Bitcoin’s rise may be driven by a drying up of supply as much as it is driven by increased demand.
This is because Chinese miners are struggling to sell their cryptocurrencies in ways that would quickly provide them with the money they desperately need in the face of the government’s crackdown on local exchanges..
Singapore-based trading company QCP Capital noted on its Telegram channel: “The lack of supplies has very well fueled the trend of this rally, without any of the big selloffs typical of mining activity in the past.”.
QCP’s explanation for the rise is simpler and less exciting than some of the other popular explanations, which point to macro factors such as a demand to hedge against monetary and financial indiscipline, an impending rise in inflation throughout the developed world, and a search for yield as the main causes of higher prices..
Miners work mostly with cash and dump their bitcoin holdings into the market almost daily to finance their expenses, especially electricity costs, which have to be paid in the local currency (the yuan, in the case of those who work in China). This makes miners permanent sellers, and their actions affect the market price.
However, Chinese miners, who control more than 70% of the bitcoin hash rate or mining power, face challenges in liquidating their cryptocurrency holdings for cash because many of them find their bank accounts and cards frozen as part of the Chinese government’s crackdown on the front. National Communications fraud and money laundering through cryptocurrency deals.
Currently, 74% of miners are having a hard time liquidating their holdings to cover electricity expenses, and he is a Chinese cryptocurrency watchdog with the name Wu Blockchain mentioned in his Weixin blog, according to QCP Capital. Thomas Heller, former global business manager at F2Pool mining pool and chief operating officer at mining and media company HASHR8, confirmed the plight of Chinese miners earlier this week, saying it was currently a “challenge” for Chinese miners to convert bitcoin and peg into cash..
Read more: Cryptocurrency miners in China struggle to pay energy bills as regulators pressure OTC offices
The industry has been suffering since the Chinese authorities began freezing bank accounts in June and the situation has worsened in the past two months.
“Mining pools were selling large chunks of bitcoin in early September through exchanges, but this was hastily halted as the last exit routes off the remaining slopes were affected by the arrest of the heads of large exchanges like Star Xu and other [over-counter] brokers,” QCP Capital said.
The sale of miners drove bitcoin down, from nearly $ 12,000 to $ 10,000, according to QCP Capital.. However, the offer dried up after OKEx’s cryptocurrency exchange accounts were frozen in October.
This, combined with increased institutional participation or heavy buying in the spot market, created a supply crunch, which allowed for an exaggerated bullish move.
Bitcoin is currently trading at $ 17,700, which is a gain of over 140% since the start of the year. Prices are a short $ 2,500 from a record high of around $ 20,000 reached in December 2017.
Sharp price gains are often accompanied by a big jump in the funding rate, which is the mechanism used by exchanges that offer perpetual bids (futures contracts without expiration) to balance the market and direct the perpetual price towards the spot price.
Positive Funding Rate, or long long positions, when standing currencies are traded at a premium over the spot rate, indicating stronger buying pressure. Instead, when the perpetual currency is traded at a discount from the spot market, the funding rate is negative and pushes the short-funded price for the long positions..
A higher funding rate is widely seen as a sign of an excessive upside and often paves the way for a price decline. For example, the funding rate increased from 0. 008% to 0. 078% in the first half of August as Bitcoin rose to a multi-month high above $ 12,450. The cryptocurrency fell to $ 9,800 by the second week of September.
This time, the funding ratio remained steady below zero. 010%, which means that the cost of holding long positions is still much lower than it was in mid-August. Thus, a targeted correction could continue to be elusive, allowing further upside in the near term, and possibly above record levels.
According to QCP Capital, the spot market imbalance driving the price has allowed the leverage financing market to stabilize throughout the recent upward move.
Many electric car stocks have had a great year, and as the world progresses towards a greener economy, it is clear that the sector is only just getting started
(Bloomberg opinion) – in an anecdote often attributed to President John F.. Kennedy’s father, the moment he learned to emerge from the stock market boom of the 1920s was when he began receiving stock advice from his shoe-shine boy.. You can make a similar argument about the moment when the leading stock indices finally give their blessing to an upcoming stock. The newest and most dramatic example of that will happen next month, when S&P will accept 500 Tesla Inc.. Through the club doors for the first time. Take Yahoo Inc. Typical dotcom business found its way into the US major stock index in December 1999, just four months before the crash in internet stocks that took hold of. s. More than a decade to recover from it. New admissions in the mid-2000s were rich in real estate plays such as CBRE Group Inc. , Boston Real Estate Corporation. And Kimco Realty Corp. Then these companies were hit hard by the mortgage and financial crisis of 2008. Will this time really be different? Certainly, Tesla appears on a more solid footing than it was two years ago, when regulators were leveling fraud charges against Elon Musk and the company was, in his words, “from number one weeks” away from bankruptcy.. Predicted to rise to S&P 500 since its second-quarter results posted profits for a fourth consecutive period, and passed one critical benchmark that keeps a lot of startups out of the index. If we look at it from a more nuanced perspective of operating criticism, it works better. $ 2. 4 billion inflows in the third quarter alone were more than total operating cash in the contract through September 2019. The auto industry as a whole appears to be performing remarkably well in the grip of Covid-19, as the S&P Automotive and Parts Sub-Index on Monday reached its highest level in more than two years.. Tesla is already the eleventh company by market cap on U. s. Exchanges, worth about the world’s three largest carmakers, Toyota Motor Corp.. , Volkswagen AG and General Motors. Put together. Ordinary investors are more likely to see their index tracking funds turn them into indirect Tesla shareholders whether they like it or not.. So what don’t you like? The long-awaited question is about evaluation. Tesla has passed the point at which it is in imminent danger of disappearing, but it is still very difficult to justify the price put on the stock. Returns on equity are just a sub-index of cars. Even analysts estimate that they will rise by 20% in the coming years will only make them in line with levels that were, until recently, considered normal levels for an industry that has not been favored by investors for years.. This kind of pedestrian financial performance is hard to match with Tesla’s expensive inventory. The average price of S&P 500 components is 20. 89 times mixed 12-month earnings. Tesla’s price-earnings ratio is 113, which is enough to give it the richest rating on the index after Under Armor Inc.. The Boeing Company. And SBA Communications Corp. Comparing Ebitda to Enterprise Value, only six companies have ratings higher than Tesla’s 49. 51 multiple times. It’s very hard to see how Tesla will be able to justify these ratings in the long run. This is the case even if you agree with the most optimistic analysts and assume that the company will generate about $ 10 billion per year in net income by 2022 or 2023, compared to $ 556 million over the past 12 months.. Based on these numbers, a price-earnings multiplier of 20 times would produce a business that is worth less than half of Tesla’s current market value of $ 387 billion.. This is the real lesson for newcomers to the big indicators. Per Yahoo or AOL Inc. Which turns into an example of market surplus, there is Kimco or CBRE who survived but not regaining the magic that drove him into the spotlight.. The 1999 Yahoo hype eventually fell victim to a better search technology developed by a little-known startup called Google.. The race to dominate electric cars is rarely less competitive. This column does not necessarily reflect the opinion of the editorial staff or Bloomberg LP and their owners. David Fickling is a columnist for Bloomberg Opinion covering commodities, as well as industrial and consumer companies. He has worked as a reporter for Bloomberg News, Dow Jones, the Wall Street Journal, the Financial Times, and the Guardian. For more articles like these, please visit us at Bloomberg. Com / opinion Subscribe now to stay on top with the most trusted business news source. © 2020 Bloomberg LLC. s.
Former Treasury Secretary Lawrence Summers said that Joe Biden should target the richest taxpayers not by raising taxes but by imposing more..
Investors who have held the shares in the past three years have generally made some big gains. In fact, the total return on SPDR S&P 500 (NYSE: SPY) since May 22, 2017 is 61%.. On that day in history, the Malaysian airline Malindo Air flew the world’s first commercial flight of Boeing (NYSE: BA) 737 MAX.. . Boeing 737 Max Heydash: Boeing investors had high hopes for the 737 Max, but it didn’t take long for the red flags to appear. On the day of the 737 MAX’s maiden flight in 2017, Boeing shares were trading at around $ 184. Boeing shares soared in the first year in which the 737 Max was in operation, and peaked at around $ 394 in October 2018 – around the time of the first crash of the Max.. in October. On September 29, 2018, Lion Air Flight 610 crashed in the Java Sea, killing 189 passengers and crew.. At the time, investors likely saw the crash as an isolated incident. Boeing shares initially fell to $ 296. 61 after crashing before ripping back up to an all-time high of $ 446. 01 in early 2019. On March 10, 2019, Ethiopian Airlines Flight 302 crashed, killing 157 people. Three days later, Team U. s. The Federal Aviation Administration officially established the 737 MAX based on safety concerns. Despite grounding, Boeing stocks initially held up relatively well. The stock is down through 2019, but remains above $ 320 by 2020. Boeing in 2020 and Beyond: Boeing traded around $ 350 in early 2020 before the COVID-19 market crash, sending Boeing shares into a downward spiral.. The stock fell to $ 89, and Boeing announced that it would suspend dividends and share buybacks due to the crisis. Air travel rates are down by more than 95%, and Boeing customers have had to cancel orders, drastically reducing the company’s backlog. In November. At 18, the Federal Aviation Administration (FAA) finally removed the 737 MAX to fly again, but the pandemic still lingers. The 737 MAX era has been a huge disappointment to Boeing investors so far. In fact, the $ 1,000 invested in Boeing stocks on the day of the first commercial flight of the 737 Max in 2017 would be worth about $ 1,240 today, assuming the profits are reinvested.. Looking to the future, analysts expect more struggle for Boeing in the next 12 months. The average target price out of the 23 analysts covering the stock is $ 174, which indicates 18. 9%, down from current levels. See more of Benzinga * Click here for option deals from Benzinga * Nearly two years later, the Federal Aviation Administration says Boeing 737 MAX can carry passengers and fly again * Boeing Option Trader M is betting on a 10% increase (C) 2020 Benzinga. Com. Penanga does not provide investment advice. All rights reserved.
Oil stocks have always been a good place for investors to find high yields of dividends. Reduced oil demand and production in 2020 lowered oil inventory shares, leading to higher dividend yields.. The question could be whether the profits are sustainable. Here is a look at three oil stocks distributed for investors to consider. ExxonMobil: One of the largest oil companies in the United States. s. And the world is Exxon Mobil Corporation (NYSE: XOM). The company’s dividend yield was 10% in September, with stocks dropping significantly in 2020. A 9% equity return and could be a long-term bet on a recovery in oil prices – and Exxon’s history of raising profits. The company saw a revenue drop of $ 197. $ 8 billion to $ 135 billion in the first nine months of 2019 compared to the same period in 2020. The company posted a net loss of 18 cents a share in the third quarter, down from the previous year’s profit of 68 cents per share, but an improvement over a loss of 70 percent in the second quarter.. The dividend yield was ExxonMobil 5. 8%, 7. 9% and 7. 9% at the time of the first three quarterly payments in 2020. In 2019, the quarterly dividend yield was all 5% or less. Analysts questioned whether the company could continue to pay high dividends. The company kept its quarterly payment of 87 cents for the current quarter when some believed it would be cut. Related links: Stock Wars: Exxon Mobil Vs. Nextera, A Battle Of Old Vs / New In EnergyChevron: Shares of Chevron Corporation (NYSE: CVX) are down 28% in 2020. The company now has a 6% dividend yield.. The company posted a loss of $ 207 million in the third quarter, but showed improvement with capital spending down 48% and operating expenses down 12% year-over-year.. . Chevron’s year-to-date revenue is $ 69. $ 6 billion, down from $ 105. 3 billion in the previous year. The acquisition of Noble Energy closed in October, which Chevron said would boost the company’s portfolio. A renewable natural gas joint venture, CalBioGas, also started production in the third quarter, which could be an area of growth that investors see.. Chevron usually raises its profits at the beginning of each year, which means that the next quarterly report will be the report in which investors are watching for an increase in profits, a decrease in profits, or the status quo. Kinder Morgan: S&P 500’s largest energy infrastructure company is Kinder Morgan Inc (NYSE: KMI). The company is linked to oil and natural gas prices. Kinder Morgan has 83,000 miles of pipelines and has 147 terminals that help transport natural gas, gasoline, oil and carbon dioxide.. Kinder Morgan’s third-quarter revenue was $ 2. $ 9 billion for $ 3. 2 billion in the same period of the previous year. Earnings per share were 21 cents in the third quarter compared to 22 cents the previous year. Kinder Morgan cut her earnings in 2016, but has been raising them every year since she is currently 26. 25 cents per quarter. In its third-quarter earnings statement, the company said: “Once we complete the 2021 budget process, the board of directors will determine the dividends for the fourth quarter 2020 and the dividend policy for 2021.. . Kinder Morgan shares are down 34% in 2020. While some oil inventories recovered in the past month, Kinder Morgan shares rose 9%.. See more from Benzinga * Click here for option deals from Benzinga * Joyy Plummets On Muddy Waters Short Report, Fraud Claims * Arrival, EV bus maker rivaling Rivian, becomes public via SPAC (C) 2020 Benzinga. Com. Penanga does not provide investment advice. All rights reserved.
Once upon a time (way back in early 2019), Aurora Cannabis (ACB) was a dominant force in Canadian cannabis. Boasting an enormous “agricultural footprint” – hundreds of thousands of square feet of growing area that produces hundreds of tons of weeds annually – Aurora controls 20% of the overall Canadian hemp market. However, Aurora doesn’t appear to be making a profit. I lost $ 224 million in fiscal year 2019, then $ 2. 4 billion in fiscal year 2020. Hoping to stem the tide of these losses, Aurora has begun to focus its efforts on selling premium marijuana blend at higher profit margins.. Obviously, that didn’t work, so in 2019, it shifted its strategy again to targeting the “value segment” – the mass market – which also didn’t work.. Recently, Aurora has started to put the focus back on premium blends. And how is that done? Here’s a clue: In FY 2021 Q1 (reported last week), Aurora suffered: * a 10% drop in quarterly sales to $ 51 million * a net loss of $ 81 million * and $ 93 million in free cash flow Passive. Looks like it’s time to reset another business model? According to GLJ Research analyst Gordon Johnson, this is exactly what happens in Aurora Cannabis. Johnson notes that when calculated in Canadian dollars, Aurora’s fiscal revenue for the first quarter of 2021 is CAD 67.. $ 8 million exceeded analysts’ forecasts for $ 63 CAD. 9 million. However, the company suffered a “steep finish line” when it reported a loss of C $ 0. 93 – more than twice the C $ 0. 46 which analysts expected to lose. Cash burning has also accelerated – up nearly 50% sequentially, to $ 124 CAD. 3 million. Despite this hugely bad quarter, Johnson notes that the apparent electoral victory of Joe Biden as Yu. s. The president-elect has investors betting on U. s. Legalization of marijuana to transform the fortunes of the marijuana industry. So far, November alone has pushed Aurora Cannabis stock up nearly 73%, and in Johnson’s view, there is only one way to play the rally in marijuana stock: Sell. Or even short selling – because that stock will reach $ 0, says Johnson. (To see Johnson’s track record, click here) There are at least three good reasons to follow this advice, according to the analyst.. The first, obviously, is that Aurora Cannabis doesn’t seem to discover what she wants to be when she gets older – but whatever that is, it’s almost certain to be a company that loses money in its hands.. . One reason for this is that the oversupply of marijuana in the mass market, apparently, has “recently [ed] turned into the premium part where everyone focuses now, [like] the high-end space [which Aurora prefers again] now has a problem” too. Worse yet for all marijuana investors, though – not just Aurora Cannabis – Johnson believes they are completely misreading the legislative position surrounding hemp.. For one thing, “federal nationalization of the United States” ([sic] – it certainly means “legitimization” – “highly unlikely” even under President Biden, with. s. The Senate is still firmly in Republican hands. Second, even if marijuana legalization is passed in the United States, “except for a change in Canadian national law,” says Johnson, “the ACB cannot operate legally” in the United States.. Aurora Cannabis stock apparently can’t be broken. With a rating of “nearly 750 times FY 21E,” it probably isn’t worth it, according to Johnson. How does Johnson’s bearish stance weigh against street talk? There seem to be other voices not ready to bet the cannabis player too. Aurora Cannabis currently has a pending consensus rating based on 0 purchases, 12 acquisitions and 3 sales. At $ 7. At 39, the average target price indicates that stocks will remain range-bound for the foreseeable future. (See Aurora Cannabis stock analysis at TipRanks). To find good ideas for trading hemp stocks with attractive reviews, visit Best Stocks to Buy from TipRanks, a newly launched tool that unites all the stock insights for TipRanks. Disclaimer: The opinions expressed in this article are only those of a distinguished analyst. The content is intended for informational use only. It is very important to do your analysis before making any investment.
Shares of Fuel Cell Energy. 33 rose. 0% were in very active trades on Wednesday afternoon, putting them on the right track more than doubling in four days, despite no news from the company.. The height of the arrow is 11. 3% on Friday, up 31. 4% on Monday and climb 10. 0% on Tuesday, it has now risen to 114. 1% during her current winning streak. This is the best four-day run for fuel cell technology and the power generation company’s shares since it tripled (up from 205. 4%) during the four days ending in December. 31, 2019. Volume has increased during the current winning streak from 46. 0 million shares on Friday, to 96. 3 million shares on Mondays and 150. 4 million shares on Tuesday. On Wednesday, the volume was 129. 9 million posts with nearly three hours remaining before the closing bell. Fuel Cell did not immediately respond to a request for comment. The company’s last press release was in October. 9, when the company announced a $ 8 million prize from U. . s. The Department of Energy designs and manufactures an electrolysis platform capable of producing hydrogen. The stock rally comes amid growing investor interest in renewable energy stocks, particularly since the presidential election, as President-elect Biden has said he is looking to move away from fossil fuels.. Fuel cell inventory increased by 136. 2% since November. 3, after falling 93. 0% over the past four years. In comparison, S&P 500 has gained 7. 3% since the election. Separately, report from Yu. s. The SIF Foundation showed that investments in Environmental, Social, and Governance (ESG) factors now total around $ 17. 1 trillion, or about a third of the total U. s. Property under management supervision.
Nio supercharged stock is fueling demand for electric vehicles. Here’s what the basics and technical analysis say about buying Nio stocks now.
How 401 (k) works after retirement depends on your age, whether you are withdrawing funds, or if you allow them to continue accumulating profits..
Weather on Wall Street can make your head spin but now we have brief forecasts. Also, 16 stocks are cheap to consider buying, rotating shares for growth and value. Every day you hear analysts talk about headwinds and tailwinds until your head turns – so let’s try to put our forecasts together, Jim Kramer says..
The best dividend stocks give a boost to income and retirement portfolios. These stocks offer strong returns and strong performance.
The four members of Congress known as “The Squad” were among the most vocal supporters who pushed President-elect Joe Biden to cancel student loan debt during his first 100 days in office..
Thomas H.. K Junior. , President and CEO of Stock Traders Daily and Portfolio Manager at Equity Logic, returns to Need to Know for a new market call. He says investors will wake up to a difficult reality in 2021.
The drop came after Santa Clara, California, forecast fourth-quarter gross revenue higher than Wall Street forecast, as it bets on strong demand for its graphics chips for gaming consoles and data centers.. Nvidia also beat revenue forecast for the third quarter as revenue from the gaming business jumped 37% to $ 2. 27 billion compared to the previous year, beating FactSet’s $ 2 estimate. 06 billion.
A number of hedge funds sold centers in two pharmaceutical companies in leading the race towards a vaccine against the Coronavirus in the quarter before announcing breakthroughs that led to a rise in their share prices, while a few acquired stakes in companies during that period. Regulatory filings show that hedge funds sold millions of shares in pharmaceutical companies Moderna and BioNtech during the third quarter, losing big gains this month when they both declared their vaccines are more than 94% effective.. Since the end of the third quarter, BioNtech’s stock has jumped another 26%, and Moderna has risen 28%, adding to the three-digit percentage gain and making it among the biggest gainers this year, as the S&P 500 rebounded 60% from its level.. Bottoms in March.
Another electric vehicle company will go public via SPAC Road with a new deal confirmed on Wednesday. The deal: access, prof. K. Electric Vehicle Company, to go public via CIIG Merger Corp (NASDAQ: CIIC). The deal values the company at $ 5. 4 billion, according to CNBC. The access came to $ 3. 5 billion times in January. CIIG Merger Corp is backed by Peter Cuneo, former CEO of Remington and Marvel. The company’s investors include UPS (NYSE: UPS), Hyundai, Kia and BlackRock. Related link: UK electric car maker’s arrival raises Blackrock’s 8 million as it does US plant launch About access: One of the things that Access said sets the company apart from competitors like Amazon-backed (NASDAQ: AMZN) Rivian is Its micro-factories. Access plans to build three or four smaller factories, which are smaller car production lines that can be packaged into existing warehouse properties.. The 20,000 square foot factories cost about $ 45 million. Each micro-factory will have a goal of producing 10,000 electric trucks annually. Reach said it stands out from the competitors because it focuses on the commercial market rather than selling to consumers. The company covers developmental production with full vertical integration. UPS Deal: On arrival a valid deal with UPS for 10,000 electric trucks. The vehicles will be built specifically for UPS, which will aid in vehicle development. “An active investment role in access enables UPS to collaborate in the design and production of the world’s most advanced electric delivery vehicles. UPS chief information officer Juan Perez said when the deal was announced. The capital investment from UPS gives the company early access to access vehicles and the ability to quickly track orders. The arrival UPS electric carts will be used in Europe and North America. What next: Access announced that it will start producing its electric buses in the fourth quarter of 2021 and electric trucks in the second quarter of 2022.. Vehicles will have a similar or cheaper price point than diesel vehicles. CIIG Merger Corp. shares rose 22% to $ 13. 10 on Wednesday. See more of Benzinga * Click here for option deals from Benzinga * Tesla’s S&P 500 listing may move Elon Musk Up Billionaire Ladder * ‘We’re in a race’, Lordstown Motors CEO says Kramer (C) 2020 Benzinga. Com. Penanga does not provide investment advice. All rights reserved.
Tech giant Keith Rapuis announced this week that it will leave Silicon Valley in California and move to Miami, Florida.. .
Before William Barr became President Donald Trump’s choice to lead the United States. s. Department of Justice, such as Caterpillar Inc., a company listed on the Fortune 100, in a federal criminal investigation by the department. Much was at stake for Caterpillar: Since 2018, the Internal Revenue Service has been asking for $ 2. 3 billion in company payments in connection with tax matters are under criminal investigation. A week after Barr was nominated for the attorney general’s position, Washington justice officials told the criminal investigation team active in Caterpillar that no further action had been taken in the case, according to an email written by an agent seen by Reuters..
Pfizer stock jumped in mid-November after the pharmaceutical company said it was “within days” seeking emergency permission for a coronavirus vaccine. But is the stock buying now?
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News – GB – Bitcoin’s rise may be due to the supply crisis in China