2024-03-13 20:15

Copyrighted Image by: Reuters. Coinbase stock target raised as analyst expects robust Bitcoin ETF inflows JMP Securities analysts raised their price target for Coinbase (NASDAQ:COIN) from $200 to $300, citing expectations of strong inflows into spot Bitcoin exchange-traded funds (ETFs). “We estimate $220B of flows into spot-Bitcoin ETFs over next three years, multiples of what has already been experienced; Coinbase remains well positioned if we are correct,” analysts wrote in the note. Analysts maintained a Market Outperform rating on the stock. JMP analysts first voiced their optimistic view on the impact of a potential spot-Bitcoin ETF on the crypto market and Coinbase's role within it in December 2023. Contrary to the prevalent belief that such an ETF would negatively affect exchanges like COIN, they anticipated an opposite effect. Notably, JMP believed this view was misguided and overlooked the crypto exchange’s unique position and evolving business model in the broader crypto ecosystem. Moreover, analysts and their team believe that the current activity and flows into Bitcoin ETFs are likely just “the tip of the iceberg.” “We estimate that after ~$10B in flows to date, two months into launch, flows will actually continue to grow materially from here over the next few years as the ETF approval is just the beginning of a longer process of capital allocation,” analysts wrote, In this light, the broker views Coinbase, and a handful of its peers, as “significant beneficiaries of the additional capital flows” expected to enter the space. With only a few firms possessing the necessary technical expertise and scale to facilitate entry and success for others in the digital asset space, JMP analysts see Coinbase “as currently well-positioned to participate in many areas of growth in an industry we estimate will grow by multiples over the next decade.” https://www.investing.com/news/cryptocurrency-news/coinbase-stock-target-raised-as-analysts-expect-robust-bitcoin-etf-inflows-432SI-3336726

2024-03-13 15:51

Copyrighted Image by: Reuters JMP Securities analysts are out with a compelling prediction about Bitcoin (BitfinexUSD) prices. The investment firm suggests that Bitcoin price could potentially surge to $280,000 within the next three years, driven by the anticipated Bitcoin ETF inflows. This bold forecast has, as expected, garnered interest and ignited some debate as to the impact of ETF inflows on the price of Bitcoin. Bitcoin price soars Bitcoin has experienced a remarkable surge over the last year or so, with its price climbing steadily through 2023 before surging in late January and throughout February 2024. The long-awaited approval of Bitcoin Spot ETFs by the SEC in January helped its price rise. At the time of writing (11:45 am ET Wednesday, March 13, 2024), Bitcoin is trading around the $72,572 mark, up 71.35% for the year-to-date and 199% in the last 12 months. It hit a new all-time high of $73,679 earlier in Wednesday’s session. This significant rise in Bitcoin's value has captured the attention of investors and financial experts once again, sparking discussions about the potential implications for the cryptocurrency market in the coming years. What is Bitcoin ETF A Bitcoin ETF, or Exchange-Traded Fund, is a type of investment fund that tracks the price of Bitcoin and trades on traditional stock exchanges. Essentially, a Bitcoin ETF allows investors to gain exposure to Bitcoin without needing to directly hold the cryptocurrency. Instead, they can buy and sell shares of the ETF through their brokerage accounts, just like they would with any other stock. The creation of Bitcoin ETFs has been a significant development for the cryptocurrency market. It is a new way for traditional investors to participate in Bitcoin's potential gains without the need to own and store the digital asset directly. Additionally, regulatory bodies' approval of Bitcoin ETFs has been seen as a step towards mainstream acceptance. Bitcoin ETF inflows forecast JMP Securities analysts estimate $220 billion flows into spot Bitcoin ETFs over the next three years. This is multiples of what has already been experienced. The firm has been quite bullish on the prospects of a spot Bitcoin ETF and the implications it would have on both the broader crypto market, and while they appreciate that there has already been a step-function in engagement in the industry following the ETF launches, the firm argues that the activity and flows experienced thus far is “likely still the tip of the iceberg.” “We estimate that after ~$10B in flows to date, two months into launch, flows will actually continue to grow materially from here over the next few years as the ETF approval is just the beginning of a longer process of capital allocation,” said JMP. “Our experience is that following the flow of funds is critical to price movements over time, and when barriers to investment are removed, in turn allowing incremental flows into an asset (or asset class), the potential multiplier on price can be tremendous.” As a result, the investment firm estimates $220 billion of incremental flows will come into the ETF over the next three years, which they believe “could also be quite impactful to Bitcoin's price” given the multiplier on capital. “We estimate a current multiplier of ~25x, which on our flow estimate would equate to an incremental $280K per Bitcoin,” declared the firm. https://www.investing.com/news/cryptocurrency-news/bitcoin-price-could-surge-to-280000-in-3-years-on-etf-inflows--jmp-3336474

2024-03-13 06:21

Copyrighted Image by: Reuters. Investing.com -- Oil prices settled sharply higher Wednesday, as an unexpected draw in U.S. inventories pointed to rising demand just as Russia refineries faced disruptions following Ukraine attacks. At 14:30 ET (18.30 GMT), the West Texas Intermediate crude futures rose 2.8% to $79.72 a barrel, while the Brent oil futures expiring in May rose 2.6% to $84.03 a barrel. US inventories in surprise decline; Russia supply disruptions Inventories of U.S. crude fell by roughly 1.5M barrels in the week ended Mar. 8, confounding expectations for a build of 900,000 barrels. Refinery activity continued to improve, and were operating at 86.8% of their capacity, up from the 84.9% pace seen in the prior week. Gasoline inventories, one of the products that crude is refined into, fell by about 5.7M barrels against expectations of a draw of1.9M barrels while distillate stockpiles unexpectedly rose by 888,000 barrels, compared to expectations of a fall of 150,000 barrels. In further dent to global supplies, Ukrainian drones continued to hit oil refineries in Russia for the second-straight day. IEA report in focus A monthly report from the International Energy Administration due Thursday will be closely watched for clues about the supply and demand outlook. The IEA's report follows OPEC's report released on Tuesday. In its monthly report, the Organization of Petroleum Exporting Countries maintained its forecast that world oil demand will increase by 2.25 million barrels per day in 2024, and by 1.85 million bpd in 2025. https://www.investing.com/news/commodities-news/oil-prices-rise-on-signs-of-big-us-inventory-draw-opec-demand-outlook-3335192

2024-03-13 06:08

Copyrighted Image by: Reuters. Investing.com-- The U.S. dollar steadied on Wednesday, retaining a bulk of its overnight gains after strong consumer inflation data furthered bets on higher-for-longer rates, while the British pound tread water before key GDP data. Strength in the dollar kept most other G7 currencies trading largely rangebound, with the euro, Australian dollar and Canadian dollar moving less than 0.1% in either direction. But the Japanese yen saw some strength amid continued focus on a policy shift by the Bank of Japan. GBP rangebound with data barrage in focus The British pound steadied on Wednesday at about 1.2792 against the dollar, in anticipation of several key economic readings. Gross domestic product data, industrial production and trade data for January are all due later in the session, and are expected to offer more cues on the British economy, as it grapples with sluggish growth. The GDP data in particular will be in close focus, after the economy shrank slightly less than expected in December. Analysts expect a month-on-month expansion on 0.2% in January. In the Euro zone, wholesale price index inflation from Germany is on tap. The euro moved little, but remained within sight of two-month highs. Dollar steady as CPI beats expectations, more econ. cues on tap The dollar index and dollar index futures fell slightly, but retained a bulk of their overnight gains after a stronger-than-expected reading on consumer price index inflation. The reading showed that inflation remained stickier than expected, feeding into concerns that the Federal Reserve will have little impetus to begin trimming interest rates. Still, markets maintained their bets that the Fed will have enough cause to begin cutting rates by June, with a 25 basis point reduction still on the cards, according to the CME Fedwatch tool. But the hotter CPI reading potentially sets the stage for a stronger reading on producer price index inflation due later this week. U.S. retail sales data for February is also due on Thursday. Japanese yen firms amid BOJ rate hike watch The Japanese yen rose 0.3% on Wednesday, as signs of incoming wage hikes in Japan drummed up expectations for an imminent interest rate hike from the Bank of Japan. Media reports showed Toyota Motor Corp (NYSE:TM) (TYO:7203), one of Japan’s biggest employers, had agreed to steep wage hikes with a labor union. Other employers also appeared to have followed suit. Increased wages, coupled with recent, sticky inflation indicators, give the BOJ more impetus to end its negative interest rates and yield curve control policy. Reuters reported that the BOJ was gearing up to signal how it will conduct bond purchases after ending its ultra-dovish policies. The BOJ is set to meet next week, and is pipped to either raise interest rates then or during a late-April meeting. Higher rates bode well for the yen, which was battered by rising U.S. rates over the past two years. https://www.investing.com/news/forex-news/asia-fx-dips-dollar-steady-after-hotterthanexpected-cpi-print-3335223

2024-03-13 04:37

Copyrighted Image by: Reuters Investing.com-- Gold prices steadied in Asian trade on Wednesday, but were nursing a tumble from record highs after a strong U.S. inflation reading kept fears of higher-for-longer interest rates in play. The yellow metal was also hit with a degree of profit-taking after surging as high as $2,200 earlier this week. While gold’s initial bounce was triggered by bets on early interest rate cuts by the Federal Reserve, Tuesday’s consumer price index data swiftly cooled those bets. Spot gold steadied at $2,159.32 an ounce, while gold futures expiring in April fell 0.1% to $2,164.45 an ounce by 00:13 (04:13 GMT). Both instruments were down about 2% each from record highs hit earlier this week. Spot gold hit a record high of $2,195.20 an ounce, while gold futures hit a peak of $2,203.0 an ounce on Monday. CPI data puts rate cuts in focus, more economic cues awaited CPI data showed U.S. inflation grew slightly more than expected in February, remaining well above the Fed’s 2% annual target. The reading presents the Fed with less impetus to begin trimming interest rates early, although traders still maintained bets on a 70% chance for a 25 basis point cut in June, according to the CME Fedwatch tool. The CPI data now puts upcoming producer price index and retail sales readings squarely in focus for more cuts on the U.S. economy. Any more signs of resilience in the economy give the Fed more headroom to keep interest rates higher for longer. Such a scenario bodes poorly for gold, with strength in the U.S. economy also likely to sap the yellow metal of safe haven demand. But the yellow metal was still sitting on strong gains so far in 2024. Gold and other precious metals were also pressured by overnight strength in the dollar and U.S. Treasury yields. Platinum futures steadied around $927.90 an ounce, while silver futures fell 0.4% to $24.297 an ounce. Copper prices muted, China cheer cools Among industrial metals, copper futures expiring in May fell 0.2% to 3.9283 a pound. The red metal saw some strength in recent sessions on hopes that top importer China will roll out more stimulus measures to support an economic recovery this year. But the economic outlook for China remained dour, especially after Beijing set a largely underwhelming GDP target for 2024, at 5%- the same as 2023. https://www.investing.com/news/commodities-news/gold-prices-fall-from-record-highs-near-2150-after-hot-cpi-data-3335242

2024-03-13 01:48

Copyrighted Image by: Reuters. Investing.com-- Shares of major Australian gold mining stocks fell on Wednesday, tracking a fall in the prices of the yellow metal, which retreated from record highs tracking hot U.S. inflation data. Northern Star Resources Ltd (ASX:NST), the biggest listed gold miner in the country, fell 1.4%, while Sydney shares (ASX:NEM) of U.S. gold miner Newmont Goldcorp Corp (NYSE:NEM) shed 2.6%. Evolution Mining Ltd (ASX:EVN) lost 2.1%, while Genesis Minerals Ltd (ASX:GMD) fell 2.4%. Gold miners lagged the broader Australian stock market, with the ASX 200 rising 0.3%. Losses in gold miners came as prices of the yellow metal retreated sharply from record highs this week. Spot gold slid about 2% from a record high of $2,195.20 an ounce, while gold futures fell over 2% from a record high of $2,203.0 an ounce. Gold prices were hit chiefly by fears of higher-for-longer U.S. interest rates, after consumer price index inflation read higher than expected for February. The dollar and Treasury yields rose after Tuesday’s data, pressuring bullion prices. Higher rates present a higher opportunity cost for buying into bullion, which diminishes the yellow metal’s appeal. Weaker gold prices in turn present smaller margins for gold miners, who usually operate on very tight margins, given the high capital cost in mining gold. Still, gold mining stocks were sitting on strong gains over the past two weeks, tracking a melt-up in bullion prices. While the Federal Reserve may delay interest rate cuts in the near-term, it is still expected to eventually bring down rates in 2024. https://www.investing.com/news/commodities-news/australian-gold-miners-fall-as-cpi-data-pulls-bullion-from-record-highs-3335204