-3206283