gold

US Dollar Slump Incoming: Bank of America Sees ‘Death Cross’ as Confidence in Gold Rises

09/07/2020 by Idelto Editor

The US dollar is increasingly being viewed in a negative light by investors. Bank of America analysts are seeing a “death cross,” a bearish technical formation suggesting that a period of dollar weakness is coming. Meanwhile, confidence in gold has been rising.

Investors Losing Confidence in US Dollar

Investors are increasingly viewing the U.S. dollar in a negative light amid the resurging covid-19 pandemic and the prospect of improving growth abroad, such as in Europe.

Analysts at Bank of America Global Research explained on Wednesday that a decline in the dollar earlier this week has set off a bearish technical formation known as a “death cross” in the USD Index DXY. This occurs when the 50-day moving average crosses below the 200-day moving average. Reuters conveyed that according to the bank:

Past occurrences of the death cross have been followed by a period of dollar weakness eight out of nine times since 1980 when the 200-day moving average has been declining, as it is now.

Moreover, the dollar index fell 6% from its recent highs, the news outlet stated, adding that net bets against the dollar in futures markets are near their highest level since 2018. While the dollar has been seen as a safe haven for investors, its drop to two-week lows on Wednesday shows reduced safe-haven appeal, CNBC noted.

Some investors are also factoring into their dollar outlook criticism over the U.S. government’s response to the coronavirus crisis, protests over racial inequality, and President Donald Trump losing support months before the Nov. 3 presidential election. Analysts at TD Securities told Reuters that the dollar could also suffer if U.S. lawmakers fail to extend some stimulus programs for businesses and families that will soon expire. Recently, the firm cut its outlook for the dollar’s performance against a broad range of major currencies.

In contrast, some investors believe Europe could have greater success in containing the covid-19 pandemic, which could result in accelerated growth in the region. Shaun Osborne, chief FX strategist at Scotiabank, told the publication: “Clearly at this point, European Union countries have made more progress than … the U.S. — where economic trends are lagging noticeably.”

Meanwhile, confidence in global stock markets and gold is strengthening. Edward Moya, a New York-based senior market analyst at OANDA, said: “Investors are growing more confident that this stock market rally is not going to end any time soon … And that’s pretty much based on expectations that you’re going to continue to see a strong global stimulus response over the coming weeks and months.”

Analysts are also bullish on gold. On Wednesday, gold prices soared above the technical level of $1,800 per ounce for the first time since 2011, CNBC detailed, adding that “analysts say the metal’s rally is just getting started.” Besides gold, some investors have also expressed rising confidence in cryptocurrency, particularly bitcoin, such as Galaxy Digital CEO Mike Novogratz. However, gold prices retreated Thursday while the dollar rallied, coinciding with the Supreme Court ruling that a New York prosecutor can obtain Trump’s financial records.

Where do you think the US dollar is headed? Let us know in the comments section below.

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Renters Threaten US Real Estate Market, 20 Million Americans Face Eviction

08/07/2020 by Idelto Editor

The aftermath of the coronavirus-provoked business shutdowns in the United States caused a number of market observers to focus on the U.S. real estate and rental markets. As the federal moratorium on evictions reaches its expiry, a recent Aspen Institute report reveals that 20 million renters or around 20% of 110 million American citizens who rent, will possibly face eviction by September.

Over a week ago, news.Bitcoin.com reported on the pending U.S. real estate crisis, as last month’s data had shown 4.3 million mortgage delinquencies, while commercial properties have also started to sink in value as well. American citizens, economists, and market analysts have been worried about the rental and mortgage sector ever since Covid-19 made its way to the United States.

Now the latest findings from the Aspen Institute’s recent report indicate that homeowners who rent are going to feel more pain in the coming months. The report estimates that roughly 20 million tenants could face evictions at the end of September, and the findings blame issues on the post-Covid-19 economy.

“20 million renters are at risk of eviction; policymakers must act now to mitigate widespread hardship,” explains the Aspen Institute’s authors Katherine Lucas Mckay, Zach Neumann, and Sam Gilman.

The U.S. has around 110 million renters nationwide, and the Aspen Institute’s numbers are dependent on factors like the unemployment rate, cost of living, and the average American’s savings.

Another reason for the possible displacement stems from the federal moratorium on evictions expiry, which banned evictions in certain types of housing units up until July 25. Some of the local government enforced moratorium measures on the county level have expired in June. Moreover, a number of economists and analysts believe that the evictions will start to disrupt the $16 trillion U.S. commercial real estate market.

A few of the stricter American states have begun opening certain types of businesses in phases, as New York for example recently entered Phase 2, which allowed a number of different businesses to begin operating again. Other strict states, specifically in the Northeast are entering Phase 3.

States like Massachusetts will not allow Phase 4, which includes businesses like nightclubs and bars, until at the very least therapeutic action or a vaccine is available according to Governor Baker. These nationwide job losses, broken up by state-enforced phases, will affect the economy and have a domino effect on landlords who rent to tenants in the United States.

“I think it’s going to be a hail storm out there,” Jeffrey Citron, from the law firm Davidoff Hutcher & Citron LLP said about the situation. “And I think, in most instances, it’s probably in the best interest of landlords to sit down and work with their tenants,” he added.

Despite the data from the Aspen Institute and the moratorium expirations, a number of real estate visionaries think ‘things will be fine,’ thanks to another round of government stimulus, otherwise known as the Paycheck Protection Program (PPP).

One particularly hard-hit real estate and rental market will likely be New York and last Sunday, the U.S. government revealed the names of certain businesses that benefited from PPP. Reports say “multiple New York City real estate companies have locked down funds from the Paycheck Protection Program.” The stimulus funding from the federal government ($650 billion nationwide) could help rental and real estate markets fend off disaster.

In the media, Covid-19 has been a great excuse for the federal government to print money on a whim, and many Americans still believe it will help the economy. The biggest weight on commercial, multi-family, and single-family real estate will be the unemployment rate, which will lead to nationwide evictions. While certain investments like gold and a myriad of cryptocurrencies have weathered the storm, many investors think that real estate is an extremely risky investment right now.

What’s worse is, even with the strict state-enforced phase restrictions, “Shark Tank” investor Kevin O’Leary says that U.S. businesses are using “the pandemic as a cloak.” Essentially, O’Leary stressed on Wednesday’s “Squawk Box,” American companies wanted to relieve these employees well before the Covid-19 outbreak.

“They wanted to do this anyway, and they’re doing it under the cloak of, ‘Gee, I can’t open so I’m just going to do it,’” O’Leary said. “Their jobs will never come back. This is great for earnings in the S&P. It’s not great for employment.”

What do you think about the U.S. housing and rental market going forward? Let us know what you think about this subject in the comments section below.

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US Real Estate Market Crisis: 4.3 Million Mortgage Delinquencies, Commercial Properties Sink in Value

27/06/2020 by Idelto Editor

The U.S. economy continues to look bleak as the American citizens and small businesses nationwide struggle to keep up with the government’s rules toward Covid-19 guidelines. In just 13 weeks, over 45 million Americans filed for unemployment benefits and many citizens cannot pay their mortgages. Numbers stemming from last month’s property data indicates that about 4.3 million Americans didn’t pay their mortgage notes.

While precious metals like gold and silver have done well, and crypto assets have held decently, real estate and property statistics have tumbled. The government in America has continued to ravage the U.S. economy by inducing a number of lockdown rules and shutting down businesses of all shapes and sizes.

The unemployment rate is practically parallel with the numbers from the Great Depression as 45.7 million are out of work. And that number only accounts for Americans who can file as members of the gig economy and other types of workers cannot collect.

Additionally, the extra $600 extra from the CARES Act unemployment benefits will end soon. “The (Federal Pandemic Unemployment Compensation) $600 can be paid for weeks ending no later than the week ending prior to Friday, July 31, 2020,” the U.S. Department of Labor told the public. “For all states except (New York), that is Saturday, July 25th. New York’s end date is Sunday, July 26th.”

With all the lockdown orders and business shutdowns, it’s put the U.S. real estate industry in jeopardy as home sales and commercial property values have plummeted.

This week it was reported that 4.3 million U.S. citizens didn’t pay their mortgages in May and it’s a huge spike. The number is up over 2 million since the end of March and the delinquency rate is reaching a point not seen since the 2008 subprime mortgage crisis. Average citizens can’t pay their notes and apartment rentals in all major cities are not being contracted for the fall months.

Reports also show that the Covid-19 induced lockdown economy is like a wrecking ball smashing the $17 trillion U.S. commercial real estate market. The fact of the matter is real estate is not selling at all like it was 13 weeks prior to the virus outbreak.

Even office rentals are feeling the heat as a recent Morgan Stanley report disclosed dire pricing power losses for landlords. Morgan Stanley also expects the vacancy rate to rise all the way until 2024.

Barry Sternlicht from Starwood Capital detailed that he predicts office buildings to lose 40% of value, rents dropping extremely low, and a third of hotels going bankrupt in New York City.

The National Association of Realtors explained on Monday that “existing-home sales occurred at a seasonally adjusted annual pace of 3.91 million,” which is the lowest in over a decade. Sales that stem from pre-owned houses dipped by 9.7% in May.

Many economists are fixated on the real estate market because they believe it could explode like it did after Lehman went bankrupt. Amid the telltale signs of a worsening U.S. real estate market, American first time home buyers (FTHBs) have been focused in on the real estate dips too.

As any American can see by scrolling through Zillow or any property listing platform that prices are being slashed left and right. Genworth Mortgage Insurance has published a report that shows FTHBs are taking advantage of the lows. The report shows that FTHBs didn’t do well in April but in May numbers were impressive.

Despite the gloom and doom from headlines that indicate 4.3 million Americans haven’t paid their mortgages, some realtors are still very optimistic.

“Home sales will surely rise in the upcoming months with the economy reopening, and could even surpass one-year-ago figures in the second half of the year,” said Lawrence Yun, chief economist for the National Association of Realtors (NAR), in the organization’s report published on Monday.

Another thing analysts are watching is pending home sales as there have been a number of homes sitting in limbo. It’s quite possible that due to the lockdown and business shutdown guidelines that many people who were about to purchase a home 13 weeks ago cannot now. Analysis shows that a number of transaction closings, settlement, and pending sales nationwide continue to remain frozen as well.

What do you think about the U.S. real estate market? Let us know in the comments below.

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CryptoAltum, The CFD Trading Platform With 1:500 Leverage

23/06/2020 by Idelto Editor

CryptoAltum, a popular MT5 platform, executes trades using market execution with all trades filled at the best available price in the market. The company uses Fill or Kill orders meaning orders are filled entirely at the best available price, with no partial fills and a 100% execution rate.

Fills All Trades Automatically

The company fills all trades automatically with no dealing desk intervention. Traders can enter and liquidate positions at any time. The maximum amount of open orders users can have on their accounts include having up to 200 open trades and 30 pending orders, providing your overall exposure does not exceed our maximum of USD 1,000,000. Margin call is at 150% and stop out level is 100%.

The company’s servers are located in London. The company also uniquely has a 24/7 support team available on Whatsapp, Messenger, Telegram, and Line.

CryptoAltum also differentiates itself by providing full market depth available on MT5 for all instruments. To further demonstrate pricing transparency, tick data requests are available from the CryptoAltum risk team. The platform also not only provides exposure to cryptocurrencies but also to Forex, Gold, and Indices.

Professional traders may also note that the minimum lot size and maximum lot size for each crypto trading pair varies as does the volume limit. There are some interesting crypto pairs that users can bet against for example XRPEUR and BNBJPY.

For crypto pairs involving the prices of BTC, XRP, DASH, LTC, BCH, ETH, EOS, and XMR, there is a maximum limit of $1,000,000 per trading pair and as the volume in USD increases, the margin requirements increase as well. For example, for volume less than $10,000, margin is 0.2% but as volume surpasses $200,000, the required margin rises to 5%. The 1:500 leverage that CryptoAltum offers is the highest leverage offered globally on CFD products.

For crypto pairs that involve ADA, BNB, BSV, and TRX, the max limit per crypto pair is lower at $300,000 and the volume limits for increased margin are also lower with any volume that surpasses $80,000 requiring users to put up 5% margin as opposed to 0.2% margin on the lower end.

Fees that users will face will be on financing long or short positions and will be calculated by the lot size multiplied by the financing points which change from the liquidity providers on a daily basis. Cryptocurrency financing fees are applied every four hours, and daily for FX and indices. The longer that positions remain open, the higher the Financing rates. The historical buy and sell premiums per lot on cryptocurrencies range from -.0114% to -.0186%.

Main Takeaways

CryptoAltum, based in the Republic of the Marshall Island, does not require KYC or employ any onchain surveillance technologies, assuring traders of privacy and anonymity. This is useful for even novices who may want to utilize the platform to gain exposure to CFD’s without revealing personal information.

The 1:500 leverage offering means a minimum 0.2% margin whereas other competing platforms such as TradeDirect365 may require 40% margin requirements for cryptocurrencies. This allows traders who have the right market intuition to make higher profits on trades that they have conviction on that end up panning out.

Overall, CryptoAltum has interesting features in its wide variety of cryptocurrencies, Forex, gold, and Indices markets, its transparent fee structure, and its willingness to offer traders the highest leverage on their trades.

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Analysts Say Bitcoin Breakout Imminent: Silver-like Suppression, $5 Trillion in Cash Could Flow Into BTC

18/06/2020 by Idelto Editor

A number of venture capitalists and macro investors believe bitcoin’s price will break out soon following suit with gold’s recent climactic rise. Dan Tapeiro, cofounder of Gold Bullion International, thinks that $4.6 trillion in cash sitting on the sidelines right now, could very well flow into precious metals and crypto-asset markets. Moreover, other investors have noted that bitcoin is following the same trend silver did in 12 years ago.

Close to $5T in Market Money Accounts Could Flow Into Bitcoin Markets

Everyone has been watching digital currency markets rough the storm caused by the Covid-19 outbreak, and government-induced business shutdowns. At press time, the entire market valuation of all 5,000+ digital assets is still well over a quarter of a trillion U.S. dollars. Just recently, the cofounder of Gold Bullion International, Dan Tapeiro, discussed a study published by the research firm Refinitiv Lipper. According to the study, there is close to $5 trillion ($4.6T) in money market accounts otherwise known as liquid cash.

Tapeiro thinks that cashflow, which is at an all-time high, could easily flow into gold and bitcoin markets. Traditionally, when stocks, equities, and common commodities are plummeting, the liquid cash in money markets flow into safe-haven assets. Tapeiro tweeted on Wednesday:

Record— Almost $5 trillion dollars sitting in cash. Dash to cash most surprising because it all yields near [zero]. Huge opportunity cost vs equity, gold, bitcoin— Such great negativity/fear not usually present at equity [market] tops. Wall of worry growing taller by the day.

Tapeiro has been talking about bitcoin and gold for quite some time now, and he can be seen bolstering the subject in many videos. A number of others agreed with Tapeiro’s statements on Twitter, as one person said: “If the dollar does crash at some point, it only makes sense that people will start exploring alternative and more superior forms of money and stores of value.”

Bitcoin’s Silver Lining

In addition to the Gold Bullion International cofounder’s opinion, another analyst believes BTC is currently suppressed, much like silver was in 2008 all the way until the price of silver spiked in 2012.

The popular crypto trader Macnbtc told his 33,000 Twitter followers that “someone said [to] ‘check how [the] price of Silver was suppressed’” in a recent tweet. Macnbtc stressed:

Macro this looks bullish AF, no denying that. But for now, let’s just chill. Give me a monthly or even a weekly close over $10,100 and I will be a bull.

The trader John Morgan also told his 15,000 Twitter followers that he believes BTC is on a relentless path toward the $10K zone, despite the number of attempts so far.

“BTC price analysis: despite downside crack, BTC/USD is relentless on it’s $10,000 journey [and] bitcoin whales spike nearly 10%,” Morgan explained in a recent tweet.

At the time of publication, most of the $265 billion market cap belongs to the top five coins; BTC, ETH, XRP, USDT, and BCH. There’s around $13.55 billion today in global swaps (volume is down -11%), and bitcoin (BTC) is trading between $9,300 to $9,450 per coin. Ethereum is trading for $234, XRP is $0.18, and bitcoin cash (BCH) is $238 per unit.

What do you think about Dan Tapeiro, Macnbtc, and John Morgan’s analysis? Let us know what you think in the comments below.

The post Analysts Say Bitcoin Breakout Imminent: Silver-like Suppression, $5 Trillion in Cash Could Flow Into BTC appeared first on Bitcoin News.