Bitcoin backs off record highs on profit-taking
Bitcoin dropped on Friday for the first session in four days away from recent record highs on profit-taking.
Despite the loss, bitcoin is still heading towards the seventh weekly profit in a row amid strong purchases by global corporations.
The Price
Bitcoin fell 3.9% at Bitstamp to $107,367, with a session-high at $111,816.
On Thursday, bitcoin rose 1.9% at Bitstamp, hitting a record high at $112,000.
Crypto Market Value
The market value of cryptocurrencies fell by over $50 billion today to a total of $3.575 trillion.
Weekly Trades
Bitcoin is up over 2% so far this week on track for the seventh weekly profit in a row.
Bitcoin as a Safe Haven
Bitcoin is emerging as a haven for investors looking for alternatives to traditional US assets, which are facing severe fluctuations currently.
Concerns about the massive US fiscal deficit and lower demand on US treasury notes are bolstering shifts towards crypto assets such as bitcoin.
The markets are already on edge after Moody’s decision to cut the US credit rating by one notch.
Crypto trading platform Nexo’s co-founder Anthony Trenchef hailed a new period of optimism for bitcoin as it passed its January highs and rose over 50% from April lows.
He believes that bitcoin is entering its best historical years yet, with the $150,000 remaining a viable goal in 2025.
MicroStrategy
Through the X platform, MicroStrategy’s Chairman and co-founder Micheal Saylor announced a new round of bitcoin purchases amounting to 7390 units, raising total holdings to a new record high.
The purchase occurred between May 12 and May 18, with the company spending $764.85 million in total, averaging $103,498 per unit.
Following the acquisition, the company now holds 576,230 units, averaging $69,783 per unit with a total value of $40.21 billion.
MetaPlanet
Japan’s MetaPlanet also expanded its bitcoin holdings by 1004 units, purchased between May 12 and 18, at a value of $104.29 million, averaging $103,873 per unit.
Following the new purchase, the company’s total holdings rose to a record 7800 units at a value of $712.46 million, averaging $91,341 per unit.
US dollar falls to three-week trough under selling pressures
The US dollar fell on Friday in European trade against a basket of major rivals, resuming losses and hitting a three-week low, on track for the heftiest weekly loss in six weeks under extreme selling pressures due to concerns about the US financial stability.
Now investors await important and crucial remarks by several Fed officials, looking for new clues on the odds of multiple rate cuts this year.
The Index
The dollar index fell 0.75% today to 99.14, the lowest since April 29, with a session-high at 99.94.
On Thursday, the index rose 0.2%, the first profit in four sessions after Trump’s tax bill passed the House of Representatives successfully.
Weekly Trades
The index is down 1.85% so far this week against a basket of major rivals, heading for the first weekly loss in five weeks, and the heftiest since early April.
The greenback is pressured by increasing concerns about the US financial stability, nudging investors towards safer havens.
It comes after Moody’s decision to cut the US credit rating last week, the investor focus turned to the massive US debt reaching $36 trillion, and to Trump’s new tax reform bill, which would add trillions to this burden.
Trump described the legislation as a “big beautiful bill”, and has already passed the House of Representatives and headed to the Senate where it’s expected to face months of discussions and changes.
US Rates
US President Donald Trump once again called on the Federal Reserve to cut interest rates in posts on his social media accounts.
Atlanta Fed President Raphael Bostic said earlier this week that he’s leaning towards a single interest rate cut this year.
According to the Fedwatch tool, the odds of a Fed 0.25% interest rate cut in June stood at just 8%.
The odds of a 0.25%% Fed rate cut in July stood at 37%.
Traders now expect 50 basis points overall of Fed rate cuts this year, likely starting in October.
Gold on track for weekly profit on US financial concerns
Gold prices rose in European trade on Friday, resuming gains after a short hiatus yesterday and heading for a weekly profit as the dollar dipped against a basket of major rivals.
It comes after the US credit rating downgrade, which renewed concerns about the US financial stability and raised the challenges facing US policymakers.
The Price
Gold prices rose 1.2% today to $3334 an ounce, with a session-low at $3287.
On Thursday, gold lost 0.6%, the first loss in four days on profit-taking away from a two-week high at $3345 an ounce.
Weekly Trades
This week, gold prices are up 4% so far, on track for the second weekly profit in three weeks, and the largest such profit in six.
US Dollar
The US dollar index fell 0.5% on Friday on track for a two-week trough at 99.34 against a basket of major rivals.
The greenback is pressured by increasing concerns about the US financial stability, nudging investors towards safer havens.
It comes after Moody’s decision to cut the US credit rating last week, the investor focus turned to the massive US debt reaching $36 trillion, and to Trump’s new tax reform bill, which would add trillions to this burden.
Trump described the legislation as a “big beautiful bill”, and has already passed the House of Representatives and headed to the Senate where it’s expected to face months of discussions and changes.
US Rates
US President Donald Trump once again called on the Federal Reserve to cut interest rates in posts on his social media accounts.
Atlanta Fed President Raphael Bostic said earlier this week that he’s leaning towards a single interest rate cut this year.
According to the Fedwatch tool, the odds of a Fed 0.25% interest rate cut in June stood at just 8%.
The odds of a 0.25%% Fed rate cut in July stood at 37%.
Traders now expect 50 basis points overall of Fed rate cuts this year, likely starting in October.
SPDR
Gold holdings at the SPDR Gold Trust rose 4.01 tons yesterday to a total of 923.89 tons, the highest in a week.
Sterling on track for huge weekly profit
Sterling rose in European trade on Friday against a basket of major rivals, extending gains for the fifth straight session against the dollar and about to mark three-year highs.
The pound is heading for a huge weekly profit as the dollar faces heavy selling pressures, and after data that showed increasing inflationary pressures on the Bank of England policymakers, hurting the odds of a June rate cut.
The Price
The GBP/USD rose 0.25% today to $1.3449, with a session-low at $1.3415.
The pound rose less than 0.1% on Wednesday against the dollar, the fourth profit in a row, scaling a three-year peak at $1.3469.
Weekly Trades
The pound is up 1.3% so far against the dollar this week, on track for the biggest weekly profit since mid April.
US Dollar
The US dollar index fell 0.25% on Friday on track for a two-week trough at 99.34 against a basket of major rivals.
The greenback is pressured by increasing concerns about the US financial stability, nudging investors towards safer havens.
It comes after Moody’s decision to cut the US credit rating last week, the investor focus turned to the massive US debt reaching $36 trillion, and to Trump’s new tax reform bill, which would add trillions to this burden.
UK Rates
UK consumer prices rose 3.5% y/y in April, up from 2.6% in March, and passed estimates of a 3.3% rise.
The data renewed inflationary pressures on the Bank of England policymakers, and tanked the odds of a June 0.25% rate cut from 25% to 15%.
Now traders await important UK data on various sectors to gather even more clues on the second quarter performance.
The UK GDP grew by a brisk 0.7% in the first quarter, beating estimates of a 0.6% rise and compared to the 0.1% growth rate in the last quarter of 2024.