Latest news with #TheKobeissiLetter
Time of India
21-07-2025
- Business
- Time of India
ETH on fire! Analysts say Ethereum will soon hit $4000 as short positions pile up
Ethereum Price Prediction: Ethereum (ETH) is making headlines this July with a breakout rally that's pushing the altcoin toward new 2025 highs. The latest analysis suggests that ETH is not only on the verge of reclaiming $4,000—but could be headed even higher—as a record-setting short squeeze combines with massive institutional inflows, ETF demand, and whale accumulation to ignite one of the most powerful uptrends in the current crypto cycle. Why are analysts predicting $4,000 Ethereum very soon? Ethereum's price has surged over 20% in the past week, pushing ETH above $3,750 and marking a new six-month high. As of press time, Ether was trading around $3,796 , a stunning 169% rally from March's lows of approximately $1,392. Explore courses from Top Institutes in Select a Course Category Operations Management others healthcare Product Management Others Technology Public Policy Data Science Design Thinking CXO Data Science Artificial Intelligence Cybersecurity MBA Healthcare PGDM Project Management Degree Data Analytics Leadership Management MCA Finance Digital Marketing Skills you'll gain: Quality Management & Lean Six Sigma Analytical Tools Supply Chain Management & Strategies Service Operations Management Duration: 10 Months IIM Lucknow IIML Executive Programme in Strategic Operations Management & Supply Chain Analytics Starts on Jan 27, 2024 Get Details According to fresh analysis by The Kobeissi Letter , Ethereum is in the midst of 'one of the largest short squeezes in crypto history.' Short positions on Ether recently reached all-time highs, but instead of collapsing, ETH reversed sharply to the upside, forcing short sellers to cover in panic—adding fuel to the fire. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like New Container Houses Colombia (Prices May Surprise You) Container House | Search ads Search Now Undo Kobeissi notes that Ethereum has added over $150 billion in market cap since July 1st , just days after shorts peaked. If ETH rises another 10% from here, analysts estimate that $1 billion more in short positions will be liquidated, likely catapulting the price to $4,000 and beyond. What's driving the Ethereum rally besides the short squeeze? Ethereum's bullish momentum isn't solely the result of a short squeeze. Several fundamental catalysts are at play: Live Events 1. Institutional ETF Demand Is Soaring ETF demand is now a dominant force in the market. U.S. spot Ethereum ETFs recorded a record single-day intake of $727 million in mid-July, and monthly inflows are now tracking over $890 million —one of the highest since ETH ETFs launched. Asset managers and corporate treasuries are increasingly allocating capital toward ETH, as spot ETFs make the asset more accessible to traditional investors. These inflows have driven price higher while tightening supply across exchanges. 2. Massive Whale Accumulation Signaling Confidence On-chain data reveals a $50 million ETH purchase by whale address 0x5A8E , who acquired 13,462 ETH at an average price of $3,715. Large strategic entries like these often suggest institutional confidence and long-term positioning—especially when they align with ETF demand. 3. Layer 2 Ecosystem Activity Surges Ethereum's rise is mirrored by increased engagement across its Layer 2 stack, including platforms like Arbitrum , Optimism , and zkSync . These scaling solutions are benefiting from higher on-chain usage, often seen during bull runs. As capital flows into ETH, it naturally spreads across the broader Ethereum ecosystem—powering DeFi, liquidity pools, and dApps. What does the Ethereum price chart tell us right now? Technically, ETH is still in breakout mode. It remains well above key exponential and simple moving averages, and is tracking within an ascending channel that began after March's capitulation lows. The Relative Strength Index (RSI) on shorter timeframes is now near 78, which signals overbought territory—but also reflects intense buying pressure. While some analysts warn of possible pullbacks, prior ETH rallies under similar momentum have often found support at higher levels, especially when ETF flows remain strong. Price targets to watch include: Immediate resistance: $3,950–$4,000 Breakout zone: $4,000–$4,200 Measured move target: ~$4,500 if momentum sustains Will Ethereum break above $4,100? Market strategists believe Ethereum has a good chance to decisively break through the $4,000–$4,200 resistance zone in the coming days. Confirmation of a clean breakout above this range could trigger what analysts describe as an 'explosive' leg higher, potentially targeting $4,500 and beyond. Some cycle models point out that Ethereum is still lagging behind Bitcoin in terms of percentage gain from its macro bottom. If historical rotation patterns repeat, capital may flow from consolidating BTC into ETH—suggesting Ethereum has room for catch-up growth. Bitcoin dominance drops—What does it mean for ETH? Ethereum's outperformance is also reflected in Bitcoin's market dominance , which has dropped to 61.4% , its lowest level since March. This signals a shift in trader sentiment toward altcoins—particularly ETH and XRP—which are seeing faster gains and increased institutional focus. As long as the market remains risk-on and ETH continues attracting ETF flows and whale buyers, it's likely to lead the next leg of the altcoin season. Institutional adoption could reshape Ethereum's future According to Coinbase Institutional, ETH's increasing adoption by corporate treasuries and asset managers is being driven by two core themes: Staking yield opportunities , offering passive returns for holding ETH. Tokenization of real-world assets , which Ethereum is uniquely positioned to power. BlackRock's recent $1.1 billion Ethereum purchase in just 48 hours—bringing its total holdings to $8.9 billion—underscores this trend. The asset giant now controls roughly 1.5% of Ethereum's total circulating supply, tightening available float and increasing upside volatility when demand spikes. Could regulation slow things down? As institutional demand grows, Ethereum is also coming under increased regulatory scrutiny . Lawmakers and regulators are exploring how staking, tokenization, and ETH ETFs fit within evolving securities and asset management frameworks. While new rules could introduce short-term volatility, most analysts agree that clearer regulatory guidance will ultimately broaden ETH's accessibility to institutional investors and accelerate mainstream adoption. Ethereum's breakout has serious firepower Ethereum is in a historic moment. The convergence of a record-breaking short squeeze, $50M+ whale buys, nearly $1B in weekly ETF inflows, and a deepening institutional footprint are powering a rally that has more substance than speculation. If ETH can break and hold above the $4,000–$4,200 resistance band, analysts believe it could mark the beginning of the next parabolic phase of this crypto cycle. Momentum is strong, on-chain data is bullish, and institutional players are clearly buying the dip. As we head deeper into the second half of 2025, Ethereum appears ready to lead the next leg of the digital asset boom—with $4,500 already on the radar for many traders and investors. Frequently Asked Questions About Ethereum's Key Investors and Institutional Demand 1. Who are the biggest institutional holders of Ethereum right now? Several major players are holding large amounts of ETH, including: Grayscale Ethereum Trust (ETHE): Holds over 1.2 million ETH, giving institutional investors exposure to Ethereum without directly owning the asset. Crypto exchanges: Coinbase holds approximately 4.9 million ETH, Binance around 4.2 million, and Bitfinex about 3.2 million. Staking and smart contracts: The ETH2 Beacon deposit contract holds over 64 million ETH locked for staking, while Wrapped Ethereum (wETH) contracts contain around 2.6 million ETH. 2. Which companies are adding Ethereum to their balance sheets? A growing number of public companies are actively accumulating ETH. BitMine Immersion Technologies now holds over 300,000 ETH (valued at more than $1 billion), boosted by a recent investment from billionaire Peter Thiel's Founders Fund. SharpLink Gaming also holds over $1 billion in ETH, after accumulating more than 144,000 ETH in under two weeks—an aggressive move into the Ethereum space. 3. What asset managers are leading Ethereum ETF investment? Several traditional financial giants are behind the surge in Ethereum ETF inflows. BlackRock's iShares Ethereum ETF is one of the largest, with over $9.1 billion in assets under management. Grayscale , Fidelity , and Franklin Templeton are also key players, offering low-cost access to Ethereum ETFs with management fees between 0.19% and 0.25%. 4. How much capital is currently flowing into Ethereum ETFs? ETF inflows are at record highs in 2025. In mid-July alone, Ethereum ETFs saw a single-day intake of $727 million —a new record. Total inflows for July have surpassed $3.2 billion , driven by growing institutional interest and investor confidence in Ethereum's long-term potential. 5. Are venture capital firms also backing Ethereum? Yes, some of the largest crypto-focused VCs have strong Ethereum exposure. Paradigm manages over $10 billion in crypto assets, with Ethereum as a core holding. Polychain Capital , managing about $5 billion, also invests heavily in ETH and Ethereum-based startups. Firms like Securitize , backed by BlackRock, are building tokenization platforms directly on Ethereum, reflecting long-term conviction. 6. Are individual billionaires investing in Ethereum too? High-net-worth individuals are beginning to make bold Ethereum plays. Peter Thiel , through his Founders Fund, has taken a significant stake in BitMine, a company holding hundreds of thousands of ETH—showing elite investor interest in Ethereum's future. 7. Does the U.S. government own Ethereum? Yes, through asset seizures, the U.S. government has acquired ETH holdings. Following high-profile crypto crackdowns and seizures (such as the Bitfinex hack), U.S. authorities now reportedly hold around 60,000 ETH , making them one of the notable institutional holders. 8. Why Ethereum Is Attracting Massive Institutional Interest Ethereum is entering a new era of adoption, not just by individual investors—but by some of the world's most powerful financial institutions and corporations. From BlackRock's $9B ETF inflows to public companies holding over $1B in ETH , the data shows clear momentum. With strong ETF demand, growing staking participation, and strategic whale accumulation, Ethereum is transitioning from a speculative asset to a mainstream institutional investment . This transformation is tightening supply, driving prices higher, and setting the stage for a potential breakout above $4,000 and beyond.
Express Tribune
15-07-2025
- Business
- Express Tribune
Nvidia to resume China chip sales amid shifting US export policy
Nvidia has confirmed it is filing applications to restart sales of its H20 artificial intelligence chips to China, following months of shifting US export rules. The move, confirmed through a blog post on Nvidia's website, comes after the Trump administration reversed restrictions imposed earlier this year, opening the door for resumed trade. The company expects to secure US government licences soon and begin deliveries shortly after. It has also announced a new chip, the 'RTX Pro,' designed specifically for the Chinese market and said to comply fully with current export regulations. Nvidia describes the chip as optimised for digital manufacturing, including logistics and smart factory systems. Though not its most advanced processor, the H20 is the most powerful chip Nvidia can legally sell to China under existing rules. Built for inference tasks (the operation of trained AI models) the chip is favoured for its superior memory bandwidth and seamless integration with Nvidia's established software ecosystem. The company's stock also skyrocketed, surging to a new record after the announcement was made. BREAKING: Nvidia stock, $NVDA, surges to a record $170/share in overnight trading after announcing H20 chip sales to China will resume. Nvidia also announces a fully compliant GPU for China. This company just keeps on evolving. — The Kobeissi Letter (@KobeissiLetter) July 15, 2025 Chinese technology firms including ByteDance, Alibaba and Tencent had stockpiled the H20 in early 2025 amid fears of impending restrictions, according to GuruFocus. The chip's popularity, coupled with its performance, meant Nvidia stood to lose as much as $16 billion in revenue when the initial ban was enforced in April. The reversal came weeks after Nvidia CEO Jensen Huang attended a $1 million-per-seat fundraising dinner at former President Donald Trump's Mar-a-Lago resort. According to NPR, the White House softened its stance following Huang's commitment to invest heavily in US-based infrastructure. Nvidia subsequently announced a plan to build domestic AI data centres worth up to $500 billion over four years, in partnership with TSMC. Critics in Washington have questioned the consistency of US policy, warning that easing restrictions could erode efforts to limit China's AI capabilities. Concerns have grown following breakthroughs by Chinese startups like DeepSeek, which trained an advanced AI model earlier this year using Nvidia's H800 chips — a product banned since 2023 but still reportedly reaching China through alternative channels. In the blog post, Nvidia spokesperson Hector Marinez said Huang had been engaging with officials in both Washington and Beijing to highlight the benefits of AI for industry and society. The episode illustrates the competing pressures facing US policymakers as they navigate national security concerns and economic interests. With geopolitical tensions continuing to shape the tech landscape, further shifts in policy appear likely.
Yahoo
22-05-2025
- Business
- Yahoo
Did Moody's Just Pump Bitcoin?
Diversification can be a good way to cushion your portfolio against asset declines. Bitcoin is one way to diversify, but the cryptocurrency remains a risky and volatile asset that has never been tested by an extended recession. Don't assume that a weakening U.S. dollar is automatically good for crypto. 10 stocks we like better than Bitcoin › The price of Bitcoin (CRYPTO: BTC) topped $106,000 on Monday as investors reacted to Moody's (NYSE: MCO) decision to downgrade the credit rating of the U.S. government from Aaa to Aa1. Moody's was the last of the big three credit rating companies to strip the U.S. of its highest grade. It said, among other things, that it expected larger deficits to drive the government's debt burden up during the next decade. The announcement spurred Bitcoin to its highest level since January and brought it close to its all-time high of about $109,000. Although Bitcoin's price is up, it does Moody's a disservice to call what it did a pump for Bitcoin because the word is usually associated with pump-and-dump scams. I'm sure that the jump in crypto prices that resulted from the ratings company's action was a side effect rather than a deliberate ploy. Even so, it raises questions of how much of a hedge Bitcoin can be against a weakening dollar and how likely a dollar crisis might be. There's often a negative correlation between the U.S. dollar index and Bitcoin -- when the dollar falls, Bitcoin often rises. Indeed, a wide cohort of crypto enthusiasts believe what's bad for the U.S. dollar is good for Bitcoin. As The Kobeissi Letter (an investment-focused subscription newsletter) posted on X, "Crypto is loving the Moody's downgrade." Particularly during uncertain times, portfolio diversification makes sense. Investors often put money into commodities like gold as a hedge against drops in assets such as currencies and stocks. And many view Bitcoin as a form of digital gold. Like gold, its value doesn't rely on governments or central banks. Its supply is capped, which can insulate it against inflationary pressures. It is also easier to store and transport than physical gold. As investors come to grips with the ramifications of a weakening dollar, the threat of renewed inflation, and recession warnings, Bitcoin's price rise is understandable. However, Bitcoin has a history of wide and volatile swings, and it's a relatively new asset. I can see many reasons a person might include cryptocurrency in their portfolio, but safety is not one of them. Don't forget that it's only been about three years since Bitcoin finished a seven-month slide that left its price about 70% below its peak. If you're looking for an asset that will hold its value in an economic crisis, the leading cryptocurrency may not be the right choice. It wasn't around during the last protracted U.S. recession, so we have yet to see how it might perform when the economic chips are down. But we've seen how quickly it can drop even without a recession. And we know that investors tend to pull away from riskier assets like Bitcoin when the economy stalls. Moody's downgrade didn't have a big impact on markets, in part because it largely served to confirm something that people already knew. Nonetheless, the dollar's bull run may well be coming to an end, and many economists see evidence of a shift in attitudes. For example, JPMorgan's private bank unit points out that this is the first time in years that U.S. stocks, bonds, and the dollar have all sold off at the same time. It argues that several factors have eroded confidence in the greenback, including U.S. policy uncertainty and a loss of trust in the nation's legal framework. Even so, reports of a dollar demise are greatly overstated. The U.S. dollar is a dominant force in the world economy, and that won't change anytime soon. Not only does it act as a global reserve currency, but it is also the backbone of the international payment system. Schwab points out that the dollar is used for more than 80% of global financial market transactions. Plus, in the extremely unlikely scenario where the dollar did collapse, it would almost certainly take Bitcoin with it. Sure, when Argentina or Venezuela experienced hyperinflation, some people in those countries did buy Bitcoin in a bid to preserve the value of their savings. The U.S. dollar is different -- it's the cornerstone of the world economy. It is hard to even imagine the global financial panic that would ensue if it fell, or a world in which Bitcoin did not collapse alongside it. Diversification makes more sense than ever, so now would be a good time to look at the balance of your portfolio and consider including gold, Bitcoin, and international stocks in it. Just be wary about assuming that a lack of confidence in the U.S. is automatically good for Bitcoin. Bitcoin may prove itself as a form of digital gold in the long term. However, while it has many things going for it, it is not there yet. Even with the U.S. debt up to $37 trillion and a Moody's downgrade of the nation's credit rating, it is hard to see Bitcoin as a safer investment than the U.S. dollar. One of those assets has been around for more 200 years and acts as a global reserve currency. The other is a mere toddler taking its first steps into the world. Before you buy stock in Bitcoin, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Bitcoin wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $642,582!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,879!* Now, it's worth noting Stock Advisor's total average return is 975% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Emma Newbery has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin and Moody's. The Motley Fool has a disclosure policy. Did Moody's Just Pump Bitcoin? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
02-05-2025
- Business
- CNBC
This market is the product of sentiment, says The Kobeissi Letter's Adam Kobeissi
Bob Elliott, Unlimited CEO and Adam Kobeissi, The Kobeissi Letter editor-in-chief, join 'Closing Bell: Overtime' to discuss market rally, their outlook for stocks and Fed day.
Yahoo
30-04-2025
- Business
- Yahoo
Rising gold price has a surprising connection to house sales
In 2001, it took 650 oz of gold to buy a new median-priced single-family house in the U.S. It took 280 oz of gold to buy the same house in the last quarter of 2022. Now, it takes only 121 oz of gold to buy the same house — the least in 12 years. A leading market analyst, The Kobeissi Letter, made the above observation on X on Apr. 28. "Gold has helped investors preserve purchasing power," the analyst said and highlighted the 66% surge in the bullion's price over the last two years. Gold's price was around $1,725 per oz during Q4 2022. Toward the end of March 2025, it stood above $3,100 per oz. Its current price is $3,337.86 per oz. As per the U.S. Census Bureau, the average price of a median-priced new single-family house was approximately $438,630 during Q4 2022. The same house cost $403,600 in March 2025. Since Bitcoin is often referred to as "digital gold," it is crucial that we pause and compare the price action and purchasing capacity of the largest cryptocurrency too. The average price of Bitcoin during Q2 2022 was $18,000, and it would have taken a little more than 24 BTC to purchase a single-family house in the U.S. The crypto asset was trading at $93,650.91 at press time, as per Kraken's price feed. Now, it would take more than 4 BTC to purchase the same house. Note that the price of a new median-priced single-family house in the U.S. has fallen 8% since Q4 2022. The above statistics indicate how divergent the price actions of different assets such as real estate, gold, and Bitcoin are. Disclaimer: The content above is intended for informational purposes only and should not be taken as financial advice. Do your own research before investing. Sign in to access your portfolio
