2024-03-21 14:17

Copyrighted Image by: Reuters Investing.com - Gold prices climbed to a record high Thursday, but BofA Securities thinks more is still to come. AT 10:05 ET (14:05 GMT), spot gold traded at $2,187.48 an ounce, having earlier climbed to a record high of $2,222.14, while gold futures expiring in April stood at $2,189.25 an ounce, just off a record high of $2,224.80. These gains occurred after the Federal Reserve signaled that it was still considering rate cuts this year, hurting the U.S. dollar, a scenario that would boost gold, especially after rising interest rates dented the yellow metal over the past two years. BofA Securities still sees owning gold as one of its top trades for 2024. Firstly, gold will act as a great hedge for stocks, the bank said, in a note dated March 20, with the metal having the lowest correlation to the S&P 500 of almost any asset class. It can thus act as a haven if inflation reaccelerates or growth slows later this year. Secondly, central banks are buying at an unprecedented pace, purchasing more than 2,100 tons in the past two years, thus creating strong demand. Finally, this is the third major gold rally in two decades, and the first two (2004-2011; 2015-2020) saw big inflows to gold ETFs. Households have tended to miss this rally, however, with total ETF gold holdings, a proxy for investor demand, having fallen by 25%. If investors enter the market, this could help push the gold price to the bank’s potential long-term upside around $2500-$2600 an ounce. https://www.investing.com/news/commodities-news/gold-still-has-upside-despite-new-record-high--bofa-securities-3348201

2024-03-21 14:14

Copyrighted Image by: Reuters EDF (EPA:EDF) Group's tech arm Exaion has become a validator node for Chiliz Chain, the blockchain network known for improving fan engagement in sports, according to a joint announcement made on Wednesday. This move is seen as a blend of sustainable energy practices with innovative blockchain technology. Exaion's role will involve overseeing and ensuring the integrity of transactions on the Chiliz Chain, contributing to the network's security and reliability. According to the press release, this partnership reflects both entities' commitment to using blockchain technology responsibly and sustainably. Chiliz Chain is prominent for its blockchain applications in the sports industry, enabling fans to purchase tokens and NFTs related to their favorite sports teams and brands. The inclusion of Exaion as a validator is part of Chiliz's broader strategy to expand its blockchain's utility and engage more actively with the sports and entertainment sectors. This collaboration comes on the heels of Chiliz announcing new validators, including major sports entities PSG and K-League, as well as introducing updates to its tokenomics and incentives for the Chiliz community. Fatih Balyeli, CEO and co-founder of Exaion, comments: "Exploring the sports and entertainment sectors opens new avenues for us, making our collaboration with Chiliz Chain as a validator node a pivotal strategy that resonates with our goal of shaping the future of digital engagement. Our commitment to energy efficiency and reducing environmental impact enriches Chiliz's mission to transform how fans interact with their passions." Chiliz CEO Alexandre Dreyfus hailed Exaion's addition as a validator, noting the importance of aligning with partners who prioritize eco-friendly practices in the blockchain sector. "Having Exaion, a subsidiary of EDF, as a validator node on our chain is a testament to our commitment to sustainability and innovation. Their renowned expertise in the energy sector and proactive approach to eco-responsibility will significantly bolster our efforts in this space," he added. Validator nodes like Exaion are critical to the blockchain's operation, ensuring that transactions are processed efficiently and securely. This expansion is a necessity for the Chiliz Chain as it continues to attract a global audience of sports fans and tech enthusiasts. https://www.investing.com/news/cryptocurrency-news/edfs-exaion-strengthens-chiliz-blockchain-as-new-validator-3348196

2024-03-21 13:57

Copyrighted Image by: Reuters BlackRock, the world's largest asset manager, today launched its first tokenized investment fund, the BlackRock USD Institutional Digital Liquidity Fund (BUIDL). Per its official statement, the move signals a major shift towards the integration of blockchain technology into traditional finance. The fund, built on the Ethereum network, aims to provide qualified investors with U.S. dollar yields accessible through Securitize Markets, LLC. Robert Mitchnick, BlackRock’s Head of Digital Assets, said the fund focuses on solving client issues in the digital space. “This is the latest progression of our digital assets strategy. We are focused on developing solutions in the digital assets space that help solve real problems for our clients, and we are excited to work with Securitize,” he added. BUIDL offers a stable token value pegged at $1, distributing dividends directly to investors’ wallets monthly. It focuses on investments in cash, U.S. Treasury bills, and repurchase agreements, ensuring yields for token holders on the blockchain. The fund introduces 24/7 token transfers among pre-approved investors, along with flexible custody options. Prominent crypto infrastructure providers like Anchorage Digital Bank NA, BitGo, Coinbase (NASDAQ:COIN), and Fireblocks are among the first participants supporting BUIDL. BlackRock has chosen Bank of New York Mellon for asset custody and fund management, while Securitize will manage tokenization and fund operations. Additionally, BlackRock has invested in crypto infrastructure specialist Securitize, appointing Joseph Chalom, Global Head of Strategic Ecosystem Partnerships at BlackRock, to Securitize's Board of Directors. The fund’s token shares will be issued under specific U.S. securities regulations, with an initial investment threshold of $5 million. PricewaterhouseCoopers LLP will audit the fund operations to ensure compliance with relevant regulations. “Tokenization of securities could fundamentally transform capital markets. Today’s news demonstrates that traditional financial products are being made more accessible through digitization. Securitize is proud to be BlackRock’s transfer agent, tokenization platform and placement agent of choice in digitizing and expanding access to its investment products,” said Securitize co-founder and CEO Carlos Domingo. Earlier this month, the U.S. Securities and Exchange Commission (SEC) postponed its decision on a proposal from BlackRock for a spot ethereum exchange-traded fund (ETF). This delay marked another hiccup for the asset manager as it aims to launch the iShares Ethereum Trust, which is set to be listed on the Nasdaq should it receive approval. https://www.investing.com/news/cryptocurrency-news/blackrock-deepens-crypto-push-debuts-first-tokenized-fund-on-ethereum-3348162

2024-03-21 13:08

An analysis from Goldman Sachs highlighted a volatile week in the cryptocurrency market, particularly focusing on Bitcoin (BTC) and Ethereum (ETH). The report notes a 10.4% drop in total market capitalization, amounting to a $280 billion loss. The downturn began on a Sunday, with BTC and ETH experiencing three days of declines before recovering during the US trading session, and further strengthening in Asia. A key observation from Goldman Sachs is the healthy retracement in the cryptocurrency market. This was partly expected due to the rapid ascent to mid-March all-time highs and elevated perpetual futures funding rates, which have since normalized. Bitcoin and Ethereum open interest (OI)-weighted funding rates decreased from early March peaks to more sustainable levels, signaling a cooling off from previously overheated market conditions. “Zooming out, the sudden retracement and follow-up recovery did not come as a surprise, especially if one considers the speed at which we reached the mid March ATH and the elevated perpetual futures funding rates that accompanied it, as investors looked to put on leveraged longs on crypto retail exchanges,” the report reads. “Since then, the funding rates have settled into healthier levels. BTC OI-weighted funding rate peaked on 5 March at ~107% annualized and has since retreated to ~15% annualized. ETH OI-weighted funding rate peaked on 5 March at ~104% annualized and has similarly pulled back to current ~19% annualized,” it further details. Investment activities also reflected market sentiment, with Bitcoin ETFs experiencing net outflows over three consecutive days, notably from continued outflows in Grayscale Bitcoin Trust (BTC) (NYSE:GBTC). However, aside from GBTC, other BTC ETF holdings remained relatively stable, with modest inflows despite the market downturn. An analysis of BTC holders indicated early signs of profit-taking, as suggested by on-chain activity. There's been a slight decrease in the percentage of BTC supply held for at least one year, indicating increased market activity among medium to longer-term holders. Moreover, there's been an uptick in transactional activity, especially within the 7-30 day band, suggesting a higher frequency of BTC changing hands monthly. Ethereum's performance relative to Bitcoin was also underlined in the research note, with the ETH/BTC ratio dropping. The future of spot ETH ETFs remains uncertain, with regulatory decisions on proposals by Fidelity and Grayscale being delayed. The report mentions a confidential inquiry received by the Ethereum Foundation from an unspecified state authority, adding to the regulatory uncertainties surrounding the world’s second largest cryptocurrency. https://www.investing.com/news/cryptocurrency-news/goldman-sachs-says-crypto-undergoing-a-healthy-retracement-3348053

2024-03-21 10:21

Investing.com - The U.S. dollar rose marginally in European trade Thursday, rebounding after the previous session’s sharp losses after the Federal Reserve maintained its projections for interest rate cuts this year, while the Swiss franc slumped after a surprise cut by the Swiss National Bank. At 04:20 ET (09:20 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded marginally higher at 103.065, after having fallen more than 0.5% on Wednesday. Fed sticks with three rate cuts this year The Fed kept interest rates unchanged on Wednesday, as widely expected, but also stayed on track for three rate cuts this year, even though it projected slightly slower progress on inflation. Sticky inflation readings had prompted fears that the Fed officials would rein in projections for rate cuts this year, but the central bank didn’t strike a more hawkish tone, which sent the greenback tumbling. Traders were now pricing in an over 70% chance the Fed will cut rates by 25 bps in June, according to the CME Fedwatch tool. The Fed is unlikely to delay rate cuts for an extended period and are planning the first reduction at the June meeting, according to Goldman Sachs analysts, in a note. “We continue to expect cuts in June, September, and December, for a total of 3 cuts in 2024,” they added. Swiss franc slumps after rate cut In Europe, USD/CHF rose 0.9% to 0.8945 after the Swiss National Bank surprised the market, cutting its benchmark interest rate by 25 basis points to 1.5%, becoming the first major central bank to cut interest rates in this cycle. The step comes after Swiss inflation dipped to 1.2% in February, the ninth month in succession that price rises have been within the SNB's 0-2% target range, and is likely aimed at curtailing the recent appreciation of the Swiss franc. SNB chief Thomas Jordan suggested, at Davos, that the franc's recent appreciation was posing challenges for exporters, and this move is likely designed to weaken the currency. USD/NOK fell 0.1% to 10.5484 after Norway's central bank kept its benchmark interest rate unchanged at 4.50% on Thursday, as unanimously expected by analysts. GBP/USD fell 0.1% to 1.2776 ahead of the Bank of England’s policy-setting meeting later in the session. The BOE is widely expected to keep interest rates unchanged, but U.K. inflation slowed in February – dropping to 3.4% in annual terms after a 4.0% increase in January, the weakest rate of inflation since September 2021 – suggesting the central bank could start cutting interest rates in the months ahead. EUR/USD traded 0.1% higher to 1.0920, after notching a one-week high against the dollar earlier in the session. The European Central Bank has tried to dampen speculation on a streak of interest rate cuts, with President Christine Lagarde saying on Wednesday that the ECB could not commit to a certain number of rate cuts even after it starts reducing borrowing costs. Yen bounces from a four-month low USD/JPY traded 0.2% lower to 150.99, falling from a four-month high with the prospect of U.S. interest rate cuts and a more hawkish Bank of Japan boding well for the yen, which was battered by rising U.S. interest rates over the past year. Purchasing managers index data for March showed some resilience in the Japanese economy, with manufacturing activity shrinking less than expected, while the services sector grew further. AUD/USD rose 0.4% to 0.6613, with the gains fueled chiefly by a substantially stronger-than-expected reading on the labor market, which also showed unemployment falling to a six-month low. https://www.investing.com/news/forex-news/dollar-steadies-after-sharp-losses-swiss-franc-slumps-on-rate-cut-3347531

2024-03-21 05:42

Copyrighted Image by: Reuters Investing.com-- Bitcoin price weakened in Asian trade on Friday as strength in the dollar, which rebounded sharply to three-week highs, and the continuing large outflows from the Grayscale Bitcoin Trust (GBTC), pushed the world’s largest cryptocurrency below $64,000. Bitcoin traded down 3.13% at $63,443.6 by 17:01 ET (21:01 GMT). The token saw a heavy dose of consolidation from record highs over the past seven days but still remained steady above weekly lows. Strength in the dollar was the biggest source of pressure on crypto markets, as an unexpected interest rate cut from the Swiss National Bank and dovish signals from the Bank of England saw traders stick firmly to the greenback as among the few high-yielding, low-risk currencies. The dollar index surged to a three-week high of over 104 points. In addition, US-listed spot Bitcoin ETFs, which have been the primary driver of the latest BTC rally, saw their fourth straight day of net negative flows. Interestingly, nearly all of the funds are seeing positive flows but it was not enough to offset the substantial outflows from GBTC, which experienced a $359 million withdrawal on Thursday, contributing to a total $94 million outflow across all funds in the group. Bitcoin price heads for weekly loss amid dollar strength, profit-taking The world’s largest cryptocurrency was now trading down about 5% from last Friday’s levels amid pressure from the dollar and sustained profit-taking. The token had surged to record highs above $73,000 last week, as it benefited from strong capital flows into the recently-approved spot exchange-traded funds in U.S. markets. These funds were a key point of support for Bitcoin so far in 2024, with the token trading up around 50% for the year. Bitcoin also remained well above lows hit during the week, when anticipation of a Federal Reserve meeting drove the token as low as $60,000. But the near-term outlook for the token was clouded by a strong dollar, as signs of resilience in the U.S. economy, in comparison to its peers in the developed world, made the greenback appear especially attractive. The Fed may also lag most of its central bank peers in cutting interest rates. Still, with the Fed maintaining its outlook for at least three interest rate cuts in 2024, the dollar is expected to eventually decline. Markets are still positioned for a 25 basis point cut in June, according to the CME Fedwatch tool. Such a scenario bodes well for Bitcoin, given that the token’s highly speculative nature helps it thrive in a low-rate environment. A halving event, which is expected to slash the generation of new Bitcoin by 50%, is also expected to push up prices in 2024. The halving is expected to occur by April. "ETF activity may begin to slightly fade away and make room for the highly-anticipated halving. With the way ETF activity impacts Bitcoin now, it is this rewards-halving event that will determine Bitcoin’s next course of price action," Elitsa Taskova, Chief Product Officer at Nexo, told Investing.com. Mike Novogratz on why Bitcoin is likely to remain on an uptrend During the Bitcoin Investor Day in New York on Friday, Mike Novogratz, the CEO of Galaxy Digital, forecasted a bullish future for Bitcoin due to concerns over US fiscal practices. Highlighting the national debt exceeding $34 trillion and government expenditure reaching 25% of GDP, he argued that Bitcoin serves as a reliable safeguard against the risks of inflation and the devaluation of currency, amidst growing government borrowing and spending. "What's the macro story for bitcoin?" said Novogratz. "It's relatively simple. Our government can't keep its pants on and stop spending money. That went from a problem in the early 2000s to a crisis with Donald Trump and Joe Biden. They go down as the two presidents who destroyed our fiscal stability." Novogratz's stance resonates with investors using Bitcoin to hedge against fiscal unpredictability. He traced the rise in government spending through the Trump and Biden eras, highlighting the entrenched nature of structural deficits. "Until you see a government, both Dems and Republicans, that says 'enough,' bitcoin's going to keep going higher," Novogratz said. https://www.investing.com/news/cryptocurrency-news/bitcoin-price-rebounds-to-66k-on-rate-cut-hopes-is-another-rally-on-tap-3347245