Short-term holders of Bitcoin are currently experiencing unrealized losses, with 88.3% of their supply underwater, leading to increased selling pressure in the market and potential liquidation by these holders.
The market anticipates a 100 basis point interest rate cut by the Federal Reserve in 2024, with US 10-year yields falling and Fed funds futures indicating a lower path ahead of the Jackson Hole symposium, as US services PMI disappoints and US retailer Foot Locker warns on the consumer.
The US Inflation Reduction Act (IRA) has led to increased investments in critical mineral projects and hydrogen producers, but its long-term impact depends on mine permitting rule changes and tax credit guidance; the US Treasury plans to issue $1.859 trillion of debt in the second half of 2023, weighing on bond prices; and new guidance from the Federal Deposit Insurance Corp. has resulted in revisions to uninsured deposit totals for several banks.
Bitcoin has fallen below $26,000 as investors react to concerns about inflation and the possibility of higher interest rates, while other cryptocurrencies experience modest losses.
Concerns of a stock market crash are growing as economists await the release of the second-quarter GDP report, which could provide insight into the impact of the Federal Reserve's rate-hike campaign and future monetary policy changes. The report may have a significant effect on equity markets, which have been sensitive to economic data releases this year.
The Federal Reserve is losing its power to influence the US economy, according to Wall Street economist Richard Koo, potentially requiring higher interest rates to drive inflation down and leading to a selloff in stocks and bonds.
The U.S. dollar rebounded from previous losses as investors awaited labor market data for clues on the Federal Reserve's policy path.
The Bank of England's losses on bonds purchased to support the UK economy post-financial crisis are expected to be significantly higher than projected, reaching around £48.7 billion for the current fiscal year, due to rising interest rates and falling bond values.
The Pakistani stock market experienced significant losses in response to rumors of an interest rate hike, economic uncertainty, and the depreciation of the rupee.
China's property developer, Country Garden, recorded a record loss of $6.7 billion in the first half of 2023 and warned of a potential default risk.
Bitcoin's price dropped below $26,000 as the approval of a Bitcoin ETF was further delayed by the SEC, reversing the bullish gains from the Grayscale court decision earlier in the week. The crypto market also experienced a decline, with Ethereum's price going down by 3.5% and the overall market cap losing $11.2 billion. However, Maker and Toncoin managed to resist the bearish trend with positive gains. The global macroeconomic landscape also added to the uncertainty, as key economic data raised doubts about a potential interest rate hike.
Bitcoin and major tokens have experienced losses as the U.S. Securities and Exchange Commission (SEC) delays key ETF decisions, dampening hopes of a long-term recovery.
Bitcoin (BTC) continues to experience losses as the "Grayscale hype" disappears and selling pressure remains strong, with predictions of further downside to around $23,000 and a potential relief rally topping out at $27,200, while U.S. dollar strength adds to the pressure on BTC price.
The 10-year Treasury bond is on course for a third consecutive year of losses, which is unprecedented in 250 years of U.S. history, as the bond's return stands at negative 0.3% so far in 2023 after significant declines in the past two years, due to factors such as rising inflation and interest rate hikes by the Federal Reserve.
Crypto analyst Nicholas Merten warns that the altcoin market could lose $60 billion, with Ethereum failing to break above $2,000, indicating a bearish pattern, and he plans to short Bitcoin as well.
The Federal Reserve has sold about $1 trillion of its bond holdings without causing strains in financial markets, as part of its balance sheet reduction program.
Bitcoin has experienced a significant decline of nearly 20% since Standard Chartered's prediction of reaching $120,000, with the cryptocurrency falling for a second consecutive month amid a broader sell-off in financial markets.
The Federal Reserve's quantitative tightening program, which involves reducing its balance sheet, has not had a significant impact on the market so far, as private sector participants have taken over its role in the Treasury market; however, there is still a risk to banking reserves if money market funds stop buying T-bills.
Emerging market currencies are expected to struggle to recover from their losses this year due to high U.S. Treasury yields, safe-haven demand, and a slowing Chinese economy, keeping the dollar strong, according to a Reuters poll of FX analysts.
Stock futures decline as investors express concerns about the Federal Reserve's potential to maintain a restrictive monetary policy due to rising inflation.
The US banking industry faces significant downside risks from inflation and high interest rates, which could weaken profitability and credit quality, according to FDIC Chair Martin Gruenberg.
Bitcoin showed some signs of stirring from its September stupor, rising around 3% to $26,400 before dropping back below $26,000, while Coinbase plans to expand internationally and MicroStrategy's bitcoin impairment losses may be resolved with changes to accounting standards.
The United States Federal Reserve's financial woes and potential implications for cryptocurrency are discussed on the latest episode of "Macro Markets," highlighting challenges posed by inflation and the consequences of loose monetary policies during the pandemic.
Bitcoin's recent price drop, despite the potential for future exchange-traded funds (ETFs), may indicate a coming liquidity crisis as loose monetary policies reverse, according to Bloomberg Intelligence senior macro strategist Mike McGlone.
The US dollar has experienced a remarkable recovery over the past two months, erasing all of its losses for 2023, as strong economic data suggests the US economy will avoid a recession and makes the greenback an attractive investment compared to other currencies.
The yield on the 10-year Treasury note is predicted to decrease significantly for the remainder of this year and in 2024, as economists anticipate the Federal Reserve to loosen its monetary policy and inflation to fall.
The Wall Street Journal reports a notable shift in the stance of Federal Reserve officials regarding interest rates, with some officials now seeing risks as more balanced due to easing inflation and a less overheated labor market, which could impact the timing of future rate hikes. In other news, consumer credit growth slows in July, China and Japan reduce holdings of U.S. Treasury securities to record lows, and Russia's annual inflation rate reached 5.2% in August 2023.
Bitcoin and the overall digital asset market have seen a significant decline, with Bitcoin dropping to its lowest price in three months at $25,048, attributed to failed crypto exchange FTX seeking approval to liquidate $3.4 billion in various digital assets.
Investors are growing increasingly concerned about the ballooning U.S. federal deficit and its potential impact on the bond market's ability to finance the shortfall at current interest rates, according to Yardeni Research.
Investors are concerned about the downside potential of Bitcoin due to looming FTX liquidations and the Federal Reserve's monetary tightening, leading to a negative correlation between Bitcoin's price and implied volatility.
Bitcoin, Ethereum, and other cryptocurrencies have been experiencing a steady decline in prices due to concerns from the Federal Reserve, leading to warnings of a potential price crash, although some analysts remain hopeful for improvement.
Kyle Bass predicts that the US banking industry will suffer losses of hundreds of billions of dollars due to exposure to the office market, representing a 10% hit to US banking equity, while industrial and multi-family sectors will remain strong.
Over half of investors surveyed by Bloomberg believe that personal consumption in the US will decline in early 2024, as households see their savings depleted due to high borrowing costs.
Popular analyst Arthur Hayes argues that traditional economic theories about Bitcoin's relationship with interest rates will fail due to the US government's substantial debt, as inflation may become "sticky" and bond yields may not keep up with GDP growth, leading bondholders to seek higher yielding "risk assets" like Bitcoin.
US banks are experiencing significant deposit outflows, with total bank deposits plunging by over $70 billion in a week, the lowest levels since May, leading to concerns about the ongoing regional banking crisis; meanwhile, US commercial banks have also suffered significant losses in deposits, with 60% of deposits moving to higher-yielding money market funds, and the balance of unrealized losses on securities at commercial banks rising to $558 billion in Q2; to address these issues, the Federal Reserve has reached an all-time high of $107.8 billion in its banking loan facility to provide funding to distressed banks.
Cryptocurrency prices remained stable as inflation in the U.S. surpassed economists' expectations, with Bitcoin trading at around $26,100 and Ethereum experiencing a slight dip of 0.5%. The Federal Reserve will consider this report, among other factors, for its upcoming interest rate announcement on September 20. While inflation has decreased since June, it still exceeds the Fed's target of 2% annually. Core inflation, excluding volatile food and energy costs, decreased to 4.3% in August compared to July's 4.7%.
Bitcoin and other cryptocurrencies advanced on Friday, but a key technical indicator suggests that losses are likely coming.
Bitcoin (BTC) briefly surpassed $27,000 before experiencing a 2% drop, resulting in liquidations of approximately $100 million in leveraged trading positions, with short traders suffering $60 million in losses and long traders experiencing $40 million in losses.
U.S. equities fell as the Fed began its policy meeting and the 10-year Treasury yield reached a 16-year high, with Walt Disney shares dropping after announcing increased spending on theme parks and cruises, and Cboe Global Markets shares rising following a CEO change.
US stock futures rise as investors await Fed decision on rates; US debt rises to $33 trillion as government shutdown looms; Federal Reserve expected to pause rate hikes; Impact of government shutdown, autoworkers strike, and rising oil prices on the economy; Biden reshapes the Federal Reserve.
China experienced its largest capital outflow since 2015, with $49 billion leaving the country, as economic concerns prompt investors to withdraw; of this, $29 billion was withdrawn from securities investments, including bonds. The outflow was compounded by a record-high $12 billion in mainland-listed stocks being dumped by foreign investors and a $16.8 billion deficit in direct investment, the largest since 2016. The decline in the capital account was exacerbated by the tourism season, with outbound travel negatively impacting the services sector, while inbound travel remained suppressed, causing a continued deficit in the services trade. Efforts by Beijing, such as reducing the foreign currency reserves held by banks, have aimed to support the yuan but have been unable to prevent a significant decline in the offshore yuan. Weak exports and the allure of US yields have also contributed to the yuan's decline, further complicating China's capital flight situation, as doubts about the country's ability to achieve its 5% GDP target for the year grow.
Bitcoin and other cryptocurrencies experienced a decline after the Federal Reserve decided not to raise interest rates, suggesting that significant gains may not be anticipated in the near future.
Markets on Wall Street are expected to open with losses after the Federal Reserve suggests it may not cut interest rates next year by as much as previously thought, leading to a decline in futures for the S&P 500 and Dow Jones Industrial Average; uncertainty surrounding inflationary indicators and high rates is a major concern for traders moving forward.
