The rate of bitcoin against the US dollar fell on Monday to a minimum of six weeks against the backdrop of a general risk aversion from investors due to signals of the “hawkish” mood of the Federal Reserve System (Fed).
The value of the cryptocurrency fell during trading to the lowest level since March 15, $38,223, which is 20% lower than the peak level recorded last month. As of 15:00 CST, the bitcoin rate is $38,812.
Ether (Ether) on Monday fell to $ 2799 – a minimum since March 18.
Experts note that technical analysis indicators point to the possibility of a further rollback of bitcoin.
“Bitcoin breaks a key two-month trend line, which could mean a further pullback to January lows,” said Fundstrat analyst Mark Newton, quoted by Market Watch. He expects bitcoin to drop to $36,300, and if it goes lower, he could test the $32,950 level.
Currently, bitcoin is closer to the lower end of the $35,000-45,000 price range in which it has been trading since the beginning of this year.
The dynamics of the cryptocurrency clearly correlates with the dynamics of the Nasdaq 100 index of technology companies, with a negative correlation with the dollar.
As investors wait for a substantial increase in the base interest rate by the Federal Reserve System (Fed) in the coming months, some of the factors that support the demand for cryptocurrencies are fading away.
“As it becomes more profitable to hold dollars, investors can shift funds from bitcoin or gold,” Nydig experts say. “We see a negative correlation of bitcoin’s performance with both the dollar and interest rates.”
Bitcoin’s momentum is still largely driven by fundamental factors such as user growth and the expansion of the crypto usage network, but it’s important to understand the emerging macroeconomic links as well, says Nydig.
On Wednesday, March 9, the prices of Ukrainian U.S. dollar-pegged eurobonds rose by another 4.5-10%, and in general since last Friday their growth reached 20-43%.
According to Bloomberg, the price of the shortest bonds maturing in September 2022 at the end of Wednesday was 45.4% of par, which corresponds to a yield to maturity of 270.9% per annum, while at the end of last week the rate reached 362.4%.
Eurobonds maturing in 2023 were quoted at a rate of 86.4% per annum, in 2024 – 68.5% per annum, in 2025 – 50.6% and in 2026 – 43.8%.
Rates on securities maturing in 2027-2028 fell to 39-40% versus 49-51% last Friday, and on longer-term bonds maturing in 2029-2031 they amounted to 32.6-28.1%, while their price was equal to 30% of the nominal versus 21.8% at the end of last week.
Euro-pegged bonds maturing in 2026 were quoted with a yield of 46%, in 2030 – 26.2%.
The rate of VRIs rose by 7.5% on Wednesday, and by 54.5% since Friday, and now stands at about 22.8% of the nominal value.
In the first ten days of October, an upward price trend continued on the regional iron markets under the influence of the rise in prices for scrap metal and iron ore raw materials, Ukrainian Industry Expertise (UEX) said in a press release on Monday.
At the same time, in the U.S. market, consumers are under pressure from a deficit and a rapid rise in prices for high-quality scrap grades, so buyers are forced to return to contracting cast iron. Also, most of them are trying to accumulate sufficient stocks for the winter, buying large quantities without waiting for the rise in prices for raw materials. Despite the growth in demand and prices, producers of raw materials are in no hurry to unload warehouses, as they expect to maintain an upward trend in the coming month. As a result, cast iron quotes increased to $600-610 per tonne CIF.
A significant rise in the cost of flat products and a shortage of material on the Italian domestic market pushed the quotes for cast iron to rise to $590-595 per tonne CIF. The factories are experiencing a supply deficit driven by an increase in cast iron consumption in Turkey and the United States.
According to forecasts of the UEX analyst Yuriy Dobrovolsky, in the coming weeks the quotations of cast iron will increase amid the rising cost of scrap metal and the exhaustion of stocks at large importers. The prices will also be supported by a low supply from the main suppliers from Russia and Brazil, as well as the active creation of winter stocks by the main importers in Turkey and the Asian region.
In the second half of October, scrap prices continued to rise rapidly due to the catastrophic shortage of raw materials and the active formation of winter reserves by large importers of scrap.
In Turkey, deals are being made in all directions, with buyers willingly making concessions to suppliers, fearing that the upward trend will continue in the near future. The problem remains with the prompt supply of material for the current production programs amid weak internal scrap procurement. As a result, at the beginning of the second decade of October, quotations of scrap HMS 1 & 2 (80:20) rose to $500 per tonne CIF, which is $25 per tonne more than a week earlier. Crushed raw materials are traded by $10 per tonne more – at the level of $510-515 per tonne CIF.
In the Asian market, scrap prices are also moving rapidly upward on the back of growing demand for long products and a lack of supply in the domestic market. Japanese scrap suppliers noted an increasing demand for the material in the domestic market, which limits the volume of supplies to foreign destinations. As a result, scrap HMS1 rose in price to $490 per tonne CIF.
UEX analysts predict in the near future an increase in the price of scrap metal in connection with the replenishment of stocks by the largest buyers and the creation of reserves for the winter period. The quotes will also be supported by the dwindling supply of material from American and European suppliers, who feel a shortage of scrap in the domestic markets of their countries.
Natural gas to the territory of Ukraine in August 2021 was imported at an average price of $427.88 (UAH 11,457) per 1,000 cubic meters, the Ministry of Economy reported on Monday.
Thus, the price of gas imported in the past month was 19.7% higher than the price of July 2021 in U.S. dollars, when it stood at $357.32 (UAH 9,747) per 1,000 cubic meters.
The price of the nearest futures contract on the Dutch TTF spot index for ICE Futures, for October, continued to grow on Monday, assuming the value of 49.26 euros per kWh or $600 per thousand cubic meters, according to the exchange’s data.
Trading on Friday finished up at the value of $586 per thousand cubic meters.
The new gas year begins from October. Gazprom has a long-term reservation of transit capacities through the Yamal-Europe gas pipeline until the end of September. The Russian company did not book capacities of the pipeline at past annual and quarterly auctions.
The launch of the almost completed Nord Stream 2 gas pipeline is expected toward the end of this year. Issues concerning regulation of the pipeline’s operation are currently under consideration of the relevant controlling bodies.
The rental price of apartments in Kyiv, Kharkiv and Dnipro in August 2021 increased by an average of 3% compared to spring, in Odesa – by 5%, and in Lviv – by 2%, according to the OLX Real Estate analytical service.
“If last year, after the first lockdown and until the fall, rental prices in Kyiv decreased by 6-9%, then in 2021 the situation is different: housing prices are growing. Compared to April, long-term rent in Kyiv has risen by 3%,” according to the OLX press release.
According to the service, the largest drop in rental prices for apartments was recorded in Kyiv. The average prices for one-room apartments in Kyiv vary on average from UAH 7,000 to UAH 16,000, for two-room apartments – UAH 8,000-UAH 30,000, and three-room apartments – UAH 11,000-UAH 55,700. The highest rates are kept by apartments in Pechersky district. At the same time, the lowest rental prices remain in Desniansky district: UAH 7,000 – for a one-room apartment, UAH 8,000 – for a two-room apartment, and UAH 11,000 – for a three-room apartment.
According to analytical data, in Kharkiv, the cheapest housing for rent is offered in Industrialny, Nemyshliansky, Novobavarsky and Moskovsky districts, where prices for one-room apartments are UAH 5,000-UAH 5,500, two-room apartments – UAH 6,000-UAH 7,000, and three-room apartments – UAH 7,000-UAH 9,000. At the same time, the highest prices remain in Shevchenkivsky district – on average 50% higher than in remote residential areas.
In Dnipro, the average rental price for a one-room apartment is UAH 5,000-UAH 8,000, for a two-room apartment – UAH 6,000-UAH 12,000, and for a three-room apartment – UAH 7,000-UAH 13,000. The lowest prices were recorded in Samarsky district: UAH 4,000, UAH 5,000 and UAH 8,000, respectively.
According to OLX, Lviv has the smallest difference in rental prices between apartments in central and remote areas. So, the rental prices for a one-room apartment vary within UAH 7,000- UAH 8,000, two-room apartments – UAH 8,000-UAH 10,000, and three-room apartments – UAH 8,500-UAH 12,500.
According to the company, Odesa has the lowest prices for long-term rent among cities with a population of over one million. This is due to the decline in the tourist season. Thus, the average rental prices for a one-room apartment are UAH 5,500-UAH 7,000, for a two-room apartment – UAH 6,000-UAH 8,500, and for a three-room apartment – UAH 7,000-UAH 9,500.
At the same time, as we get closer to the sea, prices in Odesa increase: one can rent a one-, two- and three-room apartment in Prymorsky district for UAH 8,500, UAH 12,000 and UAH 19,300, respectively.