Bitcoin gains more than 10% and surges above $7000

Bitcoin is on track to close the third day in a row with robust gains.
News of Square, Inc. considering using cryptocurrencies fueled today's rise.
All-time high is back in reaching distance.

Eren Sengezer FXStreet

The BTC/USD pair added more than $700 on Wednesday to refresh its highest level since last week's record setting rally at $7310. At the time of writing, the pair was trading at $7270, gaining nearly 10% on the day.

Square, Inc. a mobile payment company that offers credit card processing services, announced that it was testing the use of cryptocurrencies to be used in its mobile application Cash.“We’re always listening to our customers and we’ve found that they are interested in using the Cash app to buy bitcoin. We believe cryptocurrency can greatly impact the ability of individuals to participate in the global financial system and we’re excited to learn more here,” a spokesperson for the company told Reuters.

Despite today's impressive rise, questions about how bitcoin's transaction speeds and costs will be improved remains unanswered and investors could wait for more clarity on this matter before pushing the pair to new record peaks.

Technical levels to consider

The pair could face the firt technical hurdle at $7500 (Nov. 9 high) before making another attempt at $7900/$8000 (record high/psychological level). On the downside, supports align at $6600 (daily low), $5800 (Nov. 13 low) and $5000 (psychological level).

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

GBP/USD stays slightly offered below 1.3600

Following an initial drop to fresh six-day lows, GBP/USD now picks up some updside traction and trades in levels just shy of the 1.3600 barrier on Thursday. The generalised cautious tone among market participants continue to underpin the Greenback ahead of Friday’s data releases and the Fed Warsh’s speech.

EUR/USD challenges 1.1650; US Dollar remains inconclusive

EUR/USD now manages to regain some composure, trimming earlier losses and reclaiming the mid-1.1600s on Thursday. The pair’s pullback comes on the back of marginal gains in the US Dollar, as market participants now shift their attention to Friday’s NFP revision and the speech by Chair Warsh at the Jackson Hole Symposium.

Gold struggles to reclaim $4,600

Gold adds to Wednesday’s pullback, although it manages to pick up some pace and come closer to the $4,600 mark per troy ounce on Thursday. In the meantime, the yellow metal remains on the back foot despite the widespread caution and the lack of clear direction of the US Dollar.

Crypto Today: Bitcoin, Ethereum, XRP bulls regain strength amid steady capital inflows

Cryptocurrency prices are broadly edging higher on Thursday, led by Bitcoin’s uptick near $80,000. Altcoins mirror Bitcoin’s short-term bullish outlook, with Ethereum trading above $2,500 and Ripple hovering above its key $1.40 support.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.

Kevin Warsh’s Jackson Hole dilemma: Say too much, too little, or just enough

Kevin Warsh is preparing to deliver his first Jackson Hole speech as Federal Reserve (Fed) Chair on Friday, and expectations extend well beyond whether interest rates will be raised or left unchanged in September.