Business

Bitcoin slumps to new low as series of selloffs hits global markets

Published

2 years ago

Farwa

The leading cryptocurrency Bitcoin reached a fresh two-month low breaking out of its recent tight range as a wave of risk-averse sentiment rushed across global markets on Friday.

On Thursday, Bitcoin fell 7.2% in its biggest one-day drop since November 2022 when top exchange FTX collapsed, reported Reuters.

It then slipped to a two-month low of $26,172 during Asian trading hours on Friday, its lowest since June 16. By 0835 GMT, it had partly recovered to $26,441, down 0.8% on the day.

Global markets have been hit by a wave of selling, with Wall Street’s main indexes closing lower on Thursday and Asian shares heading for a third week of losses over concerns about China’s economy and fears that U.S. interest rates would stay higher for longer given a resilient economy.

Ether, the second biggest cryptocurrency, was steady at $1,685.20, having also dropped sharply on Thursday.

Some analysts attributed crypto’s drop to a Wall Street Journal report that Elon Musk’s SpaceX sold its bitcoin holdings after writing the value down by $373 million. Musk is influential among crypto enthusiasts, and bitcoin prices have previously moved in response to his tweets.

The SpaceX report was the “immediate catalyst” for Bitcoin’s sell-off, said Ben Laidler, global markets strategist at eToro.

“The broader driver is that crypto assets are not immune to the deepening risk-off selling pressure seen across all asset classes,” Laidler added.

Joseph Edwards, head of research at Enigma Securities, attributed the bitcoin price move to low volatility and a lack of enthusiasm from retail investors.

Bitcoin had been hovering close to $30,000 in recent months, having gradually recovered this year after dropping sharply in 2022 when various crypto firms collapsed, leaving investors with large losses.

Crypto markets were boosted in June by BlackRock applying to launch a spot bitcoin exchange-traded fund (ETF) in the United States. Some investors interpreted that move as an indication that the U.S. Securities and Exchange Commission would approve spot bitcoin ETF applications from various asset managers, including Grayscale.

“The big concern right now is that this might be a front run on the outcome of Grayscale’s lawsuit against the SEC; optimism on that front has been keeping markets inflated above whether they might otherwise be for much of the summer,” Edwards said.

Business

E&P Companies Will Invest $5 Billion in Pakistan’s Petroleum Industry

Published

3 minutes ago

Farwa

Over the next three years, local and foreign companies involved in Pakistan’s oil and gas exploration and production sector have shown a strong desire to invest more than $5 billion in the nation’s energy sector.

Recent changes to the Petroleum Policy and the implementation of an exclusive tight gas policy, which provide better incentives and a more investor-friendly regulatory framework, are credited with the increase in investor confidence.

These strategic changes are expected to boost domestic energy production, open up new avenues for growth, and draw large amounts of both domestic and foreign investment.

Business

With inflation slowing, the SBP is anticipated to lower the policy rate for the eighth time in a row.

Published

56 minutes ago

Farwa

Businesspeople anticipate another reduction in the policy rate when the State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) releases the updated rate.

The interest rate for the upcoming two months will be announced by the central bank. It is still unclear if the rate will stay the same or be lowered to reflect stakeholder expectations.

According to experts, the policy rate will be lowered in order to further boost the nation’s economic sector.

Interest rates may be lowered for the seventh time in a row if the inflation rate declines significantly more than anticipated.

In its last six sessions, the MPC had cut the policy rate by 10 percent. In January 2025, it decreased the rate by one percent to 12pc.

12PC POLICY RATE

In January, the State Bank of Pakistan (SBP) announced cut in key policy rate by 100 basis points (bps) to 12 percent from 13pc in line with expectations of the business community.

The policy rate, which had been at 22 percent since June 2024, was slashed by 1,000 basis points to 12 percent.

The SBP governor said the decision was taken with careful consideration. “Although inflation is expected to decline next month (February), core inflation remains a pressing concern,” he stated.

Ahmed highlighted strong remittance inflows and robust export growth as key factors supporting the current account.