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Analysts abandon bear cave for bull run retail traders stay balanced but bullish

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Analysts abandon bear cave for bull run, retail traders stay balanced but bullish
 

Kitco NEWS has a diverse team of journalists reporting on the economy, stock markets, commodities, cryptocurrencies, mining and metals with accuracy and objectivity. Our goal is to help people make informed market decisions through in-depth reporting, daily market roundups, interviews with prominent industry figures, comprehensive coverage (often exclusive) of important industry events and analyses of market-affecting developments.

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Analysts abandon bear cave for bull run, retail traders stay balanced but bullish teaser image

With the seasonal boost of the Lunar New Year and Valentine’s Day in the rearview mirror, the gold market saw relatively little volatility in the price action this week. Spot gold spent much of the week trading in a $10 range between $2,020 and $2,030 per ounce, though the weekly chart looks more dramatic, as the low of $2,012.81 was set near the open during the overnight session on Sunday evening, while Friday afternoon saw a late push to the weekly high of $2,041.41.

The latest Kitco News Weekly Gold Survey showed Main Street holding steady with a relatively balanced but overall bullish posture heading into the final week of February, while Wall Street analysts abandoned the bear cave to gear up for another projected bull run.

Adrian Day, President of Adrian Day Asset Management, was among those who see further gains for gold next week. “After declining earlier on indications that the Federal Reserve would delay rate cutting after optimistic expectations, the market is now brushing off those issues,” he said. “The underlying fundamentals are positive and supporting gold.”

“I’m sticking with ‘up’ for next week,” said James Stanley, senior market strategist at Forex.com. “USD bulls had an open door after the CPI report last week but given the reaction to the Austan Goolsbee comment about not getting ‘flipped out’ about a single inflation print, that says to me that the Fed really doesn’t want to entertain hawkish policy options at the moment. It’s not really a single inflation print: Core CPI has oscillated around 4% for the past five months, but the fact that the Fed has talked this down is meaningful. And the market reaction so far seems to agree.”

“The other side of that is that the European Central Bank has been holding firm regarding rate cuts and given the large allocation of the Euro in the DXY quote, that could similarly keep pressure on the USD next week, which I expect to be a positive for Gold,” Stanley added.

Adam Button, head of currency strategy at Forexlive.com, took the opposite view of the Fed’s likely response to hot data. “If we get a few more upside economic data surprises, the Fed will start to lose its dovish bias,” he said. “If so, we could see significant declines in gold.”

“The biggest risk to gold right now is if we get hot inflation data again, because a lot of this move right now is safety buying, flight to safety, but also the expectations that there's rate cuts coming sooner than later,” said Bob Haberkorn, Senior Commodities Broker at RJO Futures. “The last monthly data that came out pushed those expectations back further, there's still talk of June, but maybe September.”

Haberkorn said gold has formed a nice base around 2000. “It’s gone through there a few times, but just the geopolitical risk that's possibly on the horizon, coupled with U.S. elections this year, and the expectations of the Fed, has kept gold at that nice support level of $2,000,” he said. “Any dips below there have been getting bought up pretty quick.”

He said that next week, the main things for gold traders to watch will be Treasury yields and the stocks. “The strength in the U.S. equity markets really put a cap on what gold could do this week,” he said. “It's risk-on environment here versus flight-to-safety buying. I think the headline PCE and any Fed speak next week on rate hikes and rate cuts is going to be the next main driver here. I expect gold to remain in this range into the next Fed announcement.”

Haberkorn believes the upcoming Fed speakers will remain consistent in their message. “If one of them does hint towards something with cuts sooner than later, that would be extremely beneficial for the gold bulls at this point,” he said. “But it's pretty impressive that gold has maintained $2,000 given the spot where our interest rates are at. It just highlights the fear that's out there in the world at this point that has strong demand across the board here for gold assets.”

This week, 11 analysts participated in the Kitco News Gold Survey, and Wall Street has done a near-total about-face on gold’s prospects from last week. Eight experts, or 73%, expected to see higher gold prices next week, while one lone analyst, representing 9%, predicted a price drop, and two experts, or 18%, expected gold prices to trade sideways during the coming week.

Meanwhile, 203 votes were cast in Kitco’s online polls, with Main Street maintaining the same basic distribution of views it had last week. 89 retail investors, representing 43%, looked for gold to rise next week. Another 52, or 26%, predicted it would be lower, while 63 respondents, or 31%, were neutral on the near-term prospects for the precious metal.

 

As the Fed’s key measure of inflation, Thursday’s PCE price index will be the highlight among releases next week, but there’s a full docket beyond inflation data. Markets will also be watching new home sales on Monday, durable goods orders and consumer confidence on Tuesday, Wednesday’s Preliminary Q4 US GDP report, pending home sales on Thursday, and ISM manufacturing PMI on Friday.

Darin Newsom, Senior Market Analyst at Barchart.com, sees the technical picture trending solidly green next week. “The short-term trend on April’s daily chart looks to have turned up,” he said. “Initial resistance could be at the recent high of $2,045.50. Beyond that the target is up at $2,061.30, then $2,083.20.”

“Gold rallied five of the past six sessions coming into today,” said Marc Chandler, Managing Director at Bannockburn Global Forex. “The Dollar Index has also fallen in six of the last seven sessions before today.”

Chandler said he expects the dollar to continue to trend lower, as he believes the interest rate adjustment is nearly over. “The market has converged to the three rate cuts the median Fed dot pointed to in December,” he said. “The momentum indicators are turning up. I think there is scope for spot gold to trade toward $2050 in the week ahead.”

He noted that this month’s high near $2065.50 was set on Feb. 1. “Maybe we can see that on a soft employment report on March 8,” Chandler added. “That said, some demand for gold was reported from China, but with higher stocks, FOMO may see less demand for gold for Chinese investors.”

Colin Cieszynski, Chief Market Strategist at SIA Wealth Management, was looking at the upward move in gold markets on Friday.

“I think it might be risk-off,” he said. “We saw earlier in the week, and over the last couple of weeks, when Bitcoin really shot up, gold was really struggling, so I always look at gold versus the U.S. dollar, and then tier-two is gold versus Bitcoin, because when you have people that are looking to trade alternative assets, when they're risk on, they'll trade cryptos, and when they're risk off, they'll do precious metals.”

Cieszynski said gold’s move isn’t so much about people getting fearful, but just an easing of risk appetite now that we're past earnings season. “Every single major piece of news is now out,” he said. “With the Nvidia earnings, Cisco, all the big names have now reported results in the U.S., so we're really at the end of earnings season now. We don't have any of those things coming in to drive more risk appetite.”

He noted that if we see profit taking in the risk markets, that could be beneficial for gold. “I'll go bullish on gold next week,” he said. “It's not necessarily that there's a negative event, it's just a lack of events to keep the party going.”

Cieszynski said that while next week’s PCE report is important, markets tend to underreact to it. “PCE usually is seen as more confirmation,” he said. “I still think most mainstream people don't understand PCE, so they all go off and look at the other ones. In fact, the markets often willfully ignore it in favor of CPI. Whereas if you look at PCE, you can see a mile away what the Fed is going to do.”

Turning to the timing of the Fed’s pivot, Cieszynski said the Fed will actually want to deliver the first rate cut in June if the data allows it, and the timing of the election is a key consideration.

“If you're going to do three rate cuts quarterly, then you'll start at the end of June,” he said. “You'll do June, September, and December. That kind of says, ‘we're on a regular thing,’ and it keeps them away from the election.”

“If they go September, then you'd be talking about them trying to do a rate cut at the end of October, and that's not realistic. They're not going to do anything,” he said. “Let's put it this way: If they don't cut rates at the end of June, then you're looking at two rate cuts, not three, because you're not going to go July-September-November. You might go July-September-December, but they don't seem to like doing that anymore.”

Cieszynski emphasized that the move wouldn’t be about making markets happy, rather it’s about getting on a rate cutting path that works with the election calendar and aligns with their history.

“They don't want people going, ‘the Fed is on, the Fed is off, the Fed is on,” he said. “They don't want it, because that creates instability and undermines confidence. They don't want the Fed to be the wild card. As much as they say they're data-dependent, once they start a program, they try to be fairly consistent and not keep everybody guessing.”

Mark Leibovit, publisher of the VR Metals/Resource Letter, believes U.S. government manipulation is restraining gold’s strength, but foreign buyers are driving the price action regardless.

“Commentary had virtually no reference to government suppression of price,” he said. “Despite that, the physical market outside the U.S. is taking control from the COMEX. Adding to positions on manipulated shakeouts.”

And Kitco Senior Analyst Jim Wyckoff sees gold prices still stuck in their recent channel next week. “Steady and sideways,” he said. “Stiff technical support levels lie just below the market. Yet, there has been no fundamental catalyst to inspire the bulls to get more active on the long side.”
 

Sot gold last traded at $2,036.09 at the time of writing, up 0.58% on the day and 1.14% on the week.

Kitco Media

Ernest Hoffman

Time to Buy Gold and Silver

Tim Moseley

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A major attack on US infrastructure is now at its highest probability Brandon Weichert

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A major attack on U.S. infrastructure is now at its highest probability – Brandon Weichert

(Kitco News) – Is the U.S. at risk of a massive cyberattack in the next eight months? The U.S. election year is "the most opportune" time to carry out a cyber 9/11 on U.S. infrastructure, warned Brandon Weichert, geopolitical analyst and author of 'Winning Space.'

The geopolitical threats keep escalating in the first two months of the year, and the latest one could trigger a potential kinetic war in space, Weichert told Michelle Makori, Lead Anchor and Editor-in-Chief at Kitco News.

Last week, the White House confirmed that Russia has developed a "troubling" emerging anti-satellite weapon. U.S. President Joe Biden made a public appearance to reassure the public that there's "no nuclear threat" to the U.S. as Russia is developing this weapon but did confirm that intelligence indicates Russians are working on a weapon to attack U.S. satellites.

This was in response to Mike Turner, the Republican chairman of the House Intelligence Committee, who made a public statement about an unspecified "serious national-security threat" to the U.S., asking President Biden to declassify the information related to this.

Since Turner's announcement, the U.S. government has reportedly been in direct contact with Russia, warning Moscow not to deploy a new nuclear-armed anti-satellite weapon, stressing that it violates the Outer Space Treaty.

Many geopolitical experts like Weichert are concerned that this anti-satellite weapon could be used to attack satellites that are critical to America's military and civilian capabilities.

"This is what I was warning about," Weichert said. "They're going to use either co-orbital satellites or a laser to try to blind our systems to buy them time, create a window of opportunity for their forces on earth to exploit while we're still deaf, dumb, and blind."

To learn about what kind of weapon Russia is developing and how devastating it could be for the U.S., watch the video above.

The impact could be massive, Weichert pointed out. "It's going to knock out our banking," he said. "You won't be able to dial 911. You won't be able to use your debit card, your credit card, or Apple Pay to get gas at the pump. Literally, all of our electronic life in the West will ground to a halt if enough of those satellites are taken out."

Weichert believes that this could also be a strategy by Moscow to push for diplomatic resolution to the war with Ukraine that would allow for more concessions to Russia.

Weichert has been warning about Russia making this move for several years — appearing on Kitco with this message at the end of 2022. Catch up on that interview here.

These warnings also come as cyberattacks surge in the U.S., with FBI Director Christopher Wray warning that Chinese hacking attempts are reaching unprecedented levels.

During the annual Munich Security Conference, Wray said that Beijing is increasingly inserting "offensive weapons within our critical infrastructure poised to attack whenever Beijing decides the time is right."

This week, the U.S. saw significant cell outages, with AT&T's network failing for thousands of its customers. The FBI and Department of Homeland Security are now investigating whether the incident resulted from a cyberattack or a hack.

Pharmacies across the U.S. also reported delays in prescription orders due to a cyberattack against Change Healthcare — one of the nation's largest healthcare technology companies.

Cyber 9/11: This year is the most ‘opportune’ time to strike

The U.S. election year is the most "opportune" time to carry out a large-scale cyberattack, according to Weichert, who sees a chance of that happening between 75-80%.

"2024 is the fulcrum point in the 21st century for the United States. Not only will it determine how our country develops politically and economically over the next 30 or 40 years. But it's also going to determine if we remain the superpower," he explained. "One of the ways our enemies are looking at eroding that is not only with Space Pearl Harbor but also with a cyber 9/11," Weichert explained.

If a major cyberattack were to take place, the most likely timing would be the next eight months. The goal is to create chaos and confusion in order to distract the U.S. from other geopolitical conflicts, he added.

Weichert lists several top geopolitical focal points that could flare up into global-scale conflicts this year. For insights, watch the video above.

To find out whether a major cyberattack is too late to stop, how to prepare for it, what to expect from the U.S. as a response, and how the U.S. Space Force fits in, watch the video above.

Kitco Media

Anna Golubovaformation (Reed Elsevier), where he covered the petrochemicals markets from 2003 to 2005.

Time to Buy Gold and Silver

Tim Moseley

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The Next Crypto Bull Market Is At Hand Ten Essential Tips For Investing In Cryptocurrency

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The Next Crypto Bull Market Is At Hand. Ten Essential Tips For Investing In Cryptocurrency.

The recent green light for Bitcoin ETFs has thrust cryptocurrency back into the limelight, and with 2024 shaping up to be a pivotal year for the financial markets, many investors are pondering whether they should tap into the asset class that has delivered the most impressive returns over the past decade, as per Black Rock's analysis. 

The SEC's approval of spot Bitcoin ETFs marks a notable milestone, giving a significant regulatory stamp of approval to the most prominent cryptocurrency in the world while also providing exposure to the rapidly growing crypto market. This development will likely alleviate some concerns investors may have had about investing in the space, making it more accessible and appealing to a broader range of investors.

Before diving into the world of cryptocurrency, there are ten essential tips to remember. This article aims to provide investors with valuable insights by highlighting ten critical factors to consider when investing in cryptocurrency.


Image source: ishares.com.pdf

Ten Key Tips To Know Before Investing In Crypto 

#1. Exchanges

First and foremost, it's important to understand the various types of exchanges, platforms, and products available that offer crypto. Exchange-traded funds (ETFs) have recently gained popularity, providing crypto exposure and a secure and regulated way to invest in cryptocurrency. However, ETFs and similar products face three main issues. 

One concern is that their trading hours are limited to regular stock market hours, unlike the continuous 24/7 trading of cryptocurrencies. As a result, there may be discrepancies in pricing between the ETFs and the actual assets, as well as challenges in entering or exiting positions before significant price fluctuations occur.

Another issue is that they do not permit you to possess the actual asset outright. In cryptocurrency, taking custody of your own funds is typical among seasoned investors. While the self-custody approach may not suit everyone and carries its own set of risks, the advantage is that it removes the counterparty risk associated with ETFs.

The third issue is the limited availability of exchange-traded products that allow investors to invest in altcoins, which are cryptocurrencies other than Bitcoin. While some investors may be content with Bitcoin (BTC) exposure, others seek opportunities in alternative cryptocurrencies that offer the potential for significantly higher returns, ranging from 10 to 100 times.


Image source: Investopedia

#2. Volatility

Before investing in cryptocurrency, it's crucial to understand that prices can fluctuate rapidly and unpredictably, especially for alternative coins. Price swings of 10% or more in a short period are common for Bitcoin, while altcoins can experience even more significant fluctuations, with price changes of 20% or more in minutes. This high level of volatility can be stressful and may lead to impulsive decisions based on emotions rather than sound investment strategies. Consequently, many investors tend to buy during strong market upswings and sell during sudden downturns.

Cryptocurrencies experience significant price fluctuations primarily due to their speculative nature. The main reason behind this volatility is that cryptocurrencies are designed to challenge and potentially replace traditional financial systems. Each crypto project aims to address specific aspects of the financial system. Tokens that provide real-world utility within a particular niche may be less speculative.

An additional factor that plays a role is the significant use of leverage trading within the cryptocurrency environment. During bearish periods, minor price declines can snowball into substantial crashes as leveraged traders are forced to liquidate their positions, while in bullish markets, small price increases can rapidly escalate into massive price surges as leveraged traders scramble to maintain their positions.

Fortunately, two strategies can help mitigate the impact of volatility in cryptocurrency trading. Firstly, investing in cryptocurrencies with a larger market cap can provide a lower-risk option, as they tend to experience less price fluctuation than smaller-cap cryptocurrencies. However, this stability comes at the cost of potentially lower returns. Secondly, traders can reduce their exposure to volatility by using less leverage or setting stop losses at prudent levels, informed by technical analysis. Being knowledgeable about chart patterns and trends can aid in making informed decisions.

#3. Categories of Cryptocurrencies

This relates to the third essential aspect to consider before investing in cryptocurrency. It is crucial to understand that not all cryptocurrencies are the same. Generally, there are two main categories of cryptocurrencies – coins and tokens. Coins are digital currencies utilized to cover transaction costs within their respective blockchain networks, like BTC within the Bitcoin blockchain. On the other hand, tokens are digital assets that can be created through smart contracts on specific cryptocurrency blockchains, such as Ethereum or Solana.

The value of coins is typically tied to the blockchain they are a part of. In contrast, tokens often derive value from their usefulness or utility within a specific decentralized application (dApp) or protocol. This distinction is noteworthy because coins tend to perform better than tokens in the cryptocurrency market, likely due to the greater level of effort and investment required to create a new blockchain from scratch.

It is possible for anyone to generate a cryptocurrency token quickly using specific decentralized applications. This has led to a proliferation of tokens, with millions available, while only a select few cryptocurrency coins have gained widespread recognition and utility. Most tokens lack practical use or value, whereas those that serve a purpose tend to exhibit more significant potential for success.

The success of a coin or token is ultimately determined by the narrative it's associated with. Take Bitcoin's BTC, for instance, which is widely regarded as the digital equivalent of gold. This narrative is just one of many that can impact price movements. This article delves into other significant narratives that can shape the performance of coins and tokens.

#4. Quality Information

Finding reliable information about cryptocurrency projects can be a significant challenge. This is due to a shortage of educational resources, the intricate nature of most crypto projects, and a general lack of information available. As a result, it can take time and effort to make informed investment decisions in the cryptocurrency market.

The lack of understanding surrounding cryptocurrency has led to significant financial losses for many investors. Many have sought to solve this issue through online publications and transparent crypto platforms’ blogs and videos, which aim to educate the public about the nature of cryptocurrency and the scams that have plagued the industry conceived by nefarious opportunists seeking to exploit others' ignorance.


Image source: Coinmarketcap

#5. Market Cap

Before investing in cryptocurrency, it's essential to understand the distinction between a crypto's market cap and its price. Many people assume that a crypto's price determines its potential for growth, but in reality, the market capitalization holds greater significance. Many first-time investors in the cryptocurrency market are unaware of this fact. Consequently, some cryptocurrencies with lower price tags tend to perform better than those with higher price tags. 

This is because new investors often assume that a low-priced cryptocurrency has more room for growth and will eventually reach the same level as Bitcoin, making them rich in the process. Practically speaking, it is essential to consider both the price tag, which is attractive to new and inexperienced investors, and the market cap, as it ultimately influences a cryptocurrency's potential increase or decrease in percentage terms.

You can gauge the potential growth of a coin or token by comparing it to more established cryptocurrencies within the same niche or category and observing their growth during previous market upswings. Setting realistic expectations and understanding that smaller-cap assets are unlikely to surpass the dominance of BTC or ETH in the foreseeable future is essential.

#6. Self Custody

Before investing in cryptocurrency, it's crucial to understand the importance of self-custody. In the crypto space, a famous saying goes, "Not your keys, not your crypto." This means that if you don't possess the private keys to your crypto wallet, you don't truly own the cryptocurrency inside it. Self-custody is crucial because it ensures that you have complete control over your digital assets and that they're securely stored in a wallet that only you can access.

So, if you're not given a 12 or 24-word seed phrase, also known as a private key, when creating an account and are required to copy and secure that key in a safe place, you're likely using a custodial service. In other words, your cryptocurrency is being held by a third party, similar to how a bank holds your money. Interestingly, the money in your bank doesn't technically belong to you either, as explained in this article.

It is essential to take control of your own cryptocurrency to achieve true financial independence, which means having the freedom to use your assets as you please and when you please. You need to establish a cryptocurrency wallet and consistently store the coins or tokens you are not currently trading in that wallet.

Cryptocurrency wallets come in various forms, including mobile, browser, and desktop versions. However, a hardware wallet is advised for optimal security, especially for significant crypto holdings. This physical device allows you to store your cryptocurrency offline, providing additional protection.

#7. Portfolio Diversification 

Creating a diversified crypto portfolio is an important consideration before investing in cryptocurrency. While all coins and tokens are part of the crypto market, it is essential to understand that they come with different levels of risk, rewards, and utility.

Bitcoin’s BTC is viewed as a secure investment haven within the cryptocurrency sector. During market downturns, investors often flock to BTC as a safe haven, causing its value to increase. On the other hand, when the markets are thriving, investors tend to move their funds from BTC into more speculative cryptos, starting with Ethereum (ETH) and then to other smaller cryptocurrencies down the list.

Furthermore, stablecoins, which are cryptocurrencies supported by and pegged to traditional currencies, particularly the US dollar, are also considered safe options during times of turbulence in the cryptocurrency market. However, not all stablecoins are created equal, and some are considered safer than others due to their unique characteristics and uses.

A diversified cryptocurrency portfolio should include a mix of established large-cap assets, mid-sized coins with growth potential, and a few small-cap projects with promising futures. It's crucial to avoid over-investing in too many cryptocurrencies, as managing and tracking their performance can become challenging. Instead, focus on gaining exposure to a range of narratives that are likely to drive the next bull market in the crypto space.


Image source: Cwallet.com

#8. Time Horizon

Before investing in crypto, it's essential to consider your investment time frame, and this is closely related to the seventh factor. Cryptocurrency markets tend to fluctuate in a predictable four-year cycle, with the first one to two years typically experiencing a bull market, followed by a bear market during the final two to three years. Understanding this pattern can help you make informed investment decisions and maximize your returns.

These crypto cycles are believed to be influenced by the Bitcoin halving event, which occurs every four years and involves reducing the number of BTC coins given to Bitcoin miners by half. The next halving is anticipated to take place in April 2024.

The cryptocurrency market has traditionally experienced a significant upswing a few months following the halving event. If history is any guide, the next bull run is expected to begin around August or shortly after that, with Bitcoin and most alternative coins reaching new record highs during this time. However, it's important to note that the peak of this cycle may not occur until mid to late 2025, according to recent reports.

If you have been investing in cryptocurrencies before the market reaches its peak frenzy, you will likely see significant profits when it reaches its highest point. Surprisingly, you may not feel inclined to sell your holdings at that point.

As highlighted in the introduction, Crypto has emerged as the best-performing investment category in the past ten years. Retaining and building up significant amounts of well-known cryptocurrencies, such as BTC, during various market fluctuations would have yielded more significant profits than selling them.

This emphasizes that your personal time frame is the key consideration. If you aim for significant profits in the short term, it's advisable to align with the four-year pattern. Yet, if your goal is long-term wealth accumulation, it may be wiser to focus on steady accumulation without overanalyzing the process.

#9. HODL

The ninth key fact to consider before investing in cryptocurrency is that only two assets have consistently outperformed inflation over the past few decades: technology and finance. Notably, cryptocurrency represents a fusion of these two domains and boasts a unique advantage – it cannot be seized or confiscated. This attribute contributes to its value and potential for long-term growth.

This statement applies only to genuinely decentralized cryptocurrencies, as only those can uphold these characteristics. Bitcoin's BTC is considered the most decentralized cryptocurrency, serving as a safeguard or hedge against the entire existing financial system.

Considering the unpredictability of the financial system, it's a good idea to diversify your investments and protect your wealth in case of uncertainty. One way to do this is by investing in an asset that can't be easily seized, such as Bitcoin. Unlike gold, which requires physical storage and security, Bitcoin can be readily stored and transferred using just a seed phrase, which can be memorized for added convenience.

It’s salient to note here that every Bitcoin transaction is recorded on a public ledger and, therefore, is traceable. This transparency can concern individuals who want to distance themselves from the traditional financial system. However, despite this limitation, Bitcoin remains a viable alternative to conventional currencies, apart from gold, particularly for those who value freedom and decentralization.

For emphasis, the notion that central banks aspire to establish a financial system characterized by universal surveillance and control is not a far-fetched conspiracy theory. In fact, various reports have been published explicitly outlining such intentions. This system would enable comprehensive monitoring of all assets, ensuring that every item of value is accounted for and exists within a network that central authorities govern.

In any case, while it may be thrilling to consider the potential earnings in cryptocurrency, it's crucial to bear in mind that preserving these funds could prove challenging if the financial landscape follows its current path. Securing a portion of these profits in a tangible asset for long-term stability is prudent.


Image source: X

#10. Scams

It is crucial to be aware that the world of cryptocurrency investing is rife with scams. The various factors discussed earlier create an environment where misinformation about crypto is prevalent and highly persuasive. Deceptive practices can take the form of fraudulent airdrops and giveaways, with the latter becoming increasingly widespread due to advancements in deep fake technology.

Fraudulent accounts posing as well-known figures in the cryptocurrency space are widespread during periods of market growth. Trying to report or remove all of their comments is futile, and it's crucial to exercise caution when engaging with unsolicited messages or investment opportunities. 

A general guideline is to be cautious of offers that seem too good to be true because they likely are. Additionally, any direct message claiming to be from a prominent crypto personality should be met with skepticism. When interacting with decentralized applications and protocols, it's essential to do your due diligence to avoid losing funds. Finally, storing any coins or tokens not currently being traded on a secure hardware wallet is vital to protect them from potential threats.

This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

 

 

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.

 

 

 

 

 

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Gold Price News: Gold Drifts As US Jobless Numbers Fall

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Gold Price News: Gold Drifts As US Jobless Numbers Fall

Gold prices edged slightly lower on Thursday, after US unemployment figures came in below market expectations, suggesting a slightly stronger economy and less pressure for a loosening of monetary policy.

Prices initially pushed higher to $2,035 an ounce in early morning deals, but it was downhill from the morning peak, with prices dropping as low as $2,020 an ounce by late afternoon.

US initial jobless claims figures were released Thursday showing that the number of people claiming unemployment benefits in the US fell by 12,000 to 201,000 in the week ending February 17, well below market expectations of 218,000, and marking the lowest unemployment level for five weeks.

US stock markets were also higher on Thursday, contributing to the bullish picture of the economy. Any signs of a stronger-than-expected economy tend to ease the pressure on central banks to cut interest rates, allowing more leeway to maintain a hawkish stance on monetary policy for longer. The prospect of an extended period of higher interest rates is bearish for gold because it raises the opportunity cost of holding non-yield-bearing assets like precious metals.

Looking ahead, the immediate outlook for macroeconomic data releases is light, although the markets may pay some attention to the German Ifo Business Climate figures for February due for release on Friday, providing a snapshot of the health of the EU’s powerhouse economy. Beyond that, eyes will be on Monday’s speech by ECB President Christine Lagarde for clues on the EU economy and the central bank’s monetary policy stance.

Frank’s experience covering the commodities markets spans 22 years, with a particular specialism in metals, carbon and energy markets. He has worked as a senior editor for S&P Global Commodity Insights (formerly Platts) and before this, at ICIS-LOR, a part of Reed Business Information (Reed Elsevier), where he covered the petrochemicals markets from 2003 to 2005.

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Tim Moseley

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Trump Softens His Stance On Bitcoin: I Can Live With It One Way Or The Other’

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Trump Softens His Stance On Bitcoin: ‘I Can Live With It One Way Or The Other’

By Brenda Ngari – February 23, 2024

Former United States President Donald Trump seems to have softened his view on Bitcoin, marking a notable deviation from his previous hardline stance. Despite maintaining his preference for the US dollar in a Wednesday interview, the Republican front-runner acknowledged the dominant cryptocurrency’s growing popularity and demand.

Bitcoin Has “Taken On A Life Of Its Own”

Back in 2019, while still in office, Donald Trump publicly asserted he was “not a fan of Bitcoin and other cryptocurrencies”, arguing that they are “not money” and their value is based on “thin air.” He also reportedly ordered the treasury secretary to “go after Bitcoin” and also called the top crypto a scam in another Fox interview. Let’s also not forget that Trump’s administration was known for its efforts to stonewall spot Bitcoin ETFs and attempted to ban self-hosted wallets.

Since then, he seems to have eased his stance. Speaking to Fox News during a town hall event in South Carolina on Wednesday alongside South Carolina Senator Tim Scott, Trump observed that “many people are embracing” Bitcoin and that as more people want to pay with BTC, he can “live with it one way or the other.”

He followed his comments by talking about plans to regulate the crypto sector. “It’s taken [on] a life of its own,” the former president stated. “You probably have to do some regulation.

Some crypto observers attributed the change in tune to pro-Bitcoin Vivek Ramaswamy, a former Republican candidate who supported Trump after dropping out of the White House race earlier this year. Ramaswamy has been both a champion of the cryptocurrency industry and against the launch of central bank digital currencies (CBDCs). In other words, Trump’s U-turn is likely politically motivated to garner more votes from the growing cryptosphere ahead of the 2024 presidential election.

Trump’s softer stance on Bitcoin doesn’t necessarily mean that he is now anti-dollar, however. “I’ve always liked one currency. I call it a currency. I like the dollar,” he explained.

Trump believes CBDCs are dangerous and promised to “never allow” the Federal Reserve to create a digital dollar if reelected.

Meanwhile, his biggest competitor, Joe Biden, is skeptical of Bitcoin and cryptocurrencies in general. Biden previously proposed several measures to rein in crypto, including a 30% tax on crypto mining operations and releasing a scathing report bashing crypto for “ignorance of basic economic principles.”

With that being said, the Securities and Exchange Commission (SEC) gave the regulatory nod in January to the first spot BTC ETFs in the U.S.

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.

The original article written by Brenda Ngari and posted on ZyCrypto.com.

Article reposted on Markethive by Jeffrey Sloe

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Reddit Joins Crypto Club New IPO Filing Reveals Treasury Exposure To Bitcoin Ether and MATIC

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Reddit Joins Crypto Club, New IPO Filing Reveals Treasury Exposure To Bitcoin, Ether, and MATIC

By Brenda Ngari – February 23, 2024

Social media platform Reddit has made headlines with its decision to invest part of its excess cash in Bitcoin (BTC) and Ethereum (ETH), as revealed in a Feb. 22 S-1 filing with the Securities and Exchange Commission (SEC). The crypto investments make Reddit one of the few companies that hold crypto assets in their balance sheets alongside the likes of Elon Musk’s EV maker, Tesla, and Michael Saylor’s MicroStrategy.

Crypto Exposure

Reddit has officially filed to go public on the New York Stock Exchange under the ticker RDDT.

In a filing for an initial public offering (IPO), the firm disclosed that it has invested its excess cash reserves in crypto assets, including Bitcoin (BTC) and Ether (ETH), and has also acquired Polygon’s MATIC to pay for virtual goods. The social media giant said it may continue this strategy in the future.

Reddit indicated that BTC and ETH were the only cryptocurrencies held in the company’s treasury as of Dec. 31, 2023. It did not reveal how many tokens it holds but said the amounts are “immaterial.”

“The net carrying value of our cryptocurrencies, which consisted primarily of Bitcoin and Ether, as well as all related cryptocurrency activity, was immaterial for the periods presented,” Reddit wrote.

Moreover, the firm said it holds these cryptocurrencies so that its engineering and product teams can use them for specific applications.

Reddit’s Blockchain Experimentation

In the S-1 filing, Reddit said it has been “experiment[ing] with blockchain technology”.

The firm also said it sees some huge potential in cryptocurrencies and blockchain-based technologies but isn’t sure whether adoption by businesses and users will continue:

“While we believe cryptocurrencies and blockchain technology have significant potential, the popularity and prevalence of cryptocurrencies is a relatively recent trend, and whether cryptocurrencies and blockchain technology will continue to be adopted by consumers and businesses in the long term is uncertain.”

Reddit has cozied up to the crypto asset space in the past: In 2020, the platform launched Moons and Bricks — tokens running on Ethereum’s blockchain. Those who contributed to the cryptocurrency section of the social media site could receive Moons or Bricks as rewards and spend them for specific benefits. But Reddit pulled the plug on the blockchain-based reward service in November, citing problems with scalability and regulation.

While the social community platform reported roughly $804 million in sales in 2023, a decent 20.5% year-on-year increase, profitability remains somewhat of a pipe dream with a net loss of $91 million. The San Francisco-headquartered firm expects to commence trading on the NYSE in March.

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.

The original article written by Brenda Ngari and posted on ZyCrypto.com.

Article reposted on Markethive by Jeffrey Sloe

** Loans, secure funding for business projects in the USA and around the world. Learn more about USA & International Financing at Commercial Funding International. **

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Gold silver weaker as US stock markets post good gains

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Gold, silver weaker as U.S. stock markets post good gains

Gold and silver prices are modestly down and near their session lows in midday U.S. trading Thursday. Solid gains in the U.S. stock indexes and a risk-on trading day today are negatives for the safe-haven metals. Chart-based selling is also featured in gold and silver today as the near-term technical postures for both metals tilt slightly toward the bears. April gold was last down $4.30 at $2,030.30. March silver was last down $0.114 at $22.77.

Early mild gains in gold were erased when the U.S. dollar index rebounded from its overnight losses and moved above unchanged on the day.

Asian and European stock markets were mixed but mostly firmer in overnight trading. Japan’s Nikkei stock index Thursday hit a record high for the first time in 34 years. U.S. stock index futures are higher and near the daily highs, with the S&P 500 futures and Dow Jones Industrial average hitting new record highs.

 

The key outside markets today see the U.S. dollar index slightly up. Nymex crude oil prices are higher and trading around $78.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently fetching 4.325%.

Technically, April gold futures bears have the slight overall near-term technical advantage. Prices are in a 2.5-month-old downtrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at the February high of $2,083.20. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the November low of $1,975.10. First resistance is seen at today’s high of $2,045.50 and then at $2,050.00. First support is seen at this week’s low of $2,023.90 and then at $2,007.60. Wyckoff's Market Rating: 4.5.

March silver futures bears have the slight overall near-term technical advantage. However, a nine-week-old downtrend on the daily bar chart has been negated to suggest a market bottom is in place. Silver bulls' next upside price objective is closing prices above solid technical resistance at $24.50. The next downside price objective for the bears is closing prices below solid support at the February low of $21.975. First resistance is seen at today’s high of $23.20 and then at last week’s high of $23.56. Next support is seen at $22.50 and then at $22.25. Wyckoff's Market Rating: 4.5.

March N.Y. copper closed up 135 points at 388.85 cents today. Prices closed nearer the session high today. The copper bulls have the slight overall near-term technical advantage and have momentum. Copper bulls' next upside price objective is pushing and closing prices above solid

technical resistance at the January high of 394.70 cents. The next downside price objective for the bears is closing prices below solid technical support at the February low of 365.50 cents. First resistance is seen at this week’s high of 390.85 cents and then at 394.70 cents. First support is seen at Wednesday’s low of 385.15 cents and then at this week’s low of 380.00 cents. Wyckoff's Market Rating: 5.0.
 

Kitco Media

Jim Wyckoff

Time to Buy Gold and Silver

Tim Moseley

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Cardano’s Charles Hoskinson Warns of Centralization Risks in the Crypto Industry

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Cardano’s Charles Hoskinson Warns of Centralization Risks in the Crypto Industry

By Newton Gitonga – February 22, 2024

Charles Hoskinson, the founder of Cardano, has issued a stark warning about the dangers of centralization in the cryptocurrency industry.

Speaking during a live broadcast titled “Legacy is Eating Crypto” on Monday, Hoskinson cautioned that the growing influence of a small number of powerful actors could undermine the core principles of cryptocurrency, such as decentralization, privacy, and equality.

Notably, the pundit highlighted the rapid growth of stablecoins, such as Tether (USDT) and USD Coin (USDC), which now account for approximately 70% of all on-chain transaction volume. According to Hoskinson, these stablecoins, backed by traditional assets, are subject to the regulations of their jurisdictions and central issuers, creating potential vulnerabilities and centralization risks.

“USDT and USDC…are asset backed which means that there’s a central issuer. There is a company who is regulated in a jurisdiction subject to that jurisdiction’s rules and regulations, and whatever that jurisdiction wants to put upon that company, permissive or otherwise, they are subject to it cannot get out of it,” said Hoskinson.

In contrast, Hoskinson advocated for algorithmic stablecoins, which are not backed by traditional assets and operate decentralised. Notably, algorithmic stablecoins, such as DAI, maintain their value through algorithms and smart contracts without relying on a central issuer or traditional assets. However, the crypto market has been cautious since the TerraUSD (UST) de-pegging incident in May 2022, which raised concerns about their safety and caused a ripple effect on the broader crypto market.

Despite the risks, algorithmic stablecoins offer advantages such as decentralization, autonomy, and potentially higher yields. Developers have thus been improving their design and functionality, positioning them as a potentially significant force in the cryptocurrency market.

Hoskinson also criticized the increasing power of a small number of Legacy actors, including centralized exchanges, regulated institutions, and ETF holders like BlackRock, who control a significant portion of the value flow in the cryptocurrency market. He argued that these entities have the power to decide the future of cryptocurrency projects, as they can influence listings, liquidity, and regulatory compliance.

“As more of these Legacy actors come in, they’ll acquire more and more of the supply. They already have a fifth of what Satoshi has,” Hoskinson added. “10 Legacy regulated institutions control the vast majority of your value flow and also get to decide the future of all of these projects.”

That said, Hoskinson emphasized the importance of preserving the core values of cryptocurrency, including freedom of association, commerce, and expression, and the need to resist the encroachment of legacy actors in the industry. He further urged the community to remain vigilant and to consider the long-term consequences of centralization and the potential erosion of the core values of the cryptocurrency movement.

Notably, Hoskinson has consistently advocated for decentralization, even as Cardano continues to receive improvements aimed at promoting security, scalability, and sustainability while empowering users and developers with greater control and autonomy.

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.

The original article written by Newton Gitonga and posted on ZyCrypto.com.

Article reposted on Markethive by Jeffrey Sloe

** Loans, secure funding for business projects in the USA and around the world. Learn more about USA & International Financing at Commercial Funding International. **

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Gold Price News: Gold Prices Gain As US Dollar Dips

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Gold Price News: Gold Prices Gain As US Dollar Dips

Gold prices made further gains on Monday and Tuesday to rise above $2,030 an ounce for the first time since February 9.

The US dollar fell against other major currencies on Tuesday, adding further to a downward move that’s continued since February 14. A weaker dollar tends to drive dollar-denominated assets like gold and silver higher as it makes the precious metals cheaper for buyers in other currencies. US Treasury yields also fell on Tuesday, adding to the bullish picture for gold prices.

The latest moves came against a background of heightened geopolitical risk, after news reports on Sunday said Iran-backed Houthis in Yemen had attacked another ship in the Gulf of Aden. The Houthis have said their attacks are a response to the Israeli state’s military actions in Gaza.

The ongoing hostilities against ships are a concern for the markets as they threaten deliveries in a key commercial waterway, and the uncertainty they pose tends to drive investment away from riskier assets toward safe havens like gold.

The markets were also looking ahead to Wednesday’s US Fed FOMC minutes and expected comments from Fed officials to gain insight into the timing of any interest rate cuts in the coming months. Recent figures suggest the market is now split on whether the first cuts are likely to come in May, June or July, while in January, most bets were on a May cut.

A prolonged period of very low interest rates, coupled with massive quantitative easing by central banks, was a key factor in gold’s dramatic price increase since the global financial crisis of 2008-2009. The rate-hiking cycle seen over the last two years has contributed to halting the price increase for gold, and any eventual cutting of interest rates could once again provide a stimulus for precious metals prices.

Frank’s experience covering the commodities markets spans 22 years, with a particular specialism in metals, carbon and energy markets. He has worked as a senior editor for S&P Global Commodity Insights (formerly Platts) and before this, at ICIS-LOR, a part of Reed Business Information (Reed Elsevier), where he covered the petrochemicals markets from 2003 to 2005.

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Bitcoin Bulls Rejoice: Pundit Names 3 Key Reasons Why BTC Price Will Tap 150000 This Year

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Bitcoin Bulls Rejoice: Pundit Names 3 Key Reasons Why BTC Price Will Tap $150,000 This Year

By Brenda Ngari – February 21, 2024

Bitcoin recently crossed the $50,000 mark, regaining the $1 trillion market capitalization for the first time since Dec. 2021. The big question now is, when will BTC hit a new all-time high?

Tom Lee, a prominent figure in the crypto community, has identified three major factors he believes will drive Bitcoin to the coveted $150,000 price tag in 2024.

BTC Rocket Fuel: Three Catalysts To Propel Bitcoin Higher

Tom Lee, renowned for his optimistic outlook on Bitcoin, has confidently posited that BTC is primed to hit six figures this year. In an interview with CNBC’s Squawk Box, Lee highlighted three catalysts he thinks will propel BTC to $150,000.

The first one is already here: spot BTC exchange-traded funds (ETFs). These investment vehicles allow investors to gain exposure to Bitcoin without the need to purchase or store the crypto asset directly. After a decade of denials, the U.S. Securities and Exchange Commission (SEC) finally approved nearly a dozen spot BTC ETFs in a historic move.

According to Lee, spot ETFs will gobble up Bitcoins from the market, bringing a steady inflow of non-speculative investment for the first time in Bitcoin’s history. Demand for these new products will light a fire under the industry’s flagship cryptocurrency’s bulls.

The second catalyst is the impending Bitcoin halving in April. The quadrennial event effectively halves the new supply of BTC entering the market each day. Theoretically, fewer Bitcoins in circulation means that the value of the cryptocurrency will soar with demand amid a supply shock.

The final important factor likely to propel Bitcoin prices higher is the benchmark interest rates. There is a growing consensus that U.S. Federal Reserve officials will start cutting rates in 2024. Lower interest rates are a boon to risk assets like Bitcoin, Lee elaborated, contributing to a potential rally.

Lee’s prognostication comes days after “Rich Dad Poor Dad” author Robert Kiyosaki made a similar super bullish forecast on the price of Bitcoin. As reported by ZyCrypto, Kiyosaki said he anticipates Bitcoin to hit $100,000 by June 2024 — which is just two months after the miner rewards halving.

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.

The original article written by Brenda Ngari and posted on ZyCrypto.com.

Article reposted on Markethive by Jeffrey Sloe

** Loans, secure funding for business projects in the USA and around the world. Learn more about USA & International Financing at Commercial Funding International. **

Tim Moseley

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