Archive for Financial News – Page 198

19 Jul

Robert Prechter Interview for the Ages: Quick Takes on Big Financial Trends

‘That’s not even the craziest indicator on this chart. Look at the bottom graph.’

By Elliott Wave International

Robert Prechter’s June 23 interview with GoldSeek.com, which is under 15 minutes, covers a variety of financial topics.

They include stocks with an emphasis on the technology sector (including artificial intelligence), bitcoin, gold and silver, corporate bonds and the prospects for deflation.

You can look below to learn how to listen to the entire interview for free.

But, first, let me share with you just one of the interview topics, and that’s the stock-market sentiment which was on display leading up to the January 2022 top in the blue-chip indexes.

Relatedly, in the GoldSeek interview, Robert said:

Sentiment indicators… can tell you the extent to which [people] are extremely optimistic or pessimistic. Well, 2021 was a year like no other. Finally, in December 2021, I put out an issue called “A Stock Market Top for the Ages.”

Here’s one of the sentiment charts that the December 2021 Elliott Wave Theorist showed along with the commentary (The Elliott Wave Theorist is a monthly publication which covers major financial and cultural trends):

NaryBear

The middle graph is the ratio between the amount of money that Rydex investors have put into bullish funds versus bearish funds. Look toward the left, and you’ll see the words “normal range.”

[Fifteen] years ago, the ratio was around 1:1 or 2:1… In general there was a bit more money in bull funds than in bear.

Investors have been going crazy in the last five years. On November 19, the ratio reached 62:1…

That’s not even the craziest indicator on this chart. Look at the bottom graph, which depicts the ratio of leveraged bullish funds versus leveraged bearish funds. It shows that there is 82 times as much money in the leveraged bullish funds as there is in the leveraged bearish funds.

So, it wasn’t surprising that the Dow Industrials and the S&P 500 index topped early in the very next month.

Getting back to the GoldSeek interview, learn how you can access it for free by following the link.

This article was syndicated by Elliott Wave International and was originally published under the headline Robert Prechter Interview for the Ages: Quick Takes on Big Financial Trends. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.

Financial News Stock Market News
19 Jul

The cryptocurrency market digest (BTC, MATIC). Overview for 19.07.2023

By RoboForex.com

The BTC exchange rate reached 30,082 USD on Wednesday.

Last night, the flagship cryptocurrency experienced a remarkable decline and tested support at 29,800 USD. This is due, firstly, to the lack of new buying drivers. Secondly, the time factor is working against buyers: the longer the pause in purchases persists, the less positive momentum there is.

To put it simply, the market missed a favourable opportunity to rise above. BTC needs to return to 30,800 USD to continue its growth.

The cryptocurrency market capitalisation amounted to 1.210 trillion USD. The share of BTC decreased to 48.3%, and that of ETH dropped to 19.0%.

Valkyrie files an application with SEC to launch an ETF

Valkyrie has filed an application with the US Securities and Exchange Commission (SEC) for approval of a licence to launch a spot Bitcoin ETF. The company has previously been involved in obtaining licences but has now revised its application to comply with the new SEC requirements.

9.8 million MATIC tokens transferred to Binance

A large investor has transferred approximately 7.4 million USD worth of cryptocurrency to the Binance exchange. According to Whale Alert, this amounts to 9.8 million MATIC tokens. The MATIC rate may decrease significantly in the next few days.

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Cryptocurrencies Financial News
19 Jul

Bank of England will STILL RAISE interest rates despite cooling inflation: deVere CEO

By George Prior

The Bank of England will raise interest rates again next month despite UK inflation cooling, predicts the CEO of one of the world’s largest independent financial advisory, asset management and fintech organizations.

The warning from deVere Group’s Nigel Green comes as fresh figures reveal that UK inflation fell to 7.9% in June, from 8.7% the month before.

He says: “Despite the data showing that the battle against inflation in the UK is being won, we expect the Bank of England will confirm it’ll continue with its aggressive interest rate hiking agenda at the monetary policy meeting on August 1.

“Although the consumer price index fell to 7.9% last month, amid lower petrol prices and a slowdown in the pace of growth for food, beverages and other basics, the central bank officials will likely argue that there is still work to be done.

“We believe the Bank will insist that although inflation is certainly coming down, it is doing so very, very gradually. It remains sticky – still the highest in the G7 – and a long way from the 2% target.

“They will say prices are still far too high and rising at a quicker pace than they have done in the past. In addition, they are likely to cite strong wage growth in the three months to May.”

He continues: “Against this backdrop, we expect the Bank of England to increase interest rates for a 14th consecutive time at its next policy meeting – and we wouldn’t be surprised if there were a second consecutive 50 basis point hike.”

Another interest rate hike could “pile on more misery” for households, homeowners, and businesses.

Higher interest rates lead to increased borrowing costs, making mortgages more expensive. Homeowners with variable-rate mortgages are likely to face higher monthly payments. Rising interest rates will also reduce disposable income as loan repayments increase, affecting household spending and overall economic activity.

Businesses reliant on borrowing may face higher interest expenses, which can affect their profitability and ability to expand or invest. In addition, higher interest rates can reduce consumer spending, affecting businesses dependent on consumer demand.

Hiked interest rates typically negatively impact the value of existing fixed-income investments, such as bonds, as newer issuances offer higher yields.

The higher rates also historically lead to stock market uncertainty and increase volatility, as investors reassess the attractiveness of different investments. Sectors sensitive to interest rates, such as housing, cars, and financial sectors, could experience greater impacts than others.

Nigel Green concludes: “We believe that although the battle to tame inflation seems to be being won, with the lowest reading in 16 months, the Bank of England is highly unlikely to be dissuaded from its course of rate hiking action for the time being.”

About:

deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.  It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.

Economics & Fundamentals Financial News
19 Jul

UK100_m soars on easing UK inflation

By ForexTime

  • UK100_m tracks FTSE 100 index which measures 100 largest UK stocks
  • Lower-than-expected UK inflation = lowered bets for BOE rate hikes = Pound falls
  • Weaker GBP improves earnings outlook for FTSE 100 companies, pushing UK100_m higher
  • Technical analysis points to 4 potential upside targets for UK100_m

 

The UK100_m has resurfaced above the psychologically-important 7500 level after today’s UK inflation data came in below market expectations.

Looking at the price charts, the UK100_m index ascent is significant, given that it’s gone above several notable price levels:

  • the upper bound of its downtrend since April (broken out of the multi-month downtrend)
  • a key Fibonacci level from its October 2022 – February 2023 ascent
  • its early-July cycle high of 7565.2

NOTE: The UK100_m tracks the FTSE 100 index (the benchmark used to measure the performance of blue-chip UK stocks).

 

Latest UK CPI: What you need to know

The UK’s consumer price index (CPI) measures headline inflation – the change in prices that UK consumers pay for goods and services.

The CPI rose by 7.9% in June 2023 compared to June 2022 (year-on-year).

This is the first time that the headline CPI number has dropped below the 8% mark since March 2022!

  • June’s 7.9% figure was also lower than the market’s forecast of 8.2%.
  • June’s CPI growth of 7.9% was also below May’s 8.7% year-on-year figure.

This shows that UK inflation is slowing noticeably, compared to the double-digit figures posted on most months between July 2022 till March 2023, a period when the CPI peaked at 11.1% last October.

 

What does the lower-than-expected CPI data mean for the BOE?

Markets have now greatly reduced their bets for future rate hikes by the Bank of England (BOE).

Note that the BOE has already raised its benchmark rate by 490 basis points since December 2021.

That’s the BOE’s most aggressive series of rate-hikes since the late-1980s: the same decade when UK CPI was also posting double-digit figures.

The aim for these rate hikes is to subdue UK inflation.

And judging by today’s data release, it appears to be working.

 

Looking ahead, here’s what markets are predicting at the time of writing as for the BOE’s next moves:

  • a less-than-even (43.8%) chance of a larger 50-basis point (bp) hike at the upcoming BOE rate decision due August 3rd.
  • a less-than-even (44.7%) chance that the BOE can even proceed with 100-bps in hikes before UK interest rates peak at around 5.8%.

Compare the above odds with what markets had predicted before today’s UK CPI data announcements:

  • 69% chance of a 50-bps hike by the BOE in early August
  • fully expected a total of 100-bps in hikes by the BOE by May 2024, with a 1-in-3 chance of the total remaining hikes being 125 basis points to send the benchmark rate above 6%!

 

Hence, with the slashing of the odds surrounding BOE rate hikes, no surprise that the British Pound is weaker today against all of its G10 peers, except for the Japanese Yen:

NOTE: A currency tends to weaken when markets expect that interest rates in that country won’t/can’t move much higher. 

 

GBPUSD has returned below the psychologically-important 1.300 mark.

 

How does the Pound affect the UK100_m?

Note that British Pound has an inverse relationship with the UK100_m.

That means that when GBP weakens, then the UK100_m tends to strengthen, and vice versa.

Consider this:

  • GBP is the second-best performing G10 currency against the US dollar so far in 2023.
    GBPUSD has a year-to-date advance of over 7%, even after today’s declines.
  • On the other hand, the FTSE 100 index is a clear laggard among benchmark stock indices in developed markets.
    The FTSE 100 has climbed a “mere” 8.7% so far this year, while the likes of the S&P 500, the Euro Stoxx 50, and the Nikkei 225 have all risen by double-digits so far this year!

Generally speaking, this inverse relationship between GBPUSD and the UK100_m has shown up 92% of the time on a 3-day rolling period over the past 30 years (according to Bloomberg’s correlation data).

 

This inverse relationship is due to the fact that companies listed on the FTSE 100 index gets more than 80% of their revenue collectively from outside of the UK, as of October 2022 according to FTSE Russell.

Hence, a weaker Sterling tends to translate into more earnings, in GBP terms, for these FTSE 100 companies.

No surprise then that the UK100_m is climbing higher as GBPUSD is falling.

 

 

Technical Perspective: What’s next for UK100_m?

With the forming of a new higher top today, four price targets can be calculated from there.

Attaching the Fibonacci tool to the top at 7565.3 price level and dragging it to a bottom that formed on 7 July at 7222.3, the following potential targets were established:

  • Potential Target 1: 7702.5
  • Potential Target 2: 7771.1
  • Potential Target 3: 7908.3
  • Potential Target 4: 8079.8

If the bearish momentum exceeds the bullish, this could cause the price to sharply depreciate below the critical support level that formed on 7 July at 7222.3, consequently invalidating the long setup and triggering a sell signal.

However, from a fundamental perspective, UK100_m bulls (those hoping prices will move higher) would need a drastically weakening GBP, perhaps by way of a shocking announcement by the BOE that its rate hikes are to be soon halted, in order for the UK100_m to attain the psychologically-important 8,000 mark.

 

The above scenario is based on the FXTM Signals that are posted twice a day (before the London and New York sessions) for all FXTM clients.

This can be accessed from the MyFXTM profile, within the Trading Services section (left-hand bar).

Forex-Time-LogoArticle by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

Financial News Stock Market News
19 Jul

Global inflationary pressures continue to decline. Today, investors’ focus is on the quarterly reports of Tesla and Netflix

By JustMarkets

At Tuesday’s stock market close, the Dow Jones Index (US30) increased by 1.06%, while the S&P 500 Index (US500) added 0.71%. The NASDAQ Technology Index (US100) closed positive by 0.76% yesterday. On Tuesday, stock indices posted strong gains as investors welcomed positive quarterly results from a number of major corporations, including Wall Street banks. At the same time, weaker-than-expected US retail sales data raised the stakes for weakening inflation in the country, which in turn should prompt the Federal Reserve to take a less hawkish stance in the coming months. There is a high probability that the US Fed will end its tightening cycle as early as its July meeting.

Morgan Stanley (MS) jumped by 6% after second-quarter results beat both top and bottom lines forecasts. Charles Schwab Corp (SCHW) topped the growth leaderboard, up more than 12% after posting better-than-expected quarterly results. Quarterly results from companies like Tesla (TSLA) and Netflix (NFLX) are expected today. Tesla’s quarterly results will likely focus on margins following the electric carmaker’s recent price cuts, while Netflix’s quarterly results will focus investor attention on subscriber growth.

Canada’s inflation rate fell to 2.8% from 3.4% year-over-year. Core inflation (which excludes food and energy prices) fell from 3.7% to 3.2% y/y. The sharp decline in inflationary pressures precludes further policy tightening by the Bank of Canada.

Equity markets in Europe were mostly up on Tuesday. Germany’s DAX (DE30) increased by 0.35%, France’s CAC 40 (FR40) gained 0.38% yesterday, Spain’s IBEX 35 (ES35) closed positive by 0.19%, and the UK’s FTSE 100 (UK100) closed up by 0.64%.

ECB officials are becoming less hawkish in their statements. If earlier almost all officials in one voice said about at least two rate hikes of 0.25% at each of them, now the tone of speech has changed, and now some politicians expect one rate hike of 0.25%, and the September decision will depend on incoming data. Apparently, the decline in global inflation, along with weak Eurozone GDP reports, made the officials reconsider their plans for further policy tightening.

Gold rose sharply yesterday after US retail sales rose less than expected in June, putting pressure on US Treasury yields and the US dollar. The US dollar’s overreaction to lower inflation and retail sales suggests that the market is in no mood to buy the dollar amid a growing view that the Fed is close to ending its tightening cycle. The market expects rate cuts from around mid-2024, with nearly five rate cuts by the end of next year. For gold and silver, this is a fundamental strengthening factor for the coming months.

Crude oil prices rose sharply on Tuesday after Chinese officials said the government would soon implement more pro-consumption policies, as data this week showed the country’s economy barely grew in the second quarter.

Asian markets traded flat yesterday. Japan’s Nikkei 225 (JP225) was up by 1.16% for the day, China’s FTSE China A50 (CHA50) decreased by 0.29%, Hong Kong’s Hang Seng (HK50) fell by 1.21%, and Australia’s S&P/ASX 200 (AU200) ended Tuesday positive by 0.42%.

New Zealand’s inflation rate fell from 6.7% to 6% on an annualized basis. Over the last quarter, the consumer price index posted a 1.1% increase, the lowest since the first quarter of 2021. The RBNZ said in its monetary policy review last week that it expects core inflation to fall, although it did not comment on when this might happen. Nevertheless, there will be additional inflationary pressures in the next quarter as the government’s fuel tax and public transport subsidy exemptions expire on July 1.

S&P 500 (F)(US500) 4,554.98 +32.19 (+0.71%)

Dow Jones (US30) 34,951.93 +366.58 (+1.06%)

DAX (DE40)  16,125.49 +56.84 (+0.35%)

FTSE 100 (UK100) 7,453.69 +47.27 (+0.64%)

USD Index  100.04 +0.10 (+0.10%)

Important events for today:
  • – New Zealand Consumer Price Index (q/q) at 01:45 (GMT+3);
  • – UK Consumer Price Index (m/m) at 09:00 (GMT+3);
  • – Eurozone Consumer Price Index (m/m) at 12:00 (GMT+3);
  • – US Building Permits (m/m) at 15:30 (GMT+3);
  • – US Crude Oil Reserves (w/w) at 17:30 (GMT+3).

By JustMarkets

 

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

Economics & Fundamentals Financial News
18 Jul

The US reporting season is heating up. The People’s Bank of China may cut rates to support the economy

By RoboForex.com

At Monday’s stock market close, the Dow Jones Index (US30) increased by 0.22%, while the S&P 500 Index (US500) added 0.39%. The NASDAQ Technology Index (US100) closed positive by 0.93%.

The Business Activity Index of New York State companies fell slightly in July, despite rising orders and easing inflationary pressures. The Federal Reserve Bank of New York’s General Business Conditions Index fell by 1.1 to 5.5 points. A value above zero indicates growth. The median forecast in a survey of economists suggested a drop of 3.5.

Investors are awaiting quarterly results from Bank of America (BAC) and Morgan Stanley (MS) today. Sentiment toward the biggest banks strengthened last week after JPMorgan Chase & Co (JPM) and Wells Fargo (WFC) reported better-than-expected quarterly results, though Citi was among those whose earnings fell short of analysts’ expectations. Tesla (TSLA ) is up more than 3% after starting production of its Cybertruck in Texas, with the electric vehicle maker expected to ship about 2,000 units this year. Tesla’s quarterly report is expected this Wednesday. Ford Motor (F) shares, meanwhile, fell more than -5% after the F-150 Lightning suffered a $10,000 price cut amid increased competition from Rivian Automotive Inc (RIVN) and Tesla Cybertruck. Shares of telecom giant AT&T (T) fell by -6% after banks Citi and JPMorgan downgraded them to “neutral” from “buy” amid concerns that the company and others will have to incur significant costs to remove old copper cables used for telephony and other related purposes, which some say could pose an environmental hazard.

Equity markets in Europe were mostly down on Monday. Germany’s DAX (DE30) decreased by 0.23%, France’s CAC 40 (FR40) lost 1.12% yesterday, Spain’s IBEX 35 (ES35) closed at its opening price, and the UK’s FTSE 100 (UK100) closed down by 0.38%. Sentiment in Europe was affected by data indicating a significant slowdown in economic growth in China, which is the main export market for major European companies. A number of speeches by ECB officials are expected this week. The comments will show what the central bank is thinking ahead of its next policy-setting meeting later this month.

Asian markets were mostly falling yesterday. Japan’s Nikkei 225 (JP225) was down by 0.09% for the day, China’s FTSE China A50 (CHA50) fell by 1.25%, Hong Kong’s Hang Seng (HK50) was not trading yesterday due to Typhoon Talim, and Australia’s S&P/ASX 200 (AU200) ended Monday negative 0.06%. Hong Kong’s Hang Seng Index fell sharply on Tuesday, catching up with the losses of its Asian peers after data showed a significant slowdown in China’s economic growth in the second quarter. Shares of major technology companies also suffered losses after strong gains last week. Baidu Inc (BIDU), Alibaba Group Holding Ltd (BABA), and Tencent Holdings Ltd – China’s BAT trio – lost between 1.8% and 3% drop. The weak economic data also raised the likelihood of additional stimulus measures from Beijing. There is information that the People’s Bank of China (RBA) may cut interest rates further and reduce its bank reserve requirements in the third quarter in an attempt to boost growth.

The RBA’s June monetary policy report showed that Australia’s central bank decided to leave interest rates unchanged because the policy was clearly restrictive, and there was a risk that a contraction in household finances could lead to a sharp downturn and higher unemployment. However, the bank maintained a warning that some tightening may be needed to contain inflation. The board considered raising the money rate by 25 basis points to 4.35% but then decided to pause

S&P 500 (F)(US500) 4,522.79 +17.37 (+0.39%)

Dow Jones (US30) 34,585.35 +76.32 (+0.22%)

DAX (DE40)  16,068.65 −36.42 (−0.23%)

FTSE 100 (UK100) 7,406.42 −28.15 (−0.38%)

USD Index  99.89 −0.02 (−0.02%)

Important events for today:
  • – Australia RBA Meeting Minutes (m/m) at 04:30 (GMT+3);
  • – Canada Consumer Price Index (m/m) at 15:30 (GMT+3);
  • – US Retail Sales (m/m) at 15:30 (GMT+3);
  • – US Industrial Production (m/m) at 16:15 (GMT+3).

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Economics & Fundamentals Financial News
18 Jul

Caution Lingers On China Fears, Earnings Take Centre Stage

By JustMarkets

Asian shares flashed red on Tuesday as concerns over China’s sluggish economic recovery weighed on sentiment.

The disappointing GDP data published in the previous session along with the hefty losses posted by China’s Evergrande over two years sapped investor confidence in the world’s second-largest economy. Interestingly, European futures are pointing to a flat open, shrugging off the caution from Asia with investors focusing on key economic data and corporate earnings. On Wall Street, the S&P 500 closed at 15-month highs yesterday and could be injected with more volatility as earnings season switches into higher gear. The likes of Bank of America, Morgan Stanley, Goldman Sachs, Netflix, and Tesla among others will announce their quarterly results this week.

In the currency arena, the dollar slightly weakened against other G10 currencies ahead of the U.S. retail sales and industrial production data released later today. Looking at commodities, oil bulls were able to draw strength from Russia’s plans to cut crude exports while gold prices nudged higher, supported by China growth fears and expectations around the Fed ending its rate hike cycle.

Dollar shaky ahead of key US data 

The pending U.S. retail sales and industrial production figures could influence monetary policy expectations before the Fed meeting next week. After the June US CPI report cooled more than expected, investors are searching for more signs of inflation slowing in the world’s largest economy. Markets are forecasting retail sales to rise 0.5% in June, marking an increase from 0.3% in the prior month. The industrial production figures are expected to hold steady in June after falling 0.2% in May. Should the incoming US data bring a positive surprise, this could refuel speculation around the Fed keeping interest rates higher for longer.

Commodity Spotlight – Gold 

Gold flirted around the $1960 level this morning as market players evaluated China’s sluggish growth and speculation around the Fed ending its rate hike campaign.

The precious metal is likely to remain supported by a weaker dollar and subdued Treasury yields ahead of another busy week for financial markets. Fresh volatility could be on the cards for gold over the next few days as investors focus not only on US economic data but corporate earnings which could influence overall sentiment. Should gold experience a clean breakout and solid close above $1960, this may encourage a move towards $1985 and $2000 respectively. But if $1960 proves to be a tough resistance, prices may slip back towards $1940 and $1932.

By JustMarkets

 

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

Economics & Fundamentals Financial News
17 Jul

Brent Failed to Rise Despite Improved Sentiment

By RoboForex Analytical Department

Crude oil prices have paused in their rally. Brent quotes on Monday dropped to 79.20 USD per barrel.

One of the reasons for this local decline might be the market decision to lock in a part of the profit after the steady growth earlier. This version is also supported by the fact that today is the first work day after the weekend.

At the same time, the commodity market sentiment improved noticeably over the last week. Large investment houses still expect a shortage in crude oil supply in the second half of this year, which looks like a favourable factor, keeping in mind the current demand parameters.

The buyers are equally supported by the fundamental background. The geopolitical situation in Libya is unstable, which might lead to problems with the supply of energy carriers.

Technical analysis of Brent:

On the H4 Brent chart, the structure of the third wave of growth is developing. At a certain point, the quotes rose to 78.00. A consolidation range formed around this level, the price broke it upwards and extended to 81.45. Today the market is correcting this growth. A technical return to 78.00 is expected with a test of this level from above. Next, a rise to 84.00 is to follow. This is a local target. After the quotes reach this level, a new correction to 78.00 could develop, followed by an increase to 85.00. This is the first target. Technically, this scenario is confirmed by the MACD: its signal line is at the highs, moving out of the histogram area, which is a signal in favour of a decline to zero.

On the H1 Brent chart, a corrective wave to 78.00 is developing. After it is over, a wave of growth to 84.00 is expected to start. This is a local target. Technically, this scenario is confirmed by the Stochastic oscillator: its signal line is under 20, ready to go on growing to 50. And if this level also breaks, the potential for a rise to 80 could open.

Disclaimer

Any forecasts contained herein are based on the author’s particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.

Energy Financial News
17 Jul

Bitcoin can help mitigate climate change emergency: deVere CEO

By George Prior 

Bitcoin could help mitigate the climate change emergency that we’re seeing in real time as swathes of the northern hemisphere experience extreme heatwaves, affirms the CEO of one of the world’s largest independent financial advisory, asset management and fintech organizations.

The analysis from Nigel Green of deVere Group comes as extreme temperatures are breaking records worldwide. Both the US and China saw the mercury crossing 50C on Sunday and southern Europe is bracing for the all-time records to be broken this week.

He says: “Amidst the global climate change emergency, a perhaps surprising contender is emerging as a potential solution: Bitcoin.

“Contrary to belief in some quarters, this revolutionary digital currency has the capacity to drive positive change and aid in the fight against climate change.

“With its unique characteristics and transformative potential, Bitcoin is positioned to play a crucial role in transitioning to a more sustainable and eco-friendly future.”

The deVere CEO continues: “An often-overlooked point is that Bitcoin mining (the process of verifying and adding transactions to the Bitcoin blockchain while also creating new Bitcoins) could speed up the transition from fossil fuels to renewables.

“Clearly, clean energy is the way forward, but their sources are sometimes irregular and there’s not enough storage capacity for when these sources generate excess energy.

“Bitcoin miners, who need huge amounts of energy, could act as major buyers of last resort, providing substantial profit for investment and expansion. This would then enhance the renewables supply, which would go on to bring down prices for consumers and further drive demand.”

Bitcoin’s rise in popularity has resulted in increased wealth accumulation for early adopters and cryptocurrency enthusiasts. Many individuals within the Bitcoin community are leveraging their newfound wealth to fund sustainable projects and initiatives.

“This philanthropic approach can lead to significant investments in renewable energy, clean technology, and other climate change mitigation efforts,” notes Nigel Green.

He also stresses the promotion of financial inclusion. “Bitcoin has the potential to enhance financial inclusion for underserved populations around the world. By providing individuals with access to digital currencies and blockchain-based financial services, Bitcoin can empower the unbanked and foster economic growth in marginalized communities.

“This increased access to financial resources enables individuals to invest in sustainable practices and contribute to climate change mitigation.”

He concludes: “While no monetary system or investment is perfect, and the crypto ecosystem can still improve in many ways, the argument that digital currencies cannot necessarily form part of a climate change mitigation strategy does not stand-up to scrutiny.

“Indeed, as the emergency intensifies, we must use every weapon at our disposal to fight it – and Bitcoin is one of them.”

About:

deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.  It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.

 

Cryptocurrencies Financial News
17 Jul

The cryptocurrency market digest (BTC). Overview for 17.07.2023

By RoboForex.com

The BTC quotes on Monday are hovering near 30,313 USD.

The market failed to continue skyrocketing though it still had all reasons to do so. Last week, the resounding victory of Ripple over the SEC in court provided the cryptocurrency sector with a mighty momentum. More than that, the crash of the USD also facilitated the flow of money to digital assets.

The technical boundary at 31,150 USD was tested but the next one at 31,500 USD remained intact, pushing BTC back.

The daily price chart is giving signals for a decline. It is high time to turn to the support level near 29,800 USD. For the flagship cryptocurrency to start growing again, it needs to secure above 31,000 USD.

The cryptocurrency market capitalisation amounts to 1.220 trillion USD. The BTC share remains at 48.5%, while the ETH share has dropped to 19.1%.

Coinbase capitalisation rose noticeably

The capitalisation of the Coinbase cryptocurrency exchange has increased to 25 billion USD from under 7 billion USD at the beginning of the year. Just last Thursday, the capitalisation of the exchange platform surged 20%.

The total cost of Cardano TVL reached its annual high

The total cost of assets blocked in smart contracts (TVL) of the Cardano network increased to 209 million USD. This is the annual high. In January this year, the digit was assessed at no more than 50 million USD.

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Cryptocurrencies Financial News
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