Bitcoin rises for third straight session
Cryptocurrencies gained ground on Thursday with bitcoin heading for the third straight profit, about to scale two-week highs amid a spike in positive sentiment.
The gains come amid increasing institutional support from major corporations, while Wall Street rebounded, led by automakers.
The Price
Bitcoin rose 2.5% at Bitstamp today to $92,790, with a session-low at $89,995.
On Wednesday, bitcoin rose 3.9%, marking the second profit in a row and moving away from a three-month trough at $78,197.
Crypto Market Value
The market value of cryptocurrencies rose by $75 billion to a total of $3.140 trillion.
MetaPlanet
Japan’s MetaPlanet corporation continued to expand its holdings of bitcoin, adding 497 more units this week at a value of $43.9 million, with an average price of $88,448, with the company’s total holdings rising to 2888 units valued at $240.2 million.
This mirrors US Microstrategy’s crypto hoarding strategy, and shows increasing institutional confidence in bitcoin as a strategic reserve.
Wall Street
US stock indices rebounded strongly on Wednesday with major indices marking huge profits off four-month lows.
The White House decided to provide exemptions to automakers from the 25% tariffs on Mexico and Canada for a month as negotiations continue.
US dollar hits four-month low before labor data
The US dollar fell in European trade on Thursday against a basket of major rivals, expanding losses for the fourth straight session and plumbing a four-month low amid a heavy selloff.
Positive sentiment is dominating the market after German parties announced massive stimulus plans, while Donald Trump decided to exempt cars from the tariffs on Mexico and Canada.
Now markets await important US labor data, which could provide crucial pricing to the odds of a Fed rate cut in March.
The Index
The dollar index fell 0.3% today to 104.02, the lowest since November 6, with a session-high at 104.39.
The index lost 1.2% on Wednesday, the third loss in a row, and the largest since January 20 following disappointing US private sector data.
Positive Sentiment
The markets are awash with positive sentiment after German coalition parties announced plans to set up an infrastructure fund valued at 500 billion euros and change borrowing rules to boost military spending and growth.
Otherwise, the White House announced exemptions to some automakers from the 25% tariffs on Canada and Mexico for a month.
US Rates
New York Fed President John Williams said the US tariffs will likely push inflation higher, but he believes current interest rate policies are suitable and don’t require changes.
According to the Fedwatch tool, the odds of a 0.25% Fed interest rate cut in March stood at just 5%.
US Labor data
Now investors await important US labor data this week, with unemployment claims expected down to 234 thousand last week from 242 thousand in the previous reading.
Gold prices give up one-week high as US yields rebound
Gold prices fell in European trade on Thursday for the first time in four days, moving away from a week high under pressure from higher US 10-year treasury yields.
Now markets await important US labor data, which could provide crucial pricing to the odds of a Fed rate cut in March.
Prices
Gold prices fell 0.7% to $2899 an ounce, with a session-high at $2926.
On Wednesday, gold prices rose 0.1%, marking the third profit in a row and hitting a week high at $2929 as the dollar dropped.
US Yields
US 10-year treasury yields rose 1.1% on Thursday on track for the third profit in a row, hitting a week high at 4.326%, in turn boosting the dollar.
It comes as investors assess the impact of US tariffs on Canada, Mexico, and China in regards to inflation in the US.
According to the Fedwatch tool, the odds of a 0.25% Fed interest rate cut in March stood at just 5%.
SPDR
Gold holdings at the SPDR Gold Trust fell 1.44 tons on Wednesday to a total of 900.36 tons, the lowest since February 20.
