The price of Bitcoin (BTC) today soared past the $65,000 mark for the first time since May 6. The climb came after U.S. data showed that the monthly pace of inflation was softer than expected in April. This development could spur the Fed’s willingness to begin rate cuts.
Meanwhile, BitQuant, who correctly called the Bitcoin lifetime high before the April halving event, sees Bitcoin hitting $95,000 “in just one move.”
Bitcoin Price Leaps Over $65K
Bitcoin rebounded strongly immediately after the U.S. Bureau of Labor Statistics released its new Consumer Price Index (CPI). The CPI report comes after a slew of higher-than-expected inflation readings, dampening traders’ hopes about when rate cuts might commence this year.
The BTC price now hovers at $66,034, CoinGecko data shows. That’s a 7.29% increase over the last 24-hour trading period. And Ether (ETH), the industry’s second-biggest crypto asset by market cap, was changing hands for $3,007.94 — a 3.9% gain compared to yesterday’s. Over the same period, Solana (SOL) jumped 7.6% to around $154.91.
Bitcoin set a new all-time high in March, nearing breaching the $74,000 level. This was a widely celebrated Bitcoin bull rally that some said showed unique strength despite coming before the long-awaited April halving. But the premier crypto soon fluttered downward, a trend attributed to headwinds ranging from depressing U.S. economic metrics to growing political unrest in the Middle East.
Was the halving priced in, or is a new all-time high for this cycle on the horizon? Analyst BitQuant believes a new peak is imminent.
Bitcoin’s Looming Explosive Price Move To $95,000
Bitcoin is gearing up to continue upward and should advance to an eye-popping $95,000. As per BitQuant, such sky-high BTC price heights are a matter of time.
“$95K will be achieved in just one move, and that is quite obvious,” he postulated on X. “Will that move start today, tomorrow, or the day after tomorrow? I don’t think anyone knows.”
BitQuant was reacting to commentary from fellow crypto analyst Mikybull Crypto, who noted a “cup and handle” formation on Bitcoin’s weekly chart.
The setup comprises a consolidation phase following a run-up, a correction, and an ensuing move higher. In Mikybull Crypto’s view, this results in an astronomical flight to new highs. “The breakout will be explosive and will send it to a cycle top,” he observed in an X post.
Meanwhile, the nearly a dozen new U.S. spot Bitcoin ETFs have seen billions of dollars in inflows so far, which has not only helped re-legitimize crypto given the involvement of trustworthy Wall Street titans such as BlackRock, Fidelity, and JPMorgan but also put considerable buying pressure on Bitcoin.
DISCLAIMER The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.
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Gold, silver see gains following mixed U.S. inflation data
Gold, silver see gains following mixed U.S. inflation data teaser image
Gold and silver prices are firmer in midday U.S. trading Tuesday following a U.S. inflation report that saw hot headline numbers, but the internals and revisions to the report were cooler. June gold was last up $10.70 at $2,353.70. July silver was last up $0.157 at $28.60.
Tuesday morning’s U.S. producer price index for April came in hot, at up 0.5%, month-on-month, versus expectations for up 0.3%. The “core” PPI rate (excluding food and energy) was also up 0.5% in April versus expectations for up only 0.2%. However, the March PPI number was revised to down to minus 0.1% from the originally reported up 0.2%. The April PPI report would have fallen squarely into the camp of the U.S. monetary policy hawks, who want to see the Federal Reserve hold off on any interest rate cuts. However, the big downward revision to the March PPI apparently mitigated the larger-than-expected jump in the April PPI.
The consumer price index comes on Wednesday. CPI is seen up 0.4%, compared to the March report showing a rise of 0.4%. The annual CPI April reading is seen up 3.6% compared to up 3.8% in the March report.
Federal Reserve Chairman Jerome Powell today spoke in Amsterdam to a banking group. Powell said inflation has been higher for longer than the Fed had expected and it looks like it will take longer for the Fed to become confident that inflation is coming down to 2% annually. He said the Fed will keep its restrictive monetary policy in place until inflation recedes to the Fed’s satisfaction. Powell’s comments came as no surprise to the marketplace and markets showed little reaction.
Asian and European stock indexes were mixed to weaker overnight. U.S. stock indexes are mixed near midday.
The key outside markets today see the U.S. dollar index weaker. Nymex crude oil prices are lower and trading around $77.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is fetching around 4.5%.
Technically, June gold futures bulls have the firm overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $2,400.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,300.00. First resistance is seen at this week’s high of $2,370.80 and then at last week’s high of $2,385.30. First support is seen at this week’s low of $2,337.60 and then at $2,330.00. Wyckoff's Market Rating: 7.0.
July silver futures bulls have the firm overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at last week’s high of $29.00. The next downside price objective for the bears is closing prices below solid support at $27.00. First resistance is seen at last week’s high of $29.00 and then at $29.25. Next support is seen at this week’s low of $28.185 and then at $28.00. Wyckoff's Market Rating: 7.0
July N.Y. copper closed up 1,525 points at 491.85 cents today. Prices closed near mid-range and hit another contract high. The copper bulls have the strong overall near-term technical advantage. Prices are in a three-month-old uptrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 515.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 460.00 cents. First resistance is seen at today’s contract high of 502.60 cents and then at 505.00 cents. First support is seen at 485.00 cents and then at 480.00 cents. Wyckoff's Market Rating:
Amidst a broader crypto market pullback spearheaded by Bitcoin’s wavering momentum, Cardano (ADA) is showcasing signs of vulnerability, sparking apprehension among investors.
Since reaching a peak of $0.80 in mid-March, ADA has experienced a significant decline of approximately 45%, sliding into a consolidation phase over the past four weeks. Despite steadfast support from bulls, hovering around the $0.44-$0.45 mark, indications suggest the potential for further downward movement.
Market sentiment was notably stirred by a cryptic tweet from seasoned analyst Peter Brandt on Sunday. While refraining from commenting, Brandt shared a chart depicting ADA’s previous support breach in late April, following a prolonged period above the $0.56 support level.
Brandt’s analysis highlighted looming selling pressure, with ADA now teetering near critical support thresholds at around $0.45. A breach below the latter could signal a deeper descent, echoing Brandt’s cautionary tone.
Echoing Brandt’s concerns, other analysts pointed out bearish indicators, with one trader citing a potential breakdown if ADA fails to rectify a bearish RSI divergence and reclaim key levels.
Conversely, some maintain an optimistic outlook, drawing parallels between Cardano’s trajectory and that of Ethereum in previous cycles. Analyst Dan Gambardello, commenting on Saturday, drew comparisons between Cardano’s current downturn and Ethereum’s past performance, suggesting a cyclical pattern that could lead to future resurgence.
Analyst Javon Marks also expressed bullish sentiments, buoyed by ADA’s recent price surge. Marks projected potential gains of up to 15X, underlining ADA’s substantial progress since breaking through resistance levels.
“Prices of ADA have demonstrated significant advancement, surging by approximately +222% towards its initial target at $2.7709,” Marks told his 38,000 followers on X.
He further speculated that the recent pullback might fortify ADA’s position for further upward movement. Marks elaborated on the potential: “With this breakout holding, another +462% upside could be in the cards to reach this target. However, based on the precedent set by previous breakouts, prices could potentially soar even higher. The $7.80 level could become a reality, marking an over 1,500% increase from current levels.”
Similarly, analyst Ali Martinz recently offered a historical perspective, drawing parallels between Cardano’s current trajectory and past bullish cycles. Martinz’s analysis suggested that ADA’s recent price correction may be a precursor to a parabolic bull run, hinting at substantial upside potential.
ADA was trading at $0.43 at press time, reflecting a 2.32% drop over the past 24 hours.
DISCLAIMER The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.
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How To Excel At Customer Acquisition Through Content Creation With Markethive
Acquiring customers is vital for a business's success, serving as the main driver for marketing efforts and overall business expansion. However, the process has become fiercely competitive and increasingly costly, with the customer acquisition cost (CAC) rising by over 60% in the last six years. This increase in CAC is due to various factors, such as increased competition, rising advertising costs, and changing consumer behavior, making it more critical than ever for businesses to invest in effective customer acquisition strategies like content marketing.
Navigating the crowded online landscape can be a significant hurdle as businesses flock to establish a presence through various digital platforms. However, these channels present a tremendous chance to stand out and acquire new customers through compelling content. By creating informative and engaging content, businesses can cut through the noise and take control of their customer acquisition strategies, empowering them to shape their own success.
It’s exceptional, customer-centric, search-engine-friendly content that resonates with audiences and drives conversions. Search-engine-friendly content refers to content that is optimized to rank high in search engine results pages (SERPs). This involves using relevant keywords that your target audience will likely search for, creating high-quality backlinks from reputable websites, and ensuring the content is easy to read and navigate, with clear headings, subheadings, bullet points, and short paragraphs.
By creating search-engine-friendly content, businesses can increase their visibility and attract organic traffic. While most companies acknowledge the significance of digital content, it's surprising that only a few prioritize crafting high-performing content that delivers results. Instead, they churn out subpar material that lacks impact, leaving a gap in the market for those who do prioritize it.
The Link Between Customer Acquisition and Compelling Content
Today's discerning consumers are highly selective when choosing brands and making buying decisions, much like forward-thinking businesses that capitalize on digital platforms to identify and win over new customers. The significance of content in attracting customers stems from its ability to establish trust.
More than outdated marketing strategies, including catchy slogans and aggressive sales pitches, are needed to grab consumers' attention or sway them; today, they seek out brands that demonstrate reliability and credibility. Studies have shown that 81% of consumers prioritize trust when making purchasing decisions, ranking it second only to the quality and value of the product itself.
By offering informative and insightful thought leadership content, which refers to content that positions the brand as an industry expert and provides unique perspectives on industry trends and issues, businesses cannot only attract but also earn the trust of potential customers. This reassures them of the brand's credibility and reliability, instilling confidence in the effectiveness of content marketing as a customer acquisition strategy.
To foster the trust that consumers hold in such high esteem, they turn to one key source: your content. By developing and disseminating consistent, high-quality content, you cultivate a reputation for expertise, infuse your brand with a distinct persona, and offer tangible benefits that assure consumers of your brand's capability to meet their needs.
But how do you know if your content is effective? Measuring the success of your content marketing efforts is crucial. You can track metrics such as website traffic, engagement (such as comments, shares, and likes), and conversions (such as newsletter sign-ups, downloads, or purchases) to gauge the impact of your content.
Unlocking Customer Acquisition: The Surprising Power of Content Over Advertising
A Common Misconception Many individuals mistakenly believe that marketing revolves solely around advertising. However, those intrusive messages and images that disrupt our online experiences are often more of a nuisance than an effective means of engagement. For most, attempting to read an informative article only to be bombarded with irrelevant pop-up ads is annoying and distracting. It's no secret that these tactics are largely ineffective, yet they come to mind when most people think of marketing.
The term' content marketing' describes content that genuinely assists individuals. This is the essence of effective marketing, and the primary objective of marketing is to attract new customers. Content marketing is effective because it is created by and for people. It is designed to educate, share insights, and inspire progress. Unlike traditional advertising, which often interrupts and annoys consumers, content marketing provides value and builds trust. It’s more successful in acquiring new customers because it focuses on providing help rather than pushing sales.
Optimize Your Online Presence Across Multiple Channels
Don’t Rely On AI To improve your search engine ranking, focus on creating content that directly addresses the search intent behind the keywords and questions your audience poses. Avoid depending solely on AI-generated content. Additionally, content that performs well in search engines will likely be effective in email and social media.
The critical insight from AI-driven content marketing is that it should be leveraged as a supplementary resource rather than a substitute for human creatives. While AI platforms like GPT are increasingly adept at producing content that mirrors human tone and style, they cannot replicate the emotional understanding that underlies effective content marketing.
For example, AI can help with content ideation, keyword research, and even content creation, but it’s the human touch that genuinely connects with the audience. Ultimately, the capacity for empathy sets human writers apart and drives successful content marketing strategies.
Content marketing is essentially centered around helping people. By offering valuable information and addressing users' concerns, content helps users even before purchasing. This approach aims to establish a strong connection with the audience, encouraging them to learn more about your brand and potentially become customers who see the benefits of your products or services in enhancing their lives.
In an era when people are bombarded with information, building a connection with your audience by showing you genuinely grasp their needs is crucial for differentiating yourself from the competition. Advanced AI-powered content marketing tools can analyze the vast expanse of existing content and produce remarkably sophisticated, eerily human-like original content inspired by what's already available.
However, these tools lack a deep understanding of your target audience and the subtleties required to craft content that truly speaks to them. They're also unable to grasp your brand's distinctive character or replicate the unique voice and tone that sets you apart. These personal touches still require a human touch, emphasizing the irreplaceable value of human creativity and understanding in content creation. Your role in this process is invaluable and cannot be replicated by AI, making you an integral and irreplaceable part of the content creation process.
Content + Paid Advertising As explained above, AI-generated content may fall short of achieving the objective businesses want through content marketing, but it’s becoming increasingly prevalent. It’s indeed getting harder, not easier, to acquire new customers through organic means. One way to supplement organic content acquisition is through paid.
Utilizing paid content marketing allows you to promote your existing content to your target audience in the online platforms they frequent. This can include strategies such as sponsored social media posts, pay-per-click (PPC) advertising, and native advertising. It is important to note that paid content marketing is most effective when combined with solid content marketing strategies already in place.
The authenticity of content marketing, once a beacon of uniqueness, has transformed. Content marketing values refer to the principles and beliefs that guide content marketing strategies, such as providing value to the audience, being transparent and honest, and focusing on long-term relationships rather than short-term sales. Integrating a touch of paid advertising doesn't mean compromising your commitment to these values. Instead, it adapts to the shifting external landscape that has altered the playing field.
The landscape of social media platforms like Facebook, LinkedIn, and Google has shifted, posing challenges for brands to reach their desired audience without utilizing paid advertising. Changes in platform policies, such as Facebook's algorithm prioritizing content from friends and family over brand content, and algorithms, such as Google's search algorithm that ranks content based on relevance and quality, have made engaging with the same audience through organic social media content increasingly challenging.
As the internet swells with information, a phenomenon known as Content Shock comes into play. The notion suggests that the quantity of content will continue to rise, posing challenges in capturing consumers' attention amidst their limited time and energy. In response, many companies are incorporating paid advertising into their content marketing approaches to cut through the noise and reach their desired audience.
While content marketing isn't solely dependent on paid advertising, incorporating paid strategies into your overall approach can be a valuable addition for some individuals.
Content + Banner Ads Similar parallels can be drawn with banner advertising. When the first banner ad debuted in 1994, it boasted an impressive 44% click-through rate. Fast forward to today, and that rate has plummeted to a mere fraction of 1%, as internet users have skyrocketed from a mere 30 million to a staggering 5.35 billion.
The internet's content has experienced exponential growth. To put it into perspective, the number of Google searches conducted every minute surpasses the entire online population of 1994, while the number of emails sent in a single minute is ten times that of the 1994 internet user base.
Therefore, the quantity of banner advertisements displayed to various online users has increased. Consumers have become weary of banner ads over the past three decades, ranking them as the second least trusted advertising medium in 2021. Nonetheless, banner display advertising remains the second most heavily funded digital format in the United States.
Banner ad spending reached $58 billion in 2022, representing more than 30% of digital advertising expenditures in the U.S., which is only 10% lower than search ads, which are the leading format. Forecasts suggest that this spending will increase consistently and surpass $78 billion by 2026.
Despite the underwhelming returns, marketers funnel their advertising funds into digital formats without hesitation. I think banner ads still have a place in this modern marketing era, and if we could combine content marketing with banner ads to bring more traffic to our content, that’s a win/win in my book.
Approximately 53% of content creators utilize advertisements to enhance their inbound efforts. They have successfully engaged with quality content by strategically reaching a relevant audience through search and social ads. The key lies in the content itself rather than the advertising format. When crafted into compelling content, ads enhance, rather than hinder, a robust inbound marketing approach.
The digital advertising landscape looked vastly different a decade ago. The majority of online ads were inadequate and annoying. The most advanced format available was the display ad. Unfortunately, most advertisements were intrusive and failed to target their intended audience. Interestingly, research shows that when content is boosted through banner ads, its click-through rate surges by a staggering 800%.
Numerous ineffective advertisements still exist, yet a different type is emerging—ones that could bring value to individuals. These advertisements assist consumers in discovering desired information, ads that amplify great content, and present it to those interested in the topic. Essentially, these ads can be considered inbound in nature.
Maximizing Returns with Content Marketing
Content marketing's proven effectiveness is the primary driver behind leveraging it for customer acquisition. A well-known marketing statistic reveals that leads generated through content marketing come at a significantly lower cost, with a staggering 62% reduction compared to traditional marketing approaches. This is primarily due to content marketing's ability to attract and convert new customers efficiently at a lower expense.
How To Excel In Customer Acquisition Through Content
To acquire customers through content, you must synchronize your content with the stages of the buyer's journey. While all website traffic is beneficial, particularly for new businesses aiming to enhance visibility, a deliberate approach is required for effective customer acquisition through content. This involves aligning your content with the phases of your buyer's journey.
As prospects navigate through the purchasing process, the type of content that resonates with them shifts. Initially, individuals who land on your website after conducting their first online search for a product or service are probably seeking educational resources to understand the challenges they are experiencing better.
As customers progress through their purchasing decision, they may require additional assurance that your brand is the best fit, and a detailed whitepaper or comprehensive case study can provide the necessary persuasion. The following visual aid can help you strategize the most effective types of content to allocate to each stage of the buyer's journey.
As you tailor your content to resonate with customers at each stage of their purchasing path, keep two key objectives in mind: provide potential buyers with the necessary information based on their current stage and incorporate a Call To Action (CTA) or another incentive to guide them to the next stage of the buyer journey.
Elevate Your Content Marketing with a Strong Blog Presence
A blog is the cornerstone of a successful content marketing strategy. While it's common knowledge that having a blog is essential, simply producing content, no matter how industry-relevant, and waiting for results is not a viable strategy.
To engage your target audience, it's essential to maintain a cohesive and customer-centric tone in your blog posts. Be deliberate and purposeful in your approach. Utilize categories to structure your content to match your content objectives, customer search intent, and buyer journey.
Begin by conducting SEO keyword research and evaluating your current content. From there, establish a strong foundation for your blog by incorporating content optimization strategies and paying careful attention to the technical aspects contributing to its performance. This includes ensuring your blog is prominently featured on your homepage and main navigation, utilizing article page templates, setting up proper URLs, and other essential steps.
At the heart of a successful content marketing approach lies a website with a blog, which has outperformed all other marketing methods. Moreover, studies have shown that blog-equipped websites boast an impressive 434% increase in search engine-indexed pages, resulting in a staggering six-fold rise in revenue.
Valuable gated content, commonly called lead magnets, collects visitor details by providing them with something of great worth in exchange. Gated content takes various shapes, yet it consistently delivers a distinctive and superior offering compared to the content available for free to your visitors.
For instance, if your blog delves into the significance of content audits, consider offering a comprehensive downloadable resource that provides a step-by-step walkthrough of the process. Popular types of gated content that are widely utilized and proven effective include ebooks, whitepapers, checklists, templates, and instructional videos.
Produce Engaging Videos
Video has become crucial in digital marketing as the most sought-after form of online content. Most businesses (86%) have incorporated video into their marketing plans. Furthermore, industry experts forecast that a staggering 82% of internet traffic will be driven by video content by next year.
Explore innovative video marketing strategies, such as documenting daily experiences through vlogs, hosting virtual events and webinars in real time, and showcasing customer testimonials through user-generated videos.
Markethive is poised to revolutionize these formats with its comprehensive video platform, virtual conference spaces, e-commerce storefronts, and broadcasting tools. Moreover, its decentralized blockchain infrastructure, spanning multiple cloud systems, offers a distinct advantage over traditional centralized cloud services like AWS and Cloudflare.
Showcasing Social Proof
Are you someone who reads reviews and testimonials before making a purchase decision? Well, you're not alone! Studies reveal that 88% of consumers place as much faith in online reviews as in personal referrals from friends or family. They typically peruse multiple reviews before finalizing a buying decision.
Showcasing social proof in your content can boost your customer acquisition potential. Practical strategies for achieving this include:
Interspersing customer testimonials and rave reviews throughout your online platform or website.
Showcasing in-depth success stories that highlight your achievements with previous customers.
Featuring authentic content created by satisfied users, such as online reviews, product photos, and video testimonials. (User-generated content)
Building trust with potential buyers is crucial, and social proof helps achieve this by providing tangible evidence that you’ll deliver on your promises. Many customers rely heavily on social proof to make a purchasing decision. By including social proof material in your customer acquisition plan, you can significantly boost the chances of turning leads into paying customers, ultimately driving revenue growth.
Markethive’s Role In Customer Acquisition
Markethive, the blockchain-driven social market broadcasting network, is revolutionizing the media landscape. Its unique iterations, integrations, and upgrades will make it the ultimate tool for customer acquisition for large companies, small businesses, and solo entrepreneurs seeking to craft and disseminate compelling content that resonates with their target audience. This will include press releases and sponsored articles.
In contrast to traditional social media platforms, you retain ownership of your content, assets, and resources. On centralized social media platforms, the content you share becomes the property of the platform itself. They may redistribute it for profit without informing you or seeking your consent despite your view that your content is proprietary.
Watch as this behemoth of all things digital media unfolds and grows, dominating various aspects of marketing and advertising, including customer acquisition, social media, inbound strategies, video advertising, content creation, email campaigns, banner display, and more. Equipped with customized storefronts for individual businesses, SEO optimization, and its crypto, Hivecoin, the currency of Markethive, it is a complete ecosystem tailored for entrepreneurs.
Editor and Chief Markethive: Deb Williams. (Australia) I thrive on progress and champion freedom of speech. I embrace "Change" with a passion, and my purpose in life is to enlighten people to accept and move forward with enthusiasm. Find me at my Markethive Profile Page | My Twitter Account | and my LinkedIn Profile.
Gold futures fill gap with profit-taking, dropping $30 today
As of 5:15 PM ET, gold futures based on the most active June 2024 contract traded $32 lower, settling at $2,343. Today's price decline effectively filled the gap created between last Thursday's closing price and Friday's opening price. On Thursday, May 9, gold futures opened at $2,316.50 and closed at $2,340.30. On Friday, gold opened at $2,353.50 and closed just below $2,375, creating a price gap.
While Thursday's intraday high of $2,354.20 was above Friday's intraday low of $2,352, a true gap existed between the real bodies of those days' Japanese candlesticks. A candlestick's body represents the open and close, so last week saw a price void between Thursday's $2,340.30 close and Friday's $2,353.50 open. A gap "fills" when the price revisits the pre-gap level. It must be noted that the chart used for this analysis is based upon the closing settlement price in New York.
According to Investopedia, "In volatile markets, traders can benefit from large jumps in asset prices if they can be turned into opportunities…" Gaps offer enterprising traders’ chances to interpret and exploit price movements for profit.
Today's decline essentially filled last week's gap as market participants likely took profits ahead of Wednesday's April Consumer Price Index (CPI) report, awaiting further inflation data.
Piero Cingari of Benzinga notes, "Analysts foresee a drop in both the overall Consumer Price Index (CPI) and its 'core' component…" Wall Street economists anticipate the headline annual inflation rate will decline from 3.5% in March to 3.4% in April. The yearly core inflation rate, excluding food and energy volatility, is expected to fall from 3.8% to 3.6% year-over-year, the lowest since April 2021.
If the actual figures come in above predictions, the Federal Reserve may implement fewer than the currently projected two rate cuts this year. Conversely, lower-than-forecast CPI data could prompt the Fed to cut rates before September, as two-thirds of economists surveyed by Reuters currently anticipate.
However, the Fed seeks evidence of a sustained trend, so unless subsequent months corroborate Wednesday's report, policymakers are unlikely to drastically alter their stance based on a single data point.
Dramatic' re-pricing across all financial assets coming as the Fed moves away from its 2% inflation target to this – Larry McDonald
Financial markets are about to witness one of the most epic migrations of capital in history as investors rush into hard assets, warned Larry McDonald, Founder of The Bear Traps Report and New York Times bestselling author of 'How to Listen when Markets Speak' and 'Colossal Failure of Common Sense.'
With the national debt approaching $35 trillion, there are only two ways out of the situation — defaults or printing more money, McDonald told Michelle Makori, Lead Anchor and Editor-in-Chief at Kitco News.
"The only way to get out of that kind of debt hole is if you keep inflation above interest rates. That's how you monetize the debt," McDonald said. "That is why [the Federal Reserve] needs a much higher inflation target. It'll [be] a slow, manageable default. But it's the only way out of this colossal debt hole."
In order to tame inflation back to 2%, the Fed needs to keep raising rates, but it can't do that without triggering a 2008-like financial crisis, McDonald pointed out.
"[Powell] should raise rates another 150 basis points. But if you push rates up from here, you will very quickly bring on a financial crisis much worse than Lehman," he said.
Fed will have to raise its 2% inflation target
The Fed will have to cut rates to avoid a banking collapse and a brutal recession. However, first, it must raise the no-longer-attainable 2% inflation target. "[The Fed] will start circulating the white papers and working with other central bankers worldwide to pitch this in a group setting," McDonald noted.
The inflation shift talk can start as soon as the Jackson Hole Economic Policy Symposium, which takes place yearly at the end of the summer, he added. "If you have a 35 trillion debt hole, you need interest rates below the inflation rate, where you are wiping out debt with inflation."
McDonald also weighed in on the state of the U.S. banking sector, warning of a massive M&A cycle coming. Watch the video above for details.
Move into hard assets
According to McDonald, the U.S. is in a world of persistent inflation, where all asset classes will see a "dramatic" re-pricing as capital flees from financial assets into hard assets.
"The moment [the Fed] tips its hand, this creates a really bullish scenario for hard assets," McDonald stated.
A commodity bull market will dominate the financial landscape, with several metals looking at significant upside. For McDonald's top commodity plays, watch the video above.
McDonald sees gold reaching $3,000-$3,500 an ounce in the next 12-18 months. But he is even more bullish on another precious metal, pointing to one ratio "screaming" to sell gold and buy this metal instead. For insights, watch the video above.
McDonald also shared his price outlooks for silver, platinum, oil, and natural gas. Watch the video above for price targets.
In a week marred by continued volatility, Bitcoin, the leading cryptocurrency, has struggled to regain its footing, prompting questions among investors about the possibility of a market bottom. Despite a bullish rejection around $56,900 last week, optimism was short-lived as Bitcoin’s on-chain activity plunged to historic lows.
On Saturday, crypto analytics firm Santiment highlighted this development, emphasizing how Bitcoin’s on-chain activity has dwindled significantly in the two months since its all-time high, signaling widespread fear and indecision among traders.
“Bitcoin’s onchain activity is approaching historic lows as traders have dramatically slowed transactions… This isn’t necessarily a sign of more BTC dips, but rather a signal of crowd fear and indecision,” the firm wrote.
Further insights from a YouTube analysis by the firm’s analysts underscored concerns about the funding rate and a shortage of significant short positions, indicative of a prevailing fear in the market.
“Traders really don’t know what to do, they’re kind of sitting on their hands and waiting for a big move in one direction at this point,” remarked analysts, reflecting the widespread indecision gripping the cryptocurrency market.
Additionally, attention was drawn to the number of holders, which has flattened out historically. According to the analysts, while non-empty wallets are being created daily, this metric’s lack of significant growth during market flatness is seen as a sign of fear and indecision. They noted that they are closely monitoring this trend, particularly if the number of holders starts to decline, which could signal panic selling among traders and potentially foreshadow price rebounds.
Technically, popular markets analyst Maximillian noted that while Bitcoin experienced significant fluctuations, it is now approaching the $61,000 support level, which could either provide momentum for further declines or mark a potential turnaround point. In the short term, he emphasized the importance of overcoming the resistance level of $62,000 for sustained upward movement.
On Saturday, analyst Gareth Soloway pointed out that Bitcoin is consolidating within a parallel channel, a common occurrence following substantial price surges. Soloway highlighted two potential scenarios: a bear case and a bull case, depending on Bitcoin’s behavior within this channel.
In his bear case, Soloway cautioned that a downturn could be imminent if Bitcoin breaches the $57,500 support level and fails to recover swiftly. This could lead to a decline from $52,000 to $49,000, mainly if there’s a broader selloff in the stock market.
Conversely, in the bull case, Soloway emphasized the importance of Bitcoin maintaining its position within the parallel channel to sustain bullish momentum. He characterized the current consolidation phase as “bullish consolidation,” suggesting it sets a positive foundation for future price movements. If Bitcoin breaks above the upper boundary of the parallel channel, it could signal a continuation of the uptrend, potentially surpassing previous all-time highs.
Bitcoin was trading at $60,994 at press time, reflecting a 0.14% surge over the past 24 hours. According to CoinMarketCap data, the price has dropped by 3.50% over the past week.
DISCLAIMER: None Of The Information You Read On ZyCrypto Should Be Regarded As Investment Advice. Cryptocurrencies Are Highly Volatile, Conduct Your Own Research Before Making Any Investment Decisions.
** Loans, secure funding for business projects in the USA and around the world. Learn more about USA & International Financing at Commercial Funding International. **
Gold Price News: Gold Rises After US Jobless Figures
Prices rose as high as $2,338 an ounce on Thursday, compared with around $2,310 an ounce in late deals on Wednesday.
US initial jobless claims figures released Thursday came in at 231,000 in the week to May 4th, well above market expectations of 210,000. A higher-than-expected rise in the number of people seeking unemployment benefits strengthens the call on the US Fed to slash interest rates to stimulate the economy.
Recent bets among interest rate traders have begun to coalesce around September as the most likely start for US interest rate cuts, with a majority expecting no change to monetary policy at upcoming meetings in June and July.
Lower interest rates tend to support gold prices because they weaken the US dollar, making gold cheaper for buyers in other currencies, as well as reducing the opportunity cost of holding non-yield-bearing assets.
Elsewhere, the World Gold Council issued a report Wednesday that highlighted a number of factors behind the new all-time high prices seen in April:
Gold Market Commentary: Higher-for-longer: Inflation not growth | World Gold Council
The industry group cited a positive flip in North American gold ETF flows which combined with strong Asian ETFs. Moreover, increased geopolitical risk, positioning in the Shanghai futures exchange and strong central bank buying all contributed to the higher prices in March and April, it said.
Looking ahead, the markets will be watching out for several speeches by US Fed officials on Friday for clues on the central bank’s view on the outlook for interest rates, especially in light of the recent surprise rise in jobless claims numbers.
Gold investors watching inflation data next week to see if this new momentum will last
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Gold investors watching inflation data next week to see if this new momentum will last teaser image
After two weeks of consolidation, gold is attracting some new bullish attention after holding initial support at around $2,300 an ounce, according to some analysts.
Bouncing off its lows at the start of the week, gold is looking to end Friday near a two-week high. June gold futures last traded at $2,375.40 an ounce, up nearly 3% from last Friday’s close.
At the same time, silver has managed to push back above $28 an ounce after holding critical support levels. May silver futures last traded at $28,310 an ounce, up a solid 6% from last Friday.
Some analysts note that gold is benefiting from fluid interest rate expectations following disappointing economic data. Thursday, a jump in weekly jobless claims pointed to growing slack in the U.S. labor market and brought renewed focus to last week’s disappointing nonfarm payrolls report.
Friday, the Univerisity of Michigan’s preliminary consumer sentiment survey showed optimism falling to a five-month low, while inflation expectations rose to a nearly two-year high.
Ole Hansen, Head of Commodity Strategy at Saxo Bank, said that it is not surprising that gold is seeing a renewed push to the upside as the market’s bullish conviction has not been tested during the two-week consolidation period.
“Now we see a technical break to the upside, supported by signs the U.S. labor market is cooling. With inflation being controlled, the expected number of U.S. rate cuts has been lifted to two from one,” he said.
However, some analysts warn that although markets are now pricing in two rate cuts this year, these expectations are extremely fluid.
Naeem Aslam, Chief Investment Officer at Zaye Capital Markets, said he expects rallies in gold and silver to be sold in the near term.
“Traders do not have a clear signal from the Fed in relation to their monetary policy,” he said. “The job data and other economic numbers indicate that the economy is slowing down, but the Fed is still determined to keep rates higher for longer. All of this is bringing strength back to the dollar index and taking the shine away from the metal.”
Looking at the precious metals’ technical outlook, Alex Kuptsikevich, Senior Market Analyst at FxPro, said that the renewed momentum in gold and silver comes after both metals managed to hold key retracement levels.
“This week's upward momentum revives the idea that the decline in the second half of April was a corrective pullback,” he said.
However, Kuptsikevich added that although gold and silver are seeing robust moves higher, a lot of work still needs to be done to attract new capital and drive prices above the recent all-time highs above $2,448 an ounce.
“A further rise in the price of gold with high bond yields in developed countries, huge budget deficits in many countries, and the need to support the economy makes one think that the upside potential is limited,” he said. “Until gold and silver reach a new level, we doubt the success of a new attack on the highs and see the potential for a renewed decline.”
Although gold could continue to consolidate, Peter Granditch, renowned Financial Analyst and market strategist, said that risks for gold and silver remain to the upside as interest rates have peaked due to weakening economic activity. However, he added that investors should be patient.
“I’m hard-pressed to think gold can get much below its recent lows while the upside remains hundreds of dollars (if not more) higher,” he said in a comment to Kitco News. “I don’t think this leg up will be as hard and as fast as the one we saw earlier his year, but my long-standing target of $2,536 is most reachable this year.”
With renewed attention on economic fundamentals, some analysts note that next week will be critical to gold and silver’s potential recovery and drive to record highs.
Next week's main economic event will be the April Consumer Price Index after the Federal Reserve signaled that its fight against inflation has been insufficient as prices remain well above its 2% target.
“If [consumer] prices rise more strongly once more, the recent slight rise in interest rate hopes is likely to be dampened again. Gold should then fall back again,” said Barbara Lambrecht, precious metals analyst at Commerzbank, in a note Friday.
Along with U.S. CPI data, some economists have said that after the disappointing consumer sentiment data on Friday, U.S. retail sales data will also garner some market attention. Traditionally, consumers who are less optimistic about the health of the economy spend less, which will weigh on economic activity.
“The renewed slump in the University of Michigan consumer sentiment gauge to a six-month low is hard to explain given that gasoline prices are now falling again, the stock market is back close to a record high, and there is little evidence of any major downturn in the labor market,” Paul Ashworth, Chief North America Economist at Capital Economics, said in a note. “That leaves us wondering if we’re missing something more worrying going on with the consumer. We don’t think so, but next week’s April retail sales figures will provide more insight.”
Economic data to watch next week:
Tuesday: U.S. PPI, Federal Reserve Chair Jerome Powell to speak in Amsterdam, Netherlands
Wednesday: U.S. CPI, U.S. retail sales, New York Fed Empire State Survey
Thursday: U.S. weekly jobless claims, U.S. building permits housing starts, Philadelphia Federal Reserve manufacturing survey
Twitter co-founder Jack Dorsey believes that Bitcoin (BTC), the industry’s largest and oldest cryptocurrency, is on track to hit a massive $1 million within six years. Dorsey believes the BTC price will explode to seven figures and beyond by 2030.
Dorsey: $1 Million BTC Price Tag By 2030
Bitcoin’s recent recovery from sub-$57K lows comes amidst renewed belief in higher price levels to come in the long term.
Speaking during a May 9 interview with journalist Mike Solana on Pirate Wires, Jack Dorsey said he sees Bitcoin gaining over 100x from its current price. When asked whether the Bitcoin price would reach $1 million in 2030, Dorsey chuckled, “I don’t know. Over… at least a million.” He added, “I do think it hits that number and goes beyond.”
For Dorsey, however, the collaborative nature of the ecosystem and the way it incentivizes collaborative efforts to improve the network is impressive. He called Bitcoin “a fascinating ecosystem and movement,” adding that “the most amazing thing about Bitcoin, apart from the founding story, is anyone who works on it, or gets paid in it, or buys it for themselves — everyone who puts any effort in to make it better — is making the entire ecosystem better, which makes the price go up.”
Dorsey, now the head of the financial services firm Block, is well known for his years-long contributions to the Bitcoin sphere, with his payments firm Block making a substantial investment in the flagship cryptocurrency and creating products including Bitcoin wallets and a global BTC mining system. Having purchased Bitcoin in October 2020 and early 2021, Block now holds 8,027 BTC — worth roughly $4.9 billion at today’s prices.
Dorsey’s Block Doubles Down on Bitcoin Amid Federal Probe
In a letter to shareholders on May 2, Dorsey revealed that his fintech conglomerate Block will flip 10% of its monthly Bitcoin-related gross profit into buying more BTC, with plans to do this each month for the remainder of 2024.
However, Block has found itself in the crosshairs of U.S. prosecutors. A May 1 NBC News report claims that federal prosecutors are probing the firm after a whistleblower submitted documents alleging “widespread and years long compliance lapses” at the company’s payment arms, Square and Cash App.
The documents presented to prosecutors from the Southern District of New York by the ex-Block employee reportedly show that Square and Cash App processed thousands of transactions for customers in sanctioned countries like Russia, Cuba, and Venezuela.
DISCLAIMER: None Of The Information You Read On ZyCrypto Should Be Regarded As Investment Advice. Cryptocurrencies Are Highly Volatile, Conduct Your Own Research Before Making Any Investment Decisions.
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