2024-02-13 05:11

Copyrighted Image by: Reuters. Investing.com-- Most Asian currencies weakened on Tuesday, while the dollar firmed as markets hunkered down before key U.S. inflation data that is widely expected to factor into the path of interest rates. The inflation data comes after a chorus of Federal Reserve officials warned that the central bank was in no hurry to begin trimming interest rates in 2024- a trend that bodes well for the dollar and poorly for risk-heavy, high-yield currencies. A week-long trading holiday in China and Hong Kong kept Asian trading volumes muted. But the Chinese yuan fell slightly in offshore trade. Japanese yen nears 150 level on dovish BOJ cues The Japanese yen was among the worst-performing regional units in recent sessions, losing 0.1% on Tuesday and trading at 149.53- a near three-month low and just a hair away from breaking above the 150 level, which heralds more losses in the yen. Losses in the yen came chiefly after a top Bank of Japan official signaled that even when the bank begins raising interest rates this year, it was unlikely to raise rates aggressively. This scenario presents little relief to the yen, which was pressured chiefly by a widening gulf between local and U.S. interest rates- a trend that is worsened by the prospect of higher-for-longer U.S. rates. Fourth-quarter Japanese GDP data due this Friday is expected to show a limited improvement in growth, after an unexpected contraction in the third quarter. Broader Asian currencies trended lower. The Australian dollar lost 0.3% and traded close to a three-month low. A private survey showed that Australian consumer sentiment rebounded to a 10-month high in early-February, amid increased optimism over easing inflation and no more interest rate hikes. The South Korean won was flat, while the Singapore dollar shed 0.1%. The Indian rupee tread water after data on Monday showed Indian consumer price index (CPI) inflation eased as expected in January, but remained well above the Reserve Bank of India’s 4% annual target. Dollar edges higher, CPI data awaited for rate cut cues The dollar index and dollar index futures rose 0.1% each in Asian trade, and remained within sight of a recent three-month high as traders looked to later interest rate cuts this year. CPI data is expected to show inflation eased in January, but remained well above the Fed’s 2% annual target- which gives the bank little impetus to begin cutting interest rates early. The dollar had shot up in late-January as traders began sharply scaling back bets that the Fed will begin cutting interest rates in March and May. The CME Fedwatch tool showed markets pricing in an only 45.4% chance for a 25 basis point cut in June. https://www.investing.com/news/forex-news/asia-fx-weakens-dollar-edges-up-with-cpi-data-in-sight-3301700

2024-02-13 02:25

Copyrighted Image by: Reuters. Investing.com-- Oil prices settled higher on Tuesday, as ongoing geopolitical tensions and a healthier demand outlook supported sentiment offsetting a surge in the dollar following stronger inflation data. At 14:30 ET, the West Texas Intermediate crude futures rose $0.95 cents to $77.98 a barrel, while brent oil futures expiring in April $0.77 cents to $82.77 a barrel. Both contracts were closing in on two-week highs, although trading volumes were held back by a week-long holiday in China. OPEC Sees Higher Demand OPEC sees the demand for crude oil rising by 2.2 million barrel per day this year, with to 106.2 million barrels per day next year, with non-OPEC production expected to rise 1.2 million, pointing to demand outstripping supply. The forecast was in contrast, however, the International Energy Agency said growing oil output from the America will more than offset demand growth this year. The update come as OPEC said it was on track to meet its production cut agreement, with "Iraq saying it is now meeting its output quota under the accord. Its production is now capped at 4mb/d," ANZ Research said in a note. Stronger dollar brushed aside The dollar surged as investors dialled back expectation for a earlier rate cut, with the first cut now expected in June rather May. Headline annual U.S. inflation slowed to 3.1% pace in January, from 3.4% a month earlier, but that was still above economists estimates of 2.9%. A stronger dollar makes oil, priced in the U.S. dollars, more expensive for buyers in other currencies, weighing on demand. Geopolitical tensions remain in focus as Gaza ceasefire talks resume The US, Israel, Egypt and Qatar resumed talks on a ceasefire deal to temporarily halt the step-up in escalations in Gaza as Israel prepares for a ground invasion of the Southern Gaza city. The prospect of a breakthrough, however, remain uncertain after Israeli Prime Minister Benjamin Netanyahu rejected a Hamas proposed ceasefire deal, stressing that a "total victory" was within reach. Adding to the geopolitical tensions, Houthi rebels resumed their attacks on ships in the Red Sea, hitting an Iran-bound grain ship. https://www.investing.com/news/commodities-news/oil-prices-tread-water-ahead-of-cpi-data-opec-report-3301658

2024-02-13 01:47

Investing.com-- The price of bitcoin hit an over two-year high on Tuesday, with the world’s largest cryptocurrency crossing key levels amid consistent capital flows into the recently approved spot exchange-traded funds. Bitcoin rose 3.2% to $50,160.2 by 20:13 ET (05:13 GMT), crossing the $50,000 mark for the first time since December 2021. The token was now about $19,000 away from making new record highs. Gains in bitcoin came amid consistent capital flows into the recently-approved spot ETFs, which saw net inflows of over $1 billion in the past week, digital asset management firm CoinShares said in a report on Monday. BlackRock Inc's (NYSE:BLK) iShares Bitcoin Trust (NASDAQ:IBIT) saw the biggest inflows for the week, at about $690 million. The token also benefited from slowing outflows from Grayscale Bitcoin Trust (NYSE:GBTC), which gained approval from the Securities and Exchange Commission (SEC) last month to convert into a spot ETF. This conversion saw the release of about $2 billion worth of bitcoin onto the open market, which caused steep losses in the price of the cryptocurrency. The token had fallen as much as 20% after the approval of the spot ETFs, but has now recouped all of those losses. Analysts at Bernstein noted that an element of “fear of missing out”, or FOMO, was also attracting some retail interest in the cryptocurrency, and that the token was well-placed to hit record highs on FOMO-driven buying. Bernstein expects flows into the new ETFs to cross $10 billion in 2024. Markets were also focused squarely on an upcoming halving event this year, which is expected in April. The event cuts the rate at which new bitcoins are generated by 50%, and has historically spurred a rally in the cryptocurrency. The most recent halving took place in May 2020, with the lead-up to the event seeing a 50% spike in bitcoin prices. Optimism over the potential approval of a spot ethereum ETF drove gains in broader crypto markets, with the world no.2 cryptocurrency rising 6.3% to a one-month high of $2,672.25. U.S.-listed crypto stocks saw strong gains on Monday, with exchange Coinbase Global Inc (NASDAQ:COIN) rising 3.8%, while bitcoin miner Marathon Digital Holdings Inc (NASDAQ:MARA) surged 14.2%. MicroStrategy Inc (NASDAQ:MSTR), which is the largest corporate holder of bitcoin, rose 11%. But the broader crypto market is still struggling with decreased retail interest, especially following a series of high-profile frauds, bankruptcies and regulatory crackdowns over the past two years. This was evident with spot trading volumes in bitcoin remaining well below their 2021 and 2017 peaks. The lower trading volumes also factored into the token’s rapid gains through 2023, as bitcoin benefited from an absence of active sellers. The SEC and Coinbase are currently embroiled in a legal battle that could dictate the nature of crypto tokens and cause a shift in their regulatory standing. https://www.investing.com/news/cryptocurrency-news/bitcoin-breaks-above-50k-as-spot-etfs-see-strong-inflows-3301633

2024-02-12 17:24

Copyrighted Image by: Reuters Bitcoin Briefly Tops $50,000 Bitcoin Briefly Tops $50,000 https://www.investing.com/news/cryptocurrency-news/bitcoin-briefly-tops-50000-432SI-3301275

2024-02-12 15:15

DRESDEN, N.Y. - Greenidge Generation Holdings Inc. (NASDAQ:GREE), a cryptocurrency datacenter and power generation company, announced today an investment agreement with Armistice Capital totaling $6 million, aimed at bolstering the company's growth strategy. The investment is expected to support Greenidge's expansion into new low-cost power centers, enhance its bitcoin mining capabilities, further develop its engineering, procurement, and construction management (EPCM) business, as well as fund new AI infrastructure/data centers. Greenidge CEO Jordan Kovler stated that the capital infusion from Armistice Capital underscores the company's ongoing transformation and growth efforts. According to the agreement, Armistice Capital will initially invest $6 million in exchange for 1,260,505 shares and pre-funded warrants, with each share priced at $4.76. Additionally, Armistice will receive warrants to purchase an extra 1,260,505 shares at an aggregate price of $6.62 million, or $5.25 per share. The investment follows Greenidge's recent announcement of its first profitable quarter in two years. The company reported preliminary financial and operating results for the fourth quarter of 2023, with Net Income ranging from $1.4 million to $2.4 million, Adjusted EBITDA between $1.6 million and $2.6 million, and Earnings Per Share from $0.18 to $0.32. In 2023, Greenidge also reduced its debt by $85.3 million, which represented over 54% of its total debt. Greenidge Generation Holdings Inc. focuses on vertically integrated power generation, specializing in cryptocurrency mining and related infrastructure development. The details provided are based on a press release statement from Greenidge Generation Holdings Inc. InvestingPro Insights As Greenidge Generation Holdings Inc. (NASDAQ:GREE) secures a $6 million investment from Armistice Capital to enhance its growth strategy, it's important to consider the company's financial health and market performance. According to InvestingPro data, Greenidge has a market capitalization of approximately $37.98 million. Despite a significant return over the last week of 43.81%, the company's stock price has experienced substantial volatility, which is reflected in a high price volatility score from InvestingPro. InvestingPro Tips highlight the company's challenges, such as its significant debt burden and a cash burn that is quickly depleting its reserves. Additionally, the company's short-term obligations exceed its liquid assets, which may pose liquidity risks. Analysts on InvestingPro predict that the company will be profitable this year, which could be a pivotal point for Greenidge as it aims to leverage the fresh capital for expansion. Investors interested in a deeper dive into Greenidge's financials and potential can access more InvestingPro Tips by visiting https://www.investing.com/pro/GREE. There are 12 additional tips available, offering insights that could help in making informed investment decisions. For those looking to subscribe to InvestingPro for year-round insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. https://www.investing.com/news/cryptocurrency-news/greenidge-secures-6-million-investment-for-expansion-93CH-3301112

2024-02-12 12:21

Copyrighted Image by: Reuters Prepare for a Bitcoin FOMO rally to record highs - Bernstein On Friday, Bitcoin crossed the $48,000 mark, registering a 13% increase over the past week and edging closer to the key $50,000 resistance level. Despite a significant upturn in 2023, with a 160% increase, and maintaining resilience in 2024, the current interest in Bitcoin still falls short of the peaks seen in 2017 and 2021. However, Bitcoin’s best days are yet to happen as the ETF-driven market fuels fears of missing out (FOMO), Bernstein analysts said in a note. In this context, they believe BTC is well-placed to soar to new record highs. The analysts observed that Bitcoin ETFs are becoming clear price catalysts for Bitcoin. They note a significant decrease in Grayscale Bitcoin Trust’s outflows, now down to approximately $50 million, while new ETFs have attracted close to $1 billion in the last two trading days. This shift has markedly improved market sentiment and while the market swiftly reacted to news of ETF approvals, it has yet to fully account for the inflows into funds and the impending scarcity of supply. “We believe, the money is still coming from the ‘believers’, who have discovered an easy way to get Bitcoin in their broker accounts via the ETFs,” the analysts said. Meanwhile, the disbelievers remain hesitant. It appears that the initial interest in Bitcoin is coming from new investors who, while not yet investing, are keen to learn more about it. Bernstein’s initial forecast anticipated a rally in Bitcoin's value after its halving event. Yet, considering the extraordinary success of the ETF launch—the best in 30 years—and the continuous inflow into ETFs, they now expect a significant Bitcoin rally to occur before the halving. Therefore, those considering investment in Bitcoin mining companies, and awaiting to assess the risks post-halving, are advised to pick their preferred companies now and maintain their investments through the halving event in April 2024, analysts commented. Bernstein’s top picks in this category are Riot Platforms (NASDAQ:RIOT) and CleanSpark (NASDAQ:CLSK). https://www.investing.com/news/cryptocurrency-news/prepare-for-a-bitcoin-fomo-rally-to-record-highs--bernstein-3300634