2023-10-23 14:35

Copyrighted Image by: Reuters. In an interview with CNBC, EY's global blockchain leader, Paul Brody, has emphasized the mounting interest in Bitcoin from retail and institutional investors. This surge in demand is expected to escalate further pending the approval of a Bitcoin ETF by the SEC. Brody noted that family offices are already actively participating in the market, while institutional investors are poised to invest trillions into Bitcoin once an ETF receives regulatory clearance. Brody addressed the unique volatility of Bitcoin prices, drawing parallels with gold and underscoring its relative inelasticity compared to other inflation and hedge-related activities. He also predicted a decrease in Bitcoin issuance as prices continue to climb. While traditional fiat currencies will still hold sway, Brody foresees Central Bank Digital Currencies (CBDC) and payment stablecoins emerging as potential alternatives. He also expects geopolitical events and upcoming elections to drive an increase in Bitcoin adoption. Highlighting a positive trend in digital asset investment products, Brody pointed out the consistent inflows of $66 million over four successive weeks. The US SEC's crypto regulatory process is currently under intense global scrutiny as it has not yet approved any spot Bitcoin ETFs. Firms like Grayscale Investments, ARK Investment, BlackRock (NYSE:BLK), and Fidelity have submitted applications for various Bitcoin ETF products to the SEC, awaiting responses. Grayscale recently filed an S-3 form with the SEC to list its Grayscale Bitcoin Trust on NYSE Arca after winning a lawsuit for a spot Bitcoin ETF review. Eric Balchunas, a senior ETF analyst at Bloomberg, sees ARK Invest and 21Shares' recent amendment to the spot Bitcoin ETF in mid-October 2023 as a positive sign of progress and potential approvals. Meanwhile, Big Questions magazine is investigating NSA's involvement in Bitcoin's creation. https://www.investing.com/news/cryptocurrency-news/bitcoin-etf-anticipation-fuels-institutional-investment-demand-93CH-3205982

2023-10-23 14:34

Copyrighted Image by: Reuters. The cryptocurrency ecosystem is poised for a significant shift as the prospect of Bitcoin Spot Exchange-Traded Funds (ETFs) gains traction. This development is expected to boost demand for cryptocurrencies, particularly Bitcoin and Bitcoin Spark. Today, the industry is abuzz with anticipation around these ETFs, which are designed to serve as regulated channels for investors into the world of cryptocurrencies. The move is seen as a step towards democratizing crypto investments. Bernstein analysts project that the introduction of a Bitcoin ETF could unlock an estimated $600 billion in new demand. This figure significantly overshadows Bitcoin's current market cap, which stands close to $550 billion. Signs of a policy shift from the U.S. Securities and Exchange Commission (SEC) have been observed, despite its initial resistance to such developments. The SEC has been instructed to reconsider its previous denial of the Bitcoin ETF application from Grayscale, a move that could potentially trigger substantial new investments in the crypto market. Prominent industry players like Coinbase (NASDAQ:COIN) are pushing for updated regulations to facilitate this transition. The approval of a Bitcoin ETF could serve as a symbol of mainstream acceptance for cryptocurrencies. This could lead to more regulated and accessible Bitcoin investment opportunities and set a global precedent, accelerating the adoption of cryptocurrencies worldwide. https://www.investing.com/news/cryptocurrency-news/bitcoin-spot-etfs-signal-a-potential-surge-in-crypto-demand-93CH-3205992

2023-10-23 14:20

Copyrighted Image by: Reuters Bitcoin has made a significant stride, breaking past the $30,000 resistance level once again today. This development has led market analysts such as CredibleCrypto to ponder the potential implications of higher resistance levels at $35,000 or $37,000. With Bitcoin's price listed over $30,500 and a substantial 24-hour trading volume of $15.4 billion according to CoinGecko data, the global cryptocurrency capitalization has seen gains. Market participants are keenly observing a monthly close above this pivotal point to affirm bullish momentum. The BTC/USDT weekly chart and CryptoQuant data have shown a decrease in Bitcoin Exchange Reserves alongside an uptick in long position traders. This suggests a reduction in sell pressure and a positive market trajectory. In the same vein, crypto influencer @CryptoGodJohn has proposed that the ongoing Bitcoin trend might not see major price dips or lower-level retests as anticipated by many. Companies with heavy investments in Bitcoin have experienced improved positions due to the cryptocurrency's price surge. MicroStrategy, Marathon, and Coinbase (NASDAQ:COIN) are among those benefiting from this uptick. MicroStrategy currently holds 158,245 Bitcoin worth approximately $4.5 billion. According to Bitcoin Treasuries data, it sports a NgU ratio of 1.03x, indicating profitability amidst the rebounding Bitcoin market. https://www.investing.com/news/cryptocurrency-news/bitcoin-breaches-30000-resistance-stirs-market-optimism-93CH-3205974

2023-10-23 13:15

Copyrighted Image by: Reuters. Investing.com - The “no free lunch” metaphor is becoming clearer for the long-oil community that had doubled down on the crisis in Gaza to send the market higher than probably warranted. Crude prices tumbled some 3% Monday -- with global benchmark Brent returning to below the key $90 per barrel mark -- as diplomatic overtures for Gaza doused the bull sentiment that had sent the market up as much as 10% over the past two weeks. US President Joe Biden visited Israel last week, and the leaders of France and the Netherlands will visit this week in search of a solution for the conflict. “Any prospect of de-escalation in Gaza and Israel will help to cool the moves we've seen in recent weeks,” Craig Erlam, analyst at online trading platform OANDA, said as Israel held off launching a ground assault on Gaza to provide time to negotiate the release of more hostages and create a window for diplomacy, even though it kept up with its aerial bombardment of the area. New York-traded West Texas Intermediate, or WTI, crude for December delivery, settled at $85.49, down $2.59, or 2.94%. WTI rose 2% last week, adding to the prior week’s gain of around 6%. UK-origin Brent crude for December delivery settled down $2.33, or 2.5%, at $89.83 per barrel. Last week, the global crude benchmark rose 1.4%, adding to the prior week’s gain of 7.5%. Speculators boosted their net long positions in Brent futures over the last reporting week, doubling down on their bets that the situation in Gaza will worsen. Adding to sentiment was data such as that by Norway, which reported last week that crude production in the Scandinavian country fell to 1.64 million barrels per day in September, down from 1.79 million barrels in August and below forecasts of 1.73 million barrels. Wall Street vs global diplomacy Many on Wall Street seem to think crude prices should be higher due the relative proximity of the showdown in Gaza to some of the biggest oil producers, such as Saudi Arabia, the United Arab Emirates, Iraq and Kuwait. While Israel barely registers in the global oil trade, the Strait of Hormuz straddling the current war zone is a key chokepoint for the movement of crude, where a fifth of all oil passes through the waters there. Also, the almost daily saber-rattling against Israel by avowed Hamas supporter and fifth largest oil producer Iran — and concerns of reprisals against Tehran by the Israelis and their main ally, the United States — has added to concerns that something untoward might happen soon. No demonstrable risk for oil trade yet from this war Yet, some oil traders see the conflict for what it is — a major political event that hasn’t shown any demonstrable risk so far to the crude trade. The crux of it is oil is a commodity that attains its value from demand-related consumption. Unlike gold or the dollar, it’s not a haven to keep benefiting from a mere figment of imagination that supplies are at a risk and, therefore, prices have to keep rising — when the reverse is the case. “There’s no such thing as a free lunch, and that applies to oil bulls who have been riding this crisis in Gaza for free, despite its non-material impact thus far on the trade,” said John Kilduff, partner at New York energy hedge fund Again Capital. A senior Israeli official told CNN earlier on Monday that there will be “no ceasefire” in Gaza amid US and Qatari efforts to free more than 200 hostages held by Hamas. The official said he was “not aware” of US calls for a delay to Israel's expected Gaza ground operation, although he concurred that both Israel and the US want all the hostages released “as quickly as possible.” “Humanitarian efforts cannot be allowed to impact the mission to dismantle Hamas,” added the official, whose identity was withheld by CNN. But as with any conflict with decision-making at multiple levels, the notion that peace was given a chance still persevered. “Price direction in the oil market continues to be dictated by developments in the Middle East,” analysts at ING said, noting Monday’s declines coincided with the “ground operation into Gaza appearing to have been delayed”. Chevron (NYSE:CVX) to buy Hess (NYSE:HES) for $53 billion In corporate news on the energy front, Chevron, the second largest US oil and gas producer, announced Monday a plan to buy American rival Hess for $53 billion. This follows larger rival Exxon’s deals since July for top U.S. shale producer Pioneer Natural Resources (NYSE:PXD) and Denbury, and reflects a desire for oil and gas assets in a world seeking lower-risk future fossil supplies and higher shareholder returns. Additionally, the International Energy Agency will release its World Energy Outlook on Tuesday, which will likely cover long term energy supply and demand trends. (Peter Nurse and Ambar Warrick contributed to this item) https://www.investing.com/news/commodities-news/oil-tumbles-3-as-world-powers-work-on-diplomacy-for-gaza-3205896

2023-10-23 12:28

Copyrighted Image by: Reuters. The British Pound (GBP) is outperforming as the strongest major currency with the Australian Dollar (AUD) lagging, while the U.S. Dollar (USD) exhibits mixed performance. This comes as U.S. bond yields rise, reflecting market expectations for sustained high-interest rates driven by a robust U.S. economy. The Federal Reserve Chair has hinted at a tighter monetary policy, but increasing market interest rates may diminish the necessity for central bank intervention. Crude oil prices have seen a downturn amidst ongoing Israeli airstrikes in Gaza, following an earlier surge in U.S. crude prices due to concerns about potential supply disruptions from an escalating Israel-Hamas conflict. In contrast, Bitcoin is trading higher while gold and silver prices are experiencing a decline. U.S. stocks have been on a downward trend for the fifth consecutive day, with NASDAQ and S&P indices down for four days. Futures for the Dow Industrial Average, S&P index, and NASDAQ all imply declines. This week will witness earnings reports from major companies including Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL), Meta (NASDAQ:META), Amazon (NASDAQ:AMZN), Phillips, Logitech (NASDAQ:LOGI), Coca-Cola (NYSE:KO), and Verizon (NYSE:VZ). Economic data set to be released this week include third-quarter GDP growth figures and the core personal consumer expenditures price index. Concurrently, both European equity markets and Asia Pacific markets are trading lower. The U.S. debt market is witnessing higher yields due to substantial U.S. borrowing contributing to the fiscal 2023 budget deficit. Changes in yield curve steepness are evident in the 2 – 10-year spread and the 2 – 30-year spread. European benchmark 10-year yields are also trading higher. Amidst these developments, the Federal Reserve is expected to announce a rate decision soon. High concerns persist over a potential Israeli ground invasion of Gaza which could further impact the oil supply. https://www.investing.com/news/forex-news/gbp-strengthens-aud-lags-as-us-bond-yields-rise-93CH-3205777

2023-10-23 11:49

Copyrighted Image by: Reuters. China's aluminium market has shown resilience this year, with prices on the Shanghai Futures Exchange (SHFE) climbing over 1%, contrasting global trends that saw an over 8% slump on the London Metal Exchange (LME). The strength of China's green sector amidst a slow economic recovery is largely credited for this divergence. An open arbitrage window, created by SHFE outperforming LME, has significantly increased aluminium imports into China. Russia has emerged as a primary source of these imports, due to self-sanctioning by Western buyers following Russia's invasion of Ukraine. As a result, China accounted for 87% of its total aluminium imports from Russia during the first eight months of 2023. Despite the surge in imports, domestic aluminium production in China has also reached new highs. This increase is primarily attributed to an improved hydropower supply in Yunnan province. However, potential disruptions from the forthcoming dry season could lead to a decrease in output and a surge in imports. Low domestic aluminium inventories have further underscored the robust domestic demand for the metal, with SHFE stocks falling to their lowest since March 2019. Beijing's decarbonisation efforts have significantly driven aluminium demand, especially in renewable energy-related manufacturing. This trend is evident in the rapid growth of China's new energy vehicles (NEV) sector, which experienced a year-on-year increase of over 37% in the first eight months of this year. Aluminium's critical role in battery electric vehicles further emphasizes its importance in this sector. The solar industry, another major consumer of aluminium, continues to grow despite challenges from the pressured construction sector. With China leading in solar photovoltaic (PV) capacity additions, the continued expansion of green sectors is expected to counterbalance traditional sector weaknesses and enhance demand for green metals like aluminium. https://www.investing.com/news/commodities-news/aluminium-demandi-in-china-boosted-by-green-sector-growth-93CH-3205683