Aurelia Butler

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    in Cryptocurrency

    Why analysts are calling the next potential Bitcoin halving “pivotal”

    Bitcoin halvingKnown as “halving,” the process could see the amount of Bitcoin received by participants in the blockchain network underpinning the token slashed to 3.125 from 6.25.Halving limits the number of Bitcoin in circulation, possibly lowering fresh supply on the open market.Roughly speaking, halving occurs about once every four years, or after the network has verified transactions on a total of 210,000 blocks. The first halving took place in November 2012, when the return from mining stood at 50 Bitcoin. Two more halvings happened in 2016 and 2020.Eventually the reward is due to hit a mark of 0.00000001 Bitcoin, the lowest denomination of the token. Called a “satoshi,” this amount could theoretically be the reward until the proposed limit of 21 million Bitcoin in circulation is potentially reached in about 2140.When could the next Bitcoin halving occur?The next Bitcoin halving will likely take place around April 24 this year, Menno Martens, Crypto Specialist at VanEck told Investing.com.Martens called the event “pivotal,” noting that prior halvings have resulted in rallies in the price of Bitcoin and the overall capitalization of the crypto market.The first halving in 2012 saw the price of Bitcoin shoot up from around $12 to around $130 six months later, according to data from crypto exchange Binance. Following the second in 2016, it soared from $660 to around $900 in half a year. The third in May 2020: $8,600 to $15,700 by November that year.”This historical pattern suggests the halving could lead to potential significant [price] appreciation before and after the halving event,” Martens said.Bitcoin’s recent rallyOn Wednesday, Bitcoin surpassed the $61,000 mark, extending a rally in the token into a fifth consecutive day.By 11:26 ET (16:26 GMT), the price of Bitcoin had risen by 7.9% to $61,251.2, placing the cryptocurrency within touching distance of an all-time high of more than $68,000 reached in 2021. It has now soared by more than 16% in the past seven days.Along with the anticipation surrounding the upcoming halving, Bitcoin’s stellar performance this year has been spurred on by a recent decision from U.S. authorities to give the green light to exchange-traded funds (ETFs) that directly track the price of the cryptocurrency. The approvals have drawn a slew of institutional capital into Bitcoin. “Overall, we continue to like the set-up for [Bitcoin]/Crypto and expect considerable upside in [calendar year 2024] with [Bitcoin] exiting the year at [around] $85K+ levels driven by ETF inflows outpacing available supply on exchanges,” analysts at Compass Point wrote in a note.They added that possible Federal Reserve interest rate cuts in the second half of 2024 could encourage risk-taking among retail investors. Retail trading volumes have remained relatively muted despite the ETF approvals, in an indication that faith in the crypto industry may have been dented by a string of high-profile scandals and bankruptcies.An announcement from MicroStrategy Incorporated (NASDAQ:MSTR), the biggest corporate holder of Bitcoin, that it had recently purchased 3,000 tokens for about $155 million has also supported the token.Meanwhile, a report from digital asset manager Coinshares showed that crypto investment products saw a fourth straight week of capital inflows. Digital asset investment products were bolstered by inflows of $598 million in the week to Feb. 23, according to the report.Bitcoin ETFs commanded the lion’s share of the inflows. Bitcoin products registered $570 million of inflows, with BlackRock’s iShares Bitcoin Trust notching $543.5 million of inflows. This largely offset sharp outflows from Grayscale Bitcoin Trust, as it grappled with a slew of new entrants to the Bitcoin ETF space.Ambar Warrick contributed to this report. More

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    in Cryptocurrency

    Bitcoin rally continues: Price climbs above $60k for the first time since November 2021

    There has been a strong rally in the cryptocurrency this week, driven by strong inflows into US-based ETFs, which has been noted by various analysts.As of 10:34 am ET, bitcoin is up more than 7% at $61,170. So far this week, the premier cryptocurrency is up 17%, adding to its more than 44% gain so far in 2024. In the past 12 months, BTC has climbed 160%. Traders have flocked to the cryptocurrency ahead of the halving event expected in April. However, the rally has not been limited to BTC, with analysts noting this week that their digital asset portfolio is outperforming Bitcoin for the first time.”We believe this is quite significant as a signal to understand the crypto bull market is getting wider,” wrote Bernstein in a research note. More

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    in Economy

    Africa’s debt to stay above pre-pandemic levels through 2025, UN official says

    HARARE (Reuters) – Africa’s public debt will stay above pre-pandemic levels in 2024 and 2025, with many countries still at risk of falling into debt distress as they continue to struggle to service international loans, a U.N. official said on Wednesday. Addressing a United Nations Commission for Africa (UNECA) conference in Victoria Falls, the agency’s macroeconomics and governance director Adam Elhiraika said eight countries were in debt distress, while 13 were “expected to be at risk of debt distress”.Africa has been hit by repeated economic shocks since 2020, from the COVID-19 pandemic to Russia’s invasion of Ukraine and rising U.S. interest rates, putting cash-strapped, debt-laden governments in a political and fiscal bind.”Debt will (stay) above the pre-pandemic level. This is huge,” Elhiraika said, adding that the continent’s debt-to-GDP ratio was 62.5% at the end of 2022.This ratio doubled to 57% in the decade to 2020 and could rise 10 percentage points in the next five years if Africa’s fiscal trajectory does not change, according to a recent International Monetary Fund (IMF) report.”There is need for African countries to work with international partners to address debt distress,” Elhiraika said.Africa’s fiscal deficit deteriorated to 4.6% of GDP last year, Elhiraika said, without citing previous years’ figures, and is set to widen further to 5% in 2024. Many African governments are having to slash spending, while interest payments are growing faster. Zimbabwe Finance Minister Mthuli Ncube called for a rethink of the global financial system.”Access to finance for Africa must be made cheaper and easier. Hence, there is a need to re-look at the international financial architecture to ensure that it is fit for purpose,” Ncube said, addressing the conference.Zambia became the first African nation to default on its debt in late 2020, during the COVID-19 pandemic. Ghana followed in 2022, while Ethiopia became the latest last December. More

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    in Cryptocurrency

    Bitcoin Rises Over $60K

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    in Economy

    Venezuela’s government doubles down on inflation control ahead of election

    CARACAS (Reuters) – Venezuela’s government is intensifying its efforts to lower inflation ahead of a presidential election this year, keeping the bolivar-dollar exchange rate steady and weighing how to manage spending without stoking consumer prices, public-sector sources and analysts said.The oil-rich South American country, whose government is under U.S. sanctions for repressing political opposition and alleged criminal activity, has faced a long-running economic crisis marked by chronic shortages, a plunging currency and hyperinflation. Consumer prices rose by nearly 190% in 2023, one of the highest readings in the world, as the costs of basic goods continued to increase and the local currency fell sharply against the dollar.Price increases were down to 107% on a year-on-year basis through January. Monthly price rises have been in the single digits for the last 10 months as President Nicolas Maduro’s socialist government has held to an orthodox anti-inflation approach that began in 2021, injecting dollars and heavily restricting credit and spending.”Venezuela will consolidate its definitive victory this year against inflation, returning, with the help of God, to annual inflation of two digits,” Maduro told lawmakers in January. Annual inflation has not been under 100% since 2014.”The objective is low inflation and holding the exchange rate. That is the policy,” one source close to the government said on condition of anonymity.So far this year the exchange rate has been held at 36 bolivars to the dollar, after depreciating by 38% in 2023.Delcy Rodriguez, the country’s vice president and finance minister, asks the central bank for weekly price reports, a source with knowledge of the matter said.”What has been done so far should be maintained so as not to return to complicated scenarios,” said Francisco Torrealba, a government-allied lawmaker, alluding to efforts to avoid sharp fluctuations in the exchange rate.The central bank and U.S. oil giant Chevron Corp (NYSE:CVX) sold some $4.2 billion in dollars via local banks last year, according to analyst firm Sintesis Financiera, a figure that is 17% higher compared to 2022.Chevron operates in Venezuela with special authorization from Washington, bringing back some of its export earnings to exchange for bolivars so it can pay local expenses.Analysts predict dollar sales will grow this year.Neither the central bank nor the communications ministry responded to requests for comment.SPENDING DILEMMAAfter the U.S. relaxed oil sanctions late last year on the back of an election deal with the opposition, Maduro’s government predicted a 27% increase in income from state oil company PDVSA and analysts said the government would probably use the earnings to boost social spending with an eye to attracting voters.Maduro’s administration has done an abrupt about-face on rapprochement with Washington and his domestic opponents in recent weeks and the U.S. has said oil sanctions roll-backs will expire in April unless the opposition’s candidate is allowed to compete in this year’s presidential election.The reversal will hit the government’s spending ability, presenting the dilemma of how to attract voters without stoking inflation.”Within the government the main thing is inflation, but it needs to create a feeling of well-being for the elections,” requiring spending, a source close to the administration said when asked about possible public-sector pay increases.Public employees earn an average of $40 a month and have not gotten raises since 2022, after receiving them sometimes as often as three times per year. Maduro’s government has instead given out bonuses.”The government will maintain the bonus strategy and may give a raise in May, though it won’t be very large,” predicted Asdrubal Oliveros, an economist and director of consulting firm Ecoanalitica. “The elections will determine spending.”Apart from bonuses, the government may distribute more food baskets because they are less costly than raises and do not impact prices as much, said Tamara Herrera, the head of Sintesis Financiera.”If the election is competitive there will be more spending, but if it is not competitive, spending will be restricted and the money will be used for (regional and legislative) elections in 2025,” said Luis Vicente Leon of analyst firm Datanalisis. More

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    in Economy

    China’s Premier Li urges stronger economic, trade ties with US

    “Strengthening economic and trade cooperation is a win-win situation for both countries,” Li told the delegation led by Chamber of Commerce chief Suzanne Clark.”Seeking decoupling and building ‘small yards with high walls’ do not align with the fundamental interests of both sides,” he added.   Li said U.S. companies were welcome to continue investing in China and that barriers were not in the fundamental interests of both sides.Clark is leading a delegation of former U.S. government officials to Beijing this week, the group has said.The visit comes as the United States and China gradually resume engagements after the two economic superpowers’ most tense relations in years, at loggerheads over the future of democratically ruled Taiwan, territorial claims in the South China Sea and trade policies. Ties are still recovering after the United States downed an alleged Chinese spy balloon a year ago. More

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    in Cryptocurrency

    Bitcoin eyes $60,000, ‘FOMO’ stirs biggest monthly rally since late 2020

    By Amanda CooperLONDON (Reuters) – Bitcoin surged for a fifth day on Wednesday to near $60,000, buoyed by flows into new U.S. spot bitcoin exchange traded products that have driven it up nearly 40% in February, which would mark its largest monthly rally since December 2020. Bitcoin was last up 4.5% at $59,244, its highest since November 2021.Traders have poured into bitcoin ahead of April’s halving event – a process designed to slow the release of the cryptocurrency. In addition, the prospect of the Federal Reserve delivering a series of rate cuts this year has fed investor appetite for higher-yielding or more volatile assets.”Bitcoin is being driven by the support of consistent inflows into the new spot ETFs and outlook for April’s halving event and June’s Fed interest rate cuts,” Ben Laidler, global markets strategist at retail investment platform eToro, said.The value of all the bitcoin in circulation has topped $2 trillion this month for the first time in two years, according to crypto platform CoinGecko, while the price of the token itself has doubled in just four months.The bigger bitcoin exchange-traded funds (ETFs) have seen a definite pickup in interest this week.The three most popular, run by Grayscale, Fidelity and BlackRock (NYSE:BLK), have seen trading volumes surge.On Monday and Tuesday, around 110 million shares in the biggest three changed hands, about 51% of the 215 million shares traded in the market’s most valuable companies – Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Nvidia (NASDAQ:NVDA), according to LSEG data.Three weeks ago, this percentage was closer to 15%.”Essentially, we’re seeing the ETF effect ahead of schedule. Inflows into them stepped up quickly last week and have been sustained, and we think it’s reflective of advisors getting out there very quickly to start selling the ETFs to clients,” Joseph Edwards, head of research at Enigma Securities, said. LSEG data showed flows into the 10 largest spot bitcoin ETFs brought in flows of $420 million on Tuesday alone, the most in almost two weeks.Crypto investor and software firm MicroStrategy earlier this week disclosed it had recently bought about 3,000 bitcoins for $155 million, while social media platform Reddit also said in a regulatory filing it had bought small amounts of bitcoin and ether.Meanwhile, the world’s second biggest crypto currency ether,, which underpins the Ethereum blockchain network, rose 2.2% to $3,320, having hit another two-year high earlier in the day. The price has risen 47% in February, the biggest monthly gain since a 70% rally in July 2022.Some investors are hoping U.S. regulators will approve applications for ETFs based on spot ether. Enigma Securities’ Edwards said the run higher felt reasonably steady. “There certainly isn’t a manic feeling to who’s buying and why – ether gaining against the field also speaks to a more measured environment – but there’s at least a little FOMO (fear of missing out) going on right now,” he said. (This story has been corrected to say November, not December, in paragraph 2) More