updraftplus domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131hustle domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131wpforms-lite domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131Amid lower fossil fuel costs, BP’s profits tanked in comparison to the bumper profits recorded in 2022.
On Tuesday, May 2, oil major British Petroleum (BP) reported stronger-than-expected first-quarter (Q1 2023) profits, and rising from the previous quarter i.e. Q4 2022. However, the numbers were down from the exceptional profits that the company recorded during a blockbuster 2022 when fossil fuel prices shot up significantly following Russia’s invasion of Ukraine.
During the first quarter, the British energy giant reported an underlying replacement cost profit of $4.96 billion. This was higher than the $4.8 billion net profit in Q4 2022 but lower than the $6.2 billion profit recorded in Q1 2022. Analysts expected British Petroleum to report $4.3 billion in profit during the first quarter this year.
The first quarter results from British Petroleum reflect robust oil and gas trading. Speaking on the development, BP CEO Bernard Looney said:
“This has been a quarter of strong performance and strategic delivery as we continue to focus on safe and reliable operations. And importantly we continue to deliver for shareholders, through disciplined investment, lowering net debt and growing distributions.”
During the earning morning trade on the London stock exchange, shares of BP tanked by more than 5% while slipping to the bottom of the pan-European Stoxx 600 index. The energy giant said that it expects to deliver a share buyback of $4 billion a year. This is still at the lower end of the company’s $14 billion to $18 billion capital expenditure range.
For the year 2022, BP reported annual profits of $27.7 billion, more than double recorded in the previous year. The last time, the oil major recorded this massive profit was in 2008. Despite a barrage of criticism, big oil giants have sought to defend their profits highlighting the importance of energy security as the world transitions away from fossil fuel. BP is among the first energy giants to announce reaching an ambition of net-zero emissions by 2050.
However, shareholders have shared disappointment with some of the UK’s biggest pension funds expressing deep frustration. Some 17% of the shareholders have voted in favor of a resolution put forward by Dutch Group Follow This. This resolution calls for BP to align its 2030 emission reduction targets with the landmark Paris Agreement.
In addition to BP, French oil major TotalEnergies also kicked off its earnings season for the first quarter in line with analyst expectations. Amid lower fossil fuel prices, the company reported a 27% drop in net income to $6.5 billion.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
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Bitcoin
The bitcoin price has dropped under $19,000 per bitcoin, exacerbating fears it could fall under its 2022 lows if a September so-called black swan scenario plays out. The ethereum price has also crashed back following the successful first step in its long-awaited and much-hyped merge upgrade, dragging down the price of top ten coins BNB
Now, as the Federal Reserve’s hawkish stance boosts the U.S. dollar ahead of what some expect to be a “great pause,” traders are braced for the European Central Bank (ECB) to follow the Fed in hiking interest rates on Thursday as well as the latest U.S. inflation data next week.
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The bitcoin price has crashed by over 70% since hitting an all-time high of almost $70,000 per … [+]
“These macro events, combined with [ethereum’s] merge, might be catalysts for going forward,” analysts at Arcane Research wrote in a note seen by Coindesk, warning of increased volatility in the coming days.
It’s thought the ECB could vote for a rate hike of 75 basis points when its governing council meets on Thursday as it battles to drive down eurozone inflation that hit almost 10% in August.
“As frontloaded hikes can have a bigger impact on inflation expectations than a more gradual approach, a 75 basis point move could make sense,” Berenberg chief economist Holger Schmieding wrote in a research note seen by CNBC.
Meanwhile, U.S. Federal Reserve officials and traders are closely watching next week’s consumer price inflation (CPI) data that will show whether the Fed’s earlier interest rate hikes have further slowed price rises. Markets are currently pricing in a 75% chance of a third consecutive Fed interest rate hike in September.
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The bitcoin price moved sharply lower on Tuesday, dragging down the price of ethereum, BNB, XRP, … [+]
Ahead of the next batch of U.S. inflation data, Federal Reserve chair Jerome Powell will speak at the Cato Institute’s 40th Annual Monetary Conference on Thursday. Last month, Powell sent bitcoin, crypto and stocks sharply lower when he warned the Fed would continue to raise interest rates “until the job [of lowering inflation] is done.”
“The slipping bitcoin price is solely hinged on the uncertainties surrounding the expected speech from Federal Reserve Chairman Jerome Powell on September 8 and the broader investor reaction to the forthcoming rate hike,” Fuad Fatullaev, the chief executive of blockchain-based web3 ecosystem WeWay, said in emailed comments, warning the bitcoin price could fall as low as $15,000.
“The deteriorating macroeconomic environment, despite the optimism about ethereum’s merge, seems to be pushing the quotes lower and lower,” Daniel Kostecki, a senior market analyst at currency trading platform Conotoxia, said via email.
Bitcoin
The bitcoin price has fallen to lows not seen since last summer, hovering around $30,000 per bitcoin. Ethereum and smaller cryptocurrencies BNB
Now, as the Fed pushes ahead with its inflation-busting interest rate hikes and a balance sheet reduction program, one closely-watched crypto analyst has predicted bitcoin will be “one of the best assets on the planet” once risk assets begin to recover and the Fed turns dovish.
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Federal Reserve chair Jerome Powell has said he’ll back interest rate increases until inflation … [+]
“I think some of the best assets will be gold, U.S. long bonds, and bitcoin,” Bloomberg Intelligence senior commodity strategist Mike McGlone told Kitco News, reiterating his bitcoin price prediction of $100,000 by 2025. “The great reversion is just getting started.”
Despite bitcoin potentially heading lower in the short term, McGlone said he expects the bitcoin price and the ethereum price to “outperform” eventually.
“Right now I fully expect bitcoin to trade lower. I don’t’ know how much lower… But what I fully expect is that when we see the foundation form, which is going to happen, bitcoin and ethereum should come out ahead because they’ve outperformed for so long.”
The Fed said at the tail end of last year it would begin raising interest rates to combat persistently higher inflation than it had anticipated. Inflation eased slightly to 8.3% in April but remains at multi-decade highs.
The threat of higher interest rates—which had been cut to historic lows through the Covid-19 pandemic—sparked an ongoing stock market and crypto sell-off, with technology companies that had soared through the pandemic era leading the declines.
“Federal Reserve rate hikes are addressing the need for inflation and risk assets to decline and once things stabilize, we see bitcoin coming out ahead,” McGlone wrote in a note this week.
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The bitcoin price has swung wildly over the last year, soaring to almost $70,000 before crashing … [+]
This week, billionaire investor Ray Dalio said he expects the Fed and central banks around the world to begin again cutting interest rates as soon as 2024 due to stagflation—a combination of high inflation and low growth—hitting the global economy.
“We are in a tightening mode that can cause corrections or downward moves to many financial assets,” Dalio, the founder and co-CIO of Bridgewater Associates, told the Australian Financial Review. “The pain of that will become great and that will force the central banks to ease again, probably somewhere close to the next presidential elections in 2024.”
Bitcoin and cryptocurrency prices have dropped sharply over the last week, with the combined crypto market now down around $1 trillion from its November peak (even as Wall Street giant Goldman Sachs issued a huge bitcoin price prediction).
The bitcoin price has fallen around 10% since the beginning of 2022, crashing towards $40,000 from highs of almost $70,000 late last year. Meanwhile, other major cryptocurrencies ethereum, Binance’s BNB, solana, cardano and XRP have also crashed back, all losing double-digit percentages this past week.
Now, as traders desperately hunt for signs the sell-off has ended, bitcoin and crypto billionaire Mike Novogratz said he doesn’t expect bitcoin to fall any further—calling the price bottom just under bitcoin’s lows this week of $40,680.
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The bitcoin price has lost around 40% of its value over the last two months, wiping $1 trillion from … [+]
“On the charts, $38,000, $40,000 feels like where we should bottom,” Novogratz, the chief executive of crypto investment management company Galaxy Digital, told CNBC, pointing to “tremendous amount of institutional demand on the sidelines.”
“I know big institutions who are going through their process to put positions on and so I think they’re gonna see those as attractive levels to buy,” said Novogratz, a Wall Street veteran that jumped headfirst into bitcoin and crypto in 2017 after stints at Fortress and Goldman Sachs.
Wall Street giants and institutional investors have flooded into cryptocurrency markets since 2020 as digital assets grab trader attention. The bitcoin price has risen around 400% over the last two years, with smaller cryptocurrencies such as ethereum and solana making even greater gains.
However, bitcoin and cryptocurrencies remain highly volatile, putting off many big investors despite some predicting bitcoin will win market share from gold as a store of value over the next few years.
The bitcoin price dropped sharply this week after the Federal Reserve released the minutes of its December meeting in which officials discussed the possibility of earlier and faster interest rate hikes and shrinking the Fed’s huge balance sheet in order to rein in soaring inflation.
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The bitcoin price has climbed over the last 24 hours, giving hope to some who think bitcoin has … [+]
The bitcoin price fell to lows of just over $40,000 per bitcoin this week before rebounding and has now climbed to over $42,000. The ethereum price has also bounced off its lows this week, helping the price of its smaller rivals Binance’s BNB, solana, and cardano to rally. Ripple’s XRP also moved higher.
“We’ve had this philosophy that the Fed’s gonna keep rates low forever and even now, they’re going to raise rates to 2% over two years gradually and continue to buy Treasuries for a while,” Novogratz said. “So we’re in this liquidity bubble.”
Novogratz also warned that if the Fed fails to get a handle on inflation, the situation could spiral out of control.
“If inflation doesn’t come down like the Fed thinks, all bets are off,” he said.
Dogecoin and Shiba Inu seem to have borne the brunt of the recent price crashes in the market. Reports have shown that the trading volume of the crypto market fell over 40% last month. Numbers taken from top exchanges saw the volume traded in June being significantly lower than that in May. Prices followed the lead of bitcoin which had finally fallen to the $28,000 threshold the same month. Before then rising back up to reclaim over $30,000.
Despite the recovery, the damage seemed to have been done already. The market which had been in a two-month-long recovery continued to suffer price dips. The number 2 coin ethereum saw prices fall below $2,000. Following this, meme coins have not been left out of the carnage it seemed. Even suffering the most significant losses as sell-offs continue in the market.
Related Reading | Crypto Trading Volumes Nosedive In June, Down 42%
This opens up questions about why meme coins seem to have it the worst. While top coins fall in the single and low double digits, meme coins have seen mid to high double digits dips.
A good place to start would be to look at the growth of meme coins against other coins. Meme coins have so far outperformed most other coins in terms of short-term growth. It only makes sense then that more people would be selling off coins to take out the massive profits they have acquired.
Coins like Dogecoin and Shiba Inu have seen incredible growth in less than a year. Dogecoin which started out the year at $0.01 now currently trades for $0.1947 currently. Trading over 1,000 percent of its price at the start of the year.
Dogecoin price up over 1,000% from the beginning of 2021 | Source: DOGEUSD on TradingView.com
Also, the highly volatile nature of these coins makes them susceptible to wild movements. This is a good thing when it comes to the price of the coins going up. But also can go the other way when the price is going down.
The price of meme coins going up in value also means that they get into overpriced territory quite quickly. And thus, they tend to experience sharper and harsher price corrections in a shorter amount of time.
The report from CryptoCompare showed that trading volumes were generally down across the board. Exchanges recorded massive losses in trade volumes in June. Prices of meme coins have seen continued dips. Dogecoin is currently down over 10% in the past week.
Shiba Inu (SHIB) shows the same movement. Closely following the price movements of Dogecoin.
Related Reading | Baby Doge Plunges 40% As Hype Dies Down
These low volumes were attributed to the declining prices of cryptos and low volatility presently in the market. On the heels of this also follows massive FUDs haunting cryptos. Things like China crackdowns on mining, low hash rate due to miners having to move.
There’s a continually looming fear that the entire crypto market is headed for a bear market. To some people, the bear is already here and investors are just yet to catch up.
Featured image from Crypto.IQ, chart from TradingView.com