Bitcoin holds ground above $90,000 in wait for more stimuli
Bitcoin advanced on Wednesday for the first time in three days away from one-week lows, holding its ground above $90,000 in wait for additional stimuli that could help push the prices to fresh record highs.
MicroStrategy conducted another round of massive bitcoin purchases, and is expected to purchase even more in upcoming months.
The current gains come amid a positive sentiment that’s gripping the crypto market, with US treasury yields losing ground before important US data.
Prices
Bitcoin rose 2.1% at Bitstamp today to $93,896, with a session-low at $91,760.
On Tuesday, bitcoin lost 1.2%, hitting a week low at $90,742.
The losses came as correction and profit taking away from the record high of $99,800.
Crypto Market Value
The market value of cryptocurrencies rose by $94 billion today to a total of $3.399 trillion as both bitcoin and ethereum rebounded.
The crypto market value hit a record high on November 25 at $3.488 trillion.
MicroStrategy
Through the X Platform, the MicroStrategy’s co-founder and chairman, Micheal Saylor, announced the purchase of 55,000 bitcoins, bringing the company’s total holdings up to 386,700 bitcoins.
The purchase was concluded between November 18 and 24, with the company spending $5.4 billion, meaning it bought bitcoins with an average price of $97,862, an unprecedented price.
US Yields
US 10-year treasury yields tumbled 1.2% today to a four-week trough at 4.256%, pressuring the greenback.
Federal Reserve officials expressed confidence that inflation will taper off and the labor market will remain strong, which would allow for gradual interest rate cuts, according to the November policy meeting minutes.
Following the minutes, the odds of a 0.25% Fed interest rate cut in December rose from 52% to 67%.
Now traders await important US GDP growth, unemployment claims, and personal consumption data for October to gather more clues.
US dollar skids to one-week low before important data
The US dollar skidded in European trade on Wednesday to a week low on aggressive selling pressures as US 10-year treasury yields lose ground.
The developments come after the somewhat bearish Federal Reserve’s meeting minutes, which boosted the odds of a 0.25% interest rate cut in December.
Now investors await a series of important US growth and inflation data later today to gather more clues.
The Index
The dollar index fell 0.5% today to 106.33, with a session-high at 106.92.
On Tuesday, the index rose 0.1%, after a 0.6% loss in the previous session on profit-taking away from a two-year high at 108.07.
US Yields
US 10-year treasury yields tumbled 1.2% today to a four-week trough at 4.256%, pressuring the greenback.
Federal Reserve officials expressed confidence that inflation will taper off and the labor market will remain strong, which would allow for gradual interest rate cuts, according to the November policy meeting minutes.
Following the minutes, the odds of a 0.25% Fed interest rate cut in December rose from 52% to 67%.
Now traders await important US GDP growth, unemployment claims, and personal consumption data for October to gather more clues.
US GDP growth is estimated at 2.8% in the third quarter, down from 3% in the second quarter.
US unemployment claims are expected up slightly to 215 thousand in the week ending November 23 from 213 thousand in the previous reading.
Gold gains ground before decisive US data
Gold prices rose in European trade on Wednesday, extending gains for the second straight session and rebounding from one-week lows as the greenback lost ground following the Federal Reserve’s latest meeting minutes.
Bearish remarks by Fed members in the minutes boosted the odds of a 0.25% Federal Reserve rate cut in December, as investors now wait for crucial US data that will decide the path ahead for policies.
Prices
Gold prices rose 0.8% today to $2653 an ounce, with a session-low at $2627.
On Tuesday, gold prices rose 0.3% away from one-week lows at $2605.
The Dollar
The dollar index fell 0.5% on Wednesday to a week low at 106.33 against a basket of major rivals.
A weaker dollar makes the greenback-denominated gold futures cheaper to holders of other currencies.
US Rates
Federal Reserve officials expressed confidence that inflation will taper off and the labor market will remain strong, which would allow for gradual interest rate cuts, according to the November policy meeting minutes.
Following the minutes, the odds of a 0.25% Fed interest rate cut in December rose from 52% to 67%.
Now traders await important US GDP growth, unemployment claims, and personal consumption data for October to gather more clues.
SPDR
Gold holdings at the SPDR Gold Trust remained unchanged yesterday at 879.41 tons, the highest since November 7.
