2024-03-20 05:16

Copyrighted Image by: Reuters Bitcoin price rallied on Wednesday, reversing previous losses on back of a dovish Federal Reserve meeting. At the time of writing, Bitcoin price was trading at $66,788, up 4.5% on the day. Earlier in the day, a broader risk-off move in currency markets saw traders pivot into the dollar while collecting profits in Bitcoin after it surged to record highs of over $73,000 earlier in March. The dollar index hit a two-week high before the conclusion of a Fed meeting later in the day, where the central bank is widely expected to keep rates steady and offer more cues on when it plans to begin cutting interest rates. Bitcoin price had fallen as far as $60,771.1 earlier in the day. Adding to the downward pressure on Bitcoin, the token saw a flash crash on crypto exchange BitMEX, where it sank as low as $8,900 following a series of massive sell orders on Tuesday. BitMEX said it was investigating potential wrongdoing. Since reaching its recent all-time highs, the entire cryptocurrency market had lost approximately $400 billion in value, with significant declines also seen in other digital currencies like Ether and Solana. However, ahead of the FOMC meeting, Bitcoin and other cryptocurrencies have made some gains. "We are seeing a natural market shift at this point, which is a culmination of several important factors," Nejc Krzan, head of NiceX Exchange, told Investing.com. Among other things, he added that "many investors who recently came into the market who were hoping the BTC price would continue to break through the all time high and rise further, have sold to take short term gains." This is likely the key reason why Bitcoin price is correction from fresh record highs. Looking ahead, Jonny Huxtable, CEO of LinkPool, told Investing.com that they "anticipate sideways, downwards chop going into the halving and for some time after it similar to the 2015-2017 uptrend." "BTC is seeing more demand than ever, and with its daily output about to be cut in half, we anticipate an unprecedented market reaction to the great supply shock BTC will face to date," he added. Dovish Fed pushes market into risk-on mode The Federal Open Market Committee has given a boost to risk sentiment by adjusting growth and rate projections upwards. This way, the FOMC signals a belief in the economy's ability to achieve a 'soft landing', creating a favorable scenario for risk assets, including Bitcoin. The Federal Reserve's revision of its 2024 growth forecast aligns with current consensus views, but it has also increased its projections for 2025 and 2026 to 2%, showing even more optimism than many economists. Moreover, with unemployment forecasts remaining stable, the Fed does not foresee a significant rise from the current 3.9%. Fed Chair Powell presented a relatively dovish perspective during his press conference. He suggested that the recent inflation data's potential seasonal influences do not alter the overall narrative of cooling price increases and the possibility of reduced interest rates. Powell also indicated that the pace of Quantitative Tightening (QT) might soon decelerate. Bitcoin capital inflows continue, but Grayscale a point of contention Data from digital asset manager CoinShares showed earlier this week that Bitcoin-linked investment products saw total inflows of $2.86 billion in the past week, as its recently-approved ETFs continued to garner investor interest. But the Grayscale Bitcoin Trust (BTC) (NYSE: GBTC) saw sustained outflows, of a whopping $1.25 billion over the past week. This saw the fund manager’s assets under management sink by about $2 billion in the past week, adding to the selling pressure on Bitcoin. Still, Bitcoin remained up around 50% so far in 2024, having seen massive buying after the Securities and Exchange Commission approved spot ETFs in U.S. markets. Anticipation of the token’s halving event, which halves the rate at which new Bitcoin is generated every four years, is also expected to support the cryptocurrency. The halving event is due to take place in April. Analysts said that the current weakness in Bitcoin presented a buying opportunity for the token ahead of its halving. https://www.investing.com/news/cryptocurrency-news/bitcoin-price-today-btc-rallies-on-dovish-fed-powell-3345199

2024-03-20 04:47

Copyrighted Image by: Reuters. Investing.com-- Gold prices moved little in Asian trade on Wednesday, steadying from recent volatility as markets looked to the Federal Reserve for more cues on interest rate cuts in 2024. Among industrial metals, copper prices pulled back sharply from recent 11-month peaks, amid a mix of profit-taking and as strength in the dollar weighed on broader metal markets. Bullion prices remained well below record highs hit earlier in March. But they also appeared to have found support around the $2,150 an ounce level. Spot gold hovered around $2,159.19 an ounce, while gold futures expiring in April rose 0.1% to $2,162.15 an ounce by 00:37 ET (04:37 GMT). Fed meeting awaited for more rate cut cues Metal markets were now focused squarely on the conclusion of a Fed meeting later on Wednesday, where the central bank is widely expected to keep interest rates on hold. But any signals on its plans to cut interest rates in 2024 are expected to drive the next leg of movement for gold. In particular focus will be a press conference with Fed Chair Jerome Powell after the meeting. The central bank could potentially sing hawkish and trim its outlook for interest rate cuts this year, especially after inflation read hotter-than-expected for the past two months. Higher for longer rates bode poorly for gold and other precious metals. Expectations of rate cuts in 2024 were a key driver of gold’s recent rally, with any signs pointing to the otherwise heralding near-term weakness in the yellow metal and its peers. Other precious metals also saw some consolidation this week. Platinum futures fell 0.5% to $893.50 an ounce, while silver futures steadied at $25.148 an ounce. Copper prices nurse steep drop from 11-mth highs Three-month copper futures on the London Metal Exchange steadied below the closely watched $9,000 a ton level, while one-month U.S. copper futures rose 0.3% to $4.0793 a pound. Both instruments fell sharply from 11-month highs this week, as strength in the dollar and anticipation of the Fed spurred heavy profit-taking. An initial boost, from the prospect of tighter Chinese copper output, also appeared to have run out of steam. Focus now turns to a string of key purchasing managers index readings from major global economies, due in the coming days, for more potential cues on copper demand. https://www.investing.com/news/commodities-news/gold-prices-steady-with-fed-in-focus-copper-retreats-from-11mth-peak-3345193

2024-03-20 04:06

Copyrighted Image by: Reuters Investing.com-- Most Asian currencies moved little on Wednesday amid caution before more signals on interest rate cuts from the Federal Reserve due later in the day, with the dollar sitting at two-week highs. The Japanese yen extended its declines after the Bank of Japan struck a largely dovish chord, despite hiking interest rates for the first time in 17 years. Dollar at 2-week high before Fed signals on rate cuts The dollar index and dollar index futures rose slightly in Asian trade, with focus largely on the conclusion of a Fed meeting later in the day. The central bank is widely expected to keep interest rates unchanged. But any signals on potential rate cuts, specifically from a press conference with Fed Chair Jerome Powell after the meeting, will be awaited. Traders fear a potentially hawkish tilt from the central bank, given that inflation read hotter-than-expected for the past two months. USDJPY at 4-mth high, EURJPY tests 2008 peaks Weakness in the yen saw the USDJPY pair surge nearly 2% since Tuesday to around 151.30- its highest level since mid-November. Losses in the yen came even with Japanese markets closed for a holiday. The yen fared even worse against the euro, with the EURJPY pair surging to its highest level since 2008. Weakness in the yen came chiefly after BOJ Governor Kazuo Ueda said the central bank will maintain accommodative conditions to support the Japanese economy. His comments largely overshadowed the bank move away from negative interest rates and yield curve control. Analysts at Citi said that U.S. interest rates remained the main drivers of the yen, and that the currency only stood to strengthen later in 2024, if U.S. rates began falling. They also cautioned over potential intervention in currency markets by the Japanese government, especially if USDJPY crossed 152. Broader Asian currencies moved little, as anticipation of the Fed deterred any big bets. The Australian dollar rose 0.1%, with the AUDUSD pair recovering from sharp losses in the prior session after the Reserve Bank of Australia kept interest rates steady and struck a somewhat dovish chord. The Chinese yuan was flat, with the USDCNY pair trading just a whisker away from the psychologically important 7.2 level. The People’s Bank of China kept its benchmark loan prime rate unchanged as expected on Wednesday. The South Korean won’s USDKRW pair rose 0.1%, while the Singapore dollar’s USDSGD moved little. The USDINR pair rose above the 83 level. https://www.investing.com/news/forex-news/asia-fx-flat-as-dollar-rises-before-the-fed-yen-plumbs-4mth-lows-3345188

2024-03-20 01:11

Copyrighted Image by: Reuters. Investing.com-- Oil prices retreated from the previous session's highs Wednesday as caution set in ahead of the Fed decision, overshadowing data showing weekly U.S. crude stockpiles fell more than expected. By 13:47 ET (17:47 GMT), the U.S. crude futures traded 1.6% lower at $81.02 a barrel and the Brent Oil Futures contract dropped 0.9% to $85.72 a barrel. U.S. weekly crude supplies in larger-than-expected decline Inventories of U.S. crude fell by 1.95M barrels for the week ended Mar. 8, compared with expectations for a draw of 0.9 million barrels, the Energy Information Administration reported Wednesday. The outsize draws in gasoline inventories continued, falling by 3.3M barrels, compared with expectations for a draw of 1.35M barrels, while supplies of distillate -- the class of fuels that includes diesel and heating oil – unexpectedly rose by 624,000, missing expectations for a decrease of 87,000 barrels. Caution ahead of Fed decision The crude market has slipped lower Wednesday, weighed by a stronger dollar as investors braced for the U.S. Federal Reserve's interest rate policy announcement later in the day. While the Fed is widely expected to maintain interest rates at elevated levels, hotter-than-expected U.S. inflation data over the last couple of weeks have raised concerns that central officials could take a more hawkish stance regarding future rate cuts. This has boosted the U.S. dollar, which traded close to two-week highs earlier Wednesday, making crude more expensive for buyers using other currencies. Tight global supplies That said, both contracts remained close to their highest levels since November, having rallied sharply in recent sessions amid growing signs of tighter global supplies, especially after Ukrainian strikes on key Russian fuel refineries shut down production capacity. Additionally, some members of the Organization of Petroleum Exporting Countries signaled they will reduce production in the coming months, with the cartel also maintaining its current pace of supply cuts until June. "Supply risks surrounding Russian refined products continue to provide support at a time when the market is set to tighten following the rollover of additional voluntary cuts from OPEC+ into 2Q24," analysts at ING said, in a note. "This expected tightening is reflected in the forward curve which is trading in deeper backwardation." On the demand front, U.S. crude demand is expected to increase as major refineries resume production after an extended break. Chinese fuel demand was also seen improving during the Lunar New Year holiday, although the pace of growth in China’s oil imports slowed. https://www.investing.com/news/commodities-news/oil-prices-steady-at-4-mth-highs-us-inventories-seen-shrinking-3345133

2024-03-20 00:46

Investing.com-- The Japanese yen weakened substantially against its peers on Tuesday and Wednesday, as an interest rate hike by the Bank of Japan was largely overshadowed by the central bank reiterating its dovish outlook for the near-term. The BOJ hiked rates by 0.1% on Tuesday- its first such move in 17 years, while also ending its negative interest rate policy (NIRP) and yield curve control (YCC) mechanism. But Governor Kazuo Ueda said the BOJ will keep buying Japanese government bonds at a steady pace, and that the bank needed to remain dovish in the near-term to help support the Japanese economy. USDJPY at 4-mth high, EURJPY hits 2008 levels The yen weakened sharply after Ueda’s comments, with the USDJPY pair surging to its highest level since mid-November, at over 151 to the dollar. The Japanese currency fared even worse against the euro, with the EURJPY pair surging to levels last seen during the 2008 global financial crisis. EURJPY trended around 164.31. Losses in the yen were also exacerbated by anticipation of a Federal Reserve meeting this week, with traders pivoting into the dollar on fears that the central bank will strike a more hawkish chord than expected. Analysts said that the Fed and U.S. interest rates remained the biggest drivers of the yen. Yen now easier to sell, watch for intervention- Citi Citi analysts said that while the BOJ’s moves on Tuesday marked a historic decision and presented some upside for the yen eventually, the currency was now more vulnerable to near-term weakness. “While the BoJ will likely suggest the possibility of additional rate hikes, for the FX market it may look as if the BoJ has run short of bullets to counter JPY depreciation,” Citi analysts wrote in a note. Citi analysts said that USDJPY was likely to rise as far as 152. But increases beyond that point presented the possibility of currency market intervention by the Japanese government. Fed, interest rate cuts remain the key drivers of USDJPY In the long-term, Citi analysts said that the path of U.S. interest rates remained the key driver of USDJPY, and that any weakness in the dollar, stemming from interest rate cuts by the Fed, will help the yen. They said they maintained their forecasts of USDJPY falling to 140 or below by the end of 2024. Analysts at Macquarie also said that U.S. interest rate differentials were the biggest drivers of USDJPY, and that they expected the currency pair to decline in the second half of 2024- “but contingent on the Fed beginning its easing cycle.” Macquarie analysts expect weakness USDJPY to be staggered if the Fed’s pace of rate cuts is slow. https://www.investing.com/news/forex-news/japanese-yen-in-freefall-after-boj-talks-dovish-expect-more-weakness-3345115

2024-03-19 16:19

Copyrighted Image by: Reuters The crypto community remains abuzz with discussions of an upcoming halving event, despite the recent downturn in the market. While consensus suggests that halving has not fully priced in, the current retracement in Bitcoin price is viewed by some as the last chance to buy the dip before altcoin markets take off. At the time of writing, Bitcoin price is trading at $64,354, marking a 4.6% decrease over the past 24 hours. Despite this short-term volatility, Bitcoin has shot higher by more than 50% year-to-date. Analysts attribute Bitcoin's dip from its all-time high above $73,000 to around $63,000 as a fleeting opportunity for investors to acquire the cryptocurrency at a more favorable price. Bitcoin halving dominates discussions The Bitcoin network is set for its next halving event, expected to occur every 210,000 blocks, or roughly every four years. Historically, traders closely watch the event due to its direct influence on Bitcoin (BTC) and its market dynamics. This event will reduce the mining reward from 6.25 BTC to 3.125 BTC per block, although miners will continue to receive transaction fees for their efforts. Initially, miners received 50 Bitcoin as a reward for each block added to the blockchain at Bitcoin's inception. However, during the first halving, this reward was reduced to 25 Bitcoin, with subsequent halvings in 2016 and 2020 further decreasing the reward to 12.5 and 6.25 BTC, respectively. This reduction in supply directly impacts Bitcoin's market supply and, consequently, its price dynamics within the broader cryptocurrency market. Current Bitcoin price offers a ‘dip buying’ opportunity According to analysts at Bernstein, Bitcoin's recent $10,000 retreat from all-time highs of over $73,000 to around $63,000 presents a buying opportunity. “We believe the current phase of Bitcoin consolidation is temporary and offers a dip buying opportunity prior to Bitcoin halving,” Bernstein analysts said. In a note to clients, Bernstein described the current phase of consolidation in Bitcoin as temporary, which offers a chance for traders to reposition their risk before the halving event. The analysts maintain a bullish outlook on Bitcoin and the entire crypto ecosystem, viewing the next 18 months as an opportunity for growth. Bernstein previously argued that public miner stocks are the best equity proxy to Bitcoin's price trajectory, especially as it heads towards their 2024-2025 cycle target. They also predicted a threefold surge in the overall crypto market cap to $7.5 trillion by the end of 2025. Bitcoin ETF flows remain volatile The influence of U.S. spot Bitcoin ETFs, such as Grayscale’s GBTC, remains a pivotal factor in the market dynamics. GBTC experienced record daily outflows of $642.5 million, culminating in a net outflow of $154.4 million for the first time since March 1. Despite the current price adjustments, analysts maintain a positive long-term outlook for Bitcoin, predicting a cycle high of $150,000 by 2025. This optimistic projection reflects the belief that the recent price corrections are a natural part of the market's ebb and flow, offering strategic buying opportunities for those looking towards the future. Overall, Bitcoin is in a phase of retracement, shedding some of its recent gains. This situation is perceived by some investors as a chance to build or expand their Bitcoin bets. https://www.investing.com/news/cryptocurrency-news/bitcoin-price-is-this-the-last-dip-buying-opportunity-3344474