India’s forex reserves jumped by $2.975 billion to $619.072 billion for the week ended February 23, the Reserve Bank said on Friday.
In the previous reporting week, the overall reserves had dropped by $1.132 billion to $616.097 billion.
For the week ending February 23, the foreign currency assets, a major component of the reserves, increased by $2.405 billion to $548.188 billion.
Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-U.S. units like the euro, pound and yen held in the foreign exchange reserves.
Gold reserves increased by $472 million to $47.848 088 billion during the week, the RBI said.
The Special Drawing Rights (SDRs) were up by $89 million to $18.197 billion, the apex bank said.
India’s reserve position with the IMF was up by $9 million to $4.839 billion in the reporting week, the apex bank data showed.
India’s forex reserves hit an all-time high of $645 billion in October 2021.
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Happy Friday. It certainly was for the market as a trio of soft second-tier US economic data releases combined to add a dose of dovishness to the market and send the Nasdaq above the 2021 high.
Before the data, some worry was creeping into the market and the US dollar was bid. Comments from Barkin struck a hawkish note and with Waller on the schedule after him, there was some worry about a hawkish turn. Instead, the ISM manufacturing, construction spending and final UMich numbers were all soft and the dollar sank. Then Waller limited his comments to the balance sheet and Goolsbee stayed dovish.
US 10-year Treasury yields fell 12 bps from the highs and broke the important 4.20% level. With that, I would have expect more US dollar selling but that might have been capped by turn-of-the-calendar or US equity buying. The euro and pound managed to recoup yesterday’s declines while the Australian dollar edged modestly above yesterday’s highs before stalling.
USD/JPY declined after the data and finished the week just above 150.00 in what’s going to be an intriguing month for the pair.
Gold closed at the highest level on record, at least spot gold did (futures were close). Oil got above $80 only to finish just below in what was a strong day for commodities.
Bitcoin was lackluster early despite the Nasdaq bid but caught up late to finish within striking distance of the highs of the week. Eyes will be on BTC on the weekend, where it’s generally languished since the ETFs emerged.
SEC v Ripple: SEC Extension Request Fuels Investor Optimism
SEC v Ripple case-related updates garnered investor attention this week.
On Tuesday (February 27), the SEC filed a request to extend the deadline to submit its remedy-related brief by one week to March 22. The filing also requested extensions to the deadlines for Ripple to submit its remedy-related brief and for the SEC to file its reply brief. The court approved the request on Friday, March 1.
The SEC and Ripple are preparing remedy-related briefs. The SEC will argue for a punitive penalty for the unregistered XRP sales to institutional investors. In July 2023, Judge Analisa Torres ruled Ripple breached Section 5 of the US Securities Act for failing to register XRP in sales to institutional investors.
Ripple will cite case law to argue against a punitive penalty. The court will only consider XRP sales to US institutional investors (Morrison v NAB). Ripple may also seek an exemption to Section 5 for XRP sales to accredited investors. The court will also base a penalty on net proceeds from XRP sales to US institutional investors (Liu v SEC), allowing Ripple to deduct expenses.
However, the strength of arguments could hinge on post-complaint activity. Judge Torres could impose a punitive penalty if Ripple continued to breach Section 5 after the SEC filed the complaint.
Nonetheless, investors reacted positively to the SEC request for an extension. On the one hand, the SEC may need more time to consider documents from discovery. On the other hand, the SEC may have no basis to argue for a punitive penalty.
XRP was up 12.24% to $0.6091 Monday (February 26) to Saturday (March 2).
Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
In a recent Bloomberg TV interview, Michael Novogratz, the founder and CEO of Galaxy Digital, forecasted that the flagship cryptocurrency might experience a temporary dip before it surges to new heights.
Novogratz, a seasoned investor in the cryptocurrency space, believes that Bitcoin might retract to the mid-$50,000 range amid a broader consolidation phase after its impressive rally that saw a more than 40% increase this year.
As reported by U.Today, the rally was largely fueled by the successful launch of Bitcoin exchange-traded funds (ETFs).
The digital currency was trading at around $60,700 at the time of the interview, riding the wave of its recent gains.
The consolidation phase
Novogratz described the current market momentum as a “price discovery” phase that was spurred by the introduction of Bitcoin ETFs, which have attracted a new wave of investors to the cryptocurrency sector. This influx of buyers has significantly contributed to Bitcoin’s price surge.
However, Novogratz cautioned that the market’s current leverage levels, particularly among millennials and Gen Z investors who are “chasing highs,” indicate that a correction could be imminent.
“You’ve got a lot of millennials and Gen Z YOLOing it, and they all will get some of that money and a lot of ’em will get wiped out,” he explained.
He pointed out that some investors might profit from the situation, but many could face significant losses if the market were to experience a downturn.
Leverage and marked dynamics
Further delving into market dynamics, Novogratz pointed out the difference in leverage between the bull run of 2021 and the current situation.
He observed that big institutional players are now less leveraged while retail traders are over-leveraged, especially through offshore crypto trading platforms that offer substantial leverage. “The big institutional players have less leverage right now… but retail still loves leverage,” he said.
This scenario, according to Novogratz, sets the stage for potential “washouts,” where the market could see a significant retraction before stabilizing and resuming its upward trajectory.
The crypto mogul warned of the volatility that such leverage can introduce to the market, stating, “You’re going to see this boom-bust in the short run with an overall really positive trend as people just keep deciding to allocate some of their portfolios to Bitcoin.”
The top crypto has reached levels not seen since November 2021, jumping 6.5% in the past 24 hours.
Driven by significant inflows in spot Bitcoin Exchange-Traded Funds (ETFs), the crypto market is enjoying a widespread price rally.
For the first time since November 2021, Bitcoin trades for $60,600, notching a 6.5% price increase on the day. Notably, its market capitalization has added $800 billion since Jan. 01, soaring $1.2 trillion, making it the tenth largest asset on earth.
Ethereum, the crypto market’s second-largest asset, is trading for $3,350, a 22% gain over the past two weeks. ETH has outpaced Bitcoin in February, notching a 45% price increase, versus BTC’s 35%.
Memecoin mania is also settling in, as PEPE soars 44% today, along with Solana-based dogwifhat, which has surged 30%, changing hands for $0.74. Seven of the top 10 memecoins are reaping triple digit gains on the week.
Top gainers today also include Arweave, soaring 42.5%, and TON, which climbed to $2.33, a 22.3% increase on the day.
The crypto industry as a whole has reached a total market cap of $2.3 trillion, up 3.9% in the past 24 hours.
Bitcoin ETF Interest
Driving the price rally is surging interest in spot Bitcoin ETFs.
The nine funds have accumulated more than 300,000 BTC since launching on Jan. 11, which represents a whopping 1.5% of the total supply of the asset.
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Daily net inflows are hitting records across the board, as BlackRock’s IBIT took in $520 million on its own yesterday, the second-most of any ETF instrument.
According to Eric Balchunas, senior ETF analyst for Bloomberg, the behemoth holds $8 billion in assets under management, reaching the top five for all ETF providers. And it shows no signs of slowing down.
This week’s bullish breakout may be the beginning of a run that sees gold reach new record highs. The last record high was set in December at 2,135. It is off to a good start with this week’s price action. Clearly, upward momentum has improved as represented by today’s wide range green candle and likely strong close. Gold broke out of a bullish hammer candlestick bottom two weeks ago on the weekly chart, providing a solid beginning to this rally.
Next Higher Target is $2,100
The next higher price target above today’s high is up around 2,100. At that point a rising ABCD pattern completes. Symmetry between the two swings in the pattern, the AB leg, and the CD leg, will match at that point. Nevertheless, that is the first target from the pattern. Given the likelihood of still higher prices there is a good chance that the target will be exceeded. The 127.2% ABCD pattern target will then be at 2,138, awfully close to the prior record high.
New High Target Zone: 2,189 to 2,192
Since yesterday’s breakout, however, an eventual target derived from the symmetrical triangle becomes more likely. That target is around 2,189 and marked on the chart. What is interesting is what happens when we look at the two sharp rallies that occurred before the three-month consolidation pattern. Each of the rallies saw an advance of over 10%.
The first was 11% and the second 10.5%. If the current rally matches a 10.5% advance, which would make sense given the previous rallies, gold would be hitting approximately 2,192. That is a very close match to the triangle target. When two methods identify a similar target, that target zone takes on greater potential significance.
For a look at all of today’s economic events, check out our economic calendar.
Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Solana has broken through a critical resistance level, marking a potential trend shift for the cryptocurrency. The chart indicates a significant break of the upper trendline resistance, establishing a new movement scenario for the asset.
Solana has showcased remarkable price performance, as evidenced by its latest rally past the upper trendline of its ascending channel. This breakthrough is a classical technical confirmation of bullish sentiment, and it suggests the possibility of a sustained upward trajectory. With SOL’s price pushing through the $130 mark, the cryptocurrency has not only defied immediate resistance but has set the stage for testing further highs.
Looking at the support levels, Solana’s price is comfortably positioned above the 50-day (orange line) and 100-day (blue line) moving averages, which have historically acted as dynamic support in uptrends.
The immediate support level now stands around the $107 mark, which coincides with the previous resistance-turned-support trendline. The robust volume accompanying the breakout adds credence to the bullish outlook, indicating strong buyer interest.
Conversely, the next resistance level to watch is near the $140 zone, where profit-taking and psychological round numbers may temporarily stall the rally.
Ethereum looks unstoppable
Ethereum continues its meteoric rise, currently showcasing a price surge that has left investors and enthusiasts in a state of euphoria. However, amid the celebration, if a vigilant eye is cast toward the chart, signs of a potential bearish reversal loom, warranting a closer analysis of the second-largest cryptocurrency’s extraordinary rally.
Ethereum’s rally has been nothing short of spectacular, with prices breaking past resistance levels with apparent ease. As of the latest trading sessions, ETH stands tall above $3,500, yet this unstoppable rally may have investors questioning the sustainability of such growth.
Should a reversal occur, the focus would shift to potential support levels that could cushion Ethereum’s descent. The $2,695 mark emerges as a critical juncture, aligning with the 50-day moving average, a dynamic level that historically serves as a battleground between bulls and bears. A breach below this level could see Ethereum testing the $2,065 support, near the 100-day moving average, which may provide a stronger foundation for the digital asset.
The current trend indicates that while the market is riding a wave of optimism, caution is advised. Ethereum has defied traditional market expectations, but no asset is immune to corrections. The foreseeable future suggests that if traders begin to lock in profits, a bearish scenario could unfold, triggering a sell-off toward the identified support zones.
Bitcoin’s strength is rising
The cryptocurrency flagship, Bitcoin (BTC), is showcasing a formidable display of strength on the market, with its price trajectory pointing sharply upward. As the market rides a wave of euphoria, the question on many investors’ minds is whether Bitcoin is poised to reach new all-time highs in the near future.
Bitcoin’s price has been on a relentless climb, and the latest candles on the chart reflect significant buyer confidence. Currently, the price has surged past the $60,000 resistance level, an important psychological barrier that could now be serving as a platform for further gains. The steep ascent is accompanied by a substantial increase in trading volume, indicating a strong conviction behind the move.
The moving averages – 50-day, 100-day and 200-day – are aligned in ascending order, which is a classic bullish signal. These lines are likely to act as dynamic support levels in the event of a price retracement. The 50-day moving average, in particular, has been a reliable support throughout the recent rally, suggesting that any dips might be viewed as buying opportunities by bullish investors.
As of now, the RSI is trending toward overbought territory, suggesting that Bitcoin is extending into an area where a reversal could occur. However, during strong trends, assets can remain overbought for extended periods, defying the traditional expectations of an immediate pullback.
February 2024 witnessed the DeFi sector grappling with security exploits that led to losses exceeding $82 million.
A report sent to Cryptonews by Web3 app and antivirus solution De.Fi noted that $82,287,101 was lost, with just $1,325,932 recovered.
The biggest DeFi security exploit in February happened in the Ethereum-based Play-to-Earn game PlayDapp, causing a loss of $32.3 million on Ethereum.
PlayDapp faced a major security breach with compromised private keys, resulting in the unauthorized minting and theft of 1.79 billion PLA tokens. The attacker added a new minter to PlayDapp, converting tokens into $32 million USD, then proceeded to disperse stolen funds across various addresses.
🚨🚨Major DeFi Exploit! @playdapp_io Loses $31M in Token Mint Attack.
A critical exploit on PlayDapp resulted in the minting of 200M $PLA tokens, causing a -12% price drop and a $31M loss! This represents a significant increase in circulating supply, impacting the price.
Access Control Issues Leading Cause in DeFi Exploits
Access control issues dominated the past month, accounting for $72,823,472 in losses across four cases.
“Proper access control mechanisms are essential to ensure that only authorized users can perform sensitive operations, thereby preventing unauthorized access or manipulation of funds,” De.Fi said in its report. “The cases impacted by access control issues emphasize the importance of comprehensive security audits to identify and rectify potential vulnerabilities in the system’s access control protocols.”
Ethereum and Bitcoin Heavily Affected
The gaming/metaverse sector recorded the biggest losses, with PlayDapp’s losses being the main contributor. Decentralized Exchanges were also popular targets, with FixedFloat, which lost $26.1 million on Bitcoin, being the largest contributor.
Borrowing and lending platforms were the third most-impacted category, losing over $1.3 million last month.
Ethereum was the chain with the highest losses at $40.1 million, with Bitcoin ($26.1 million), BNB Chain ($4.77 million), and Ronin ($9.7 million) also experiencing major losses.
De.Fi concluded that DeFi platforms have to embrace stringent security measures to protect against phishing and other exploits.
“To navigate these challenges, platforms must prioritize comprehensive security audits, embrace robust access management practices, and foster community education to empower users against phishing and other social engineering attacks,” De.Fi said. “As DeFi continues to mature, the collaboration between platforms like De.Fi, security researchers, and users will be paramount in safeguarding the ecosystem and fostering its sustainable growth.”
Happy Friday. It certainly was for the market as a trio of soft second-tier US economic data releases combined to add a dose of dovishness to the market and send the Nasdaq above the 2021 high.
Before the data, some worry was creeping into the market and the US dollar was bid. Comments from Barkin struck a hawkish note and with Waller on the schedule after him, there was some worry about a hawkish turn. Instead, the ISM manufacturing, construction spending and final UMich numbers were all soft and the dollar sank. Then Waller limited his comments to the balance sheet and Goolsbee stayed dovish.
US 10-year Treasury yields fell 12 bps from the highs and broke the important 4.20% level. With that, I would have expect more US dollar selling but that might have been capped by turn-of-the-calendar or US equity buying. The euro and pound managed to recoup yesterday’s declines while the Australian dollar edged modestly above yesterday’s highs before stalling.
USD/JPY declined after the data and finished the week just above 150.00 in what’s going to be an intriguing month for the pair.
Gold closed at the highest level on record, at least spot gold did (futures were close). Oil got above $80 only to finish just below in what was a strong day for commodities.
Bitcoin was lackluster early despite the Nasdaq bid but caught up late to finish within striking distance of the highs of the week. Eyes will be on BTC on the weekend, where it’s generally languished since the ETFs emerged.
