Bitcoin backs off three-week high on profit-taking
Bitcoin fell on Friday away from three-week highs on profit-taking, while US 10-year treasury yields rallied, in turn hurting the risk appetite.
Despite the correctional decline, the world’s most valuable cryptocurrency remains underpinned by new corporate purchases, which boosts institutional trust in the currency.
The Price
Bitcoin fell 2.8% at Bitstamp today to $84,784, with a session-high at $87,481.
On Thursday, bitcoin rose 0.5%, resuming gains and approaching a three-week high at $88,772 once more.
Crypto Market Value
The market value of cryptocurrencies fell by over $100 billion to a total of $2.860 trillion.
US Yields
US 10-year treasury yields are trading near four-week highs at 4.400%, hurting the risk appetite.
The developments come ahead of important US consumer spending data, which would provide important clues on the path ahead for Fed interest rates.
Institutional Investments
Through the X platform, Microstrategy’s CEO Micheal Saylor announced another round of purchases amounting to 6911 units of bitcoin.
The company spent $584 million for the new purchase, paying on average $84,529 per unit, with the company’s total holdings now amounting to 506,136 units, with a total value of $33.74 billion.
MetaPlenet
Japan’s MetaPlanet also continued to expand its bitcoin holdings, adding 150 additional units this week for a value of $12.57 million, with the company’s total holdings thus rising to 2350 units valued at $278.8 million.
US dollar resumes gains before spending data
The US dollar rose in European trade on Friday against a basket of major rivals, resuming gains after a short hiatus and about to touch three-week highs, and on track for the second weekly profit in row.
Now investors await important US consumer spending data later today, which would help define fresh pricing for Fed rate cuts this year.
The Index
The dollar index rose 0.2% today to 104.50, with a session-low at 104.20.
On Thursday, the index lost 0.4% on profit-taking away from three-week highs at 104.68.
Weekly Trades
The dollar index is up 0.4% so far this week on track for the second weekly profit in a row.
Auto Tariffs
US President Donald Trump announced aggressive 25% tariffs on imported cars and auto parts starting next week.
Canadian Prime Minister Mark Carney asserted that Canada will respond to this “attack” with new trade measures.
Investors worry that upcoming reciprocal tariffs by Trump next week will raise inflation even further and slow economic growth.
US Rates
Minneapolis Fed President Neil Kashkari said even as the Fed achieved a log of progress in containing inflation, there’s still more work to do to bring inflation to the 2% target.
Richmond Fed President Thomas Parkin said that current “moderately restrictive” monetary policies by the Federal Reserve are appropriate amid rising uncertainty and rapid changes in US government policies.
According to the Fedwatch tool, the odds of a May 0.25% Fed rate cut stood at 12%.
The odds of a similar cut in June stood at a much higher 65%.
Gold hits fresh record high near $3100
Gold prices rose in European trade on Friday and expanded the gains for the second straight session, hitting a fresh record high on track for trading above $3100 for the first time ever, while heading for the fourth weekly profit in a row.
The gains come amid increasing haven demand on the metal with mounting global trade tensions after Donald Trump’s aggressive auto tariffs.
The Price
Gold prices rose 0.95% today to $3086 an ounce, a record high, with a session-low at $3054.
On Thursday, prices rose 1.25% to a new record high amid concerns about a total global trade war.
Weekly Trades
Gold prices are up 2% so far this week on track for the fourth weekly profit in a row.
Global Trade Tensions
US President Donald Trump announced aggressive 25% tariffs on imported cars and auto parts starting next week.
Canadian Prime Minister Mark Carney asserted that Canada will respond to this “attack” with new trade measures.
Investors worry that upcoming reciprocal tariffs by Trump next week will raise inflation even further and slow economic growth.
US Rates
Minneapolis Fed President Neil Kashkari said even as the Fed achieved a log of progress in containing inflation, there’s still more work to do to bring inflation to the 2% target.
Richmond Fed President Thomas Parkin said that current “moderately restrictive” monetary policies by the Federal Reserve are appropriate amid rising uncertainty and rapid changes in US government policies.
According to the Fedwatch tool, the odds of a May 0.25% Fed rate cut stood at 12%.
The odds of a similar cut in June stood at a much higher 65%.
SPDR
Gold holdings at the SPDR Gold Trust rose 0.29 tons yesterday to a total of 929.65 tons.
