Bitcoin Tops $100,000 and Ethereum Surges in Banner Week for Crypto

Cryptocurrency

Summary:

The Pectra upgrade, the most significant change since the Merge, enhances staking efficiency, validator functions, and Layer 2 scalability.

Ethereum has experienced its most impressive rally in four years following the long-anticipated Pectra upgrade. This major protocol update has injected new life into the world’s second-largest cryptocurrency, reigniting investor enthusiasm and pushing ETH into a fresh upward trajectory.

The Pectra upgrade is the network’s biggest change since the Merge, enhancing staking efficiency, validator functions, and Layer 2 scalability. These technical enhancements not only bolster network performance but also reaffirm Ethereum’s commitment to overcoming past challenges and setting the stage for its next growth chapter.

ETH PRICE REPORT

After the upgrade was activated, Ethereum’s price jumped by 16%, showing a strong increase that indicates renewed confidence in the market. At the time of the rally, ETH’s price soared from earlier levels of around $1,900 to push above the $2,300 mark, increasing nearly 20% and setting off a wave of excitement across trading platforms.

Data from leading market trackers now reflects a fresh trading sentiment, with investors rushing to position themselves ahead of further gains. The boost in ETH’s price, driven by the technical revival from the upgrade, also indicates a broader shift in risk-on sentiment, as market participants see Ethereum as a key indicator of digital asset resilience in uncertain times.

LOOKING AHEAD: BROADER CRYPTO IMPLICATIONS

The Pectra upgrade not only marks a milestone for Ethereum but also carries major implications for the entire crypto ecosystem. With enhanced staking and smoother validator operations, Ethereum is now better positioned to support a new generation of decentralized applications and smart contracts.

This significant price rally, the most substantial in nearly four years, is fostering optimism about potential investments and innovative solutions emerging from the network. Industry experts now suggest that as Ethereum’s technological capabilities improve, it could lead to a revitalized wave of developments, attracting additional inflows from both retail and institutional investors.

As traders and enthusiasts continue to follow the unfolding story, the latest surge offers a glimpse into Ethereum’s transformative potential. All eyes remain on the network as it leverages heightened confidence and technical prowess to lead the crypto market into its next phase of growth.

Source: CryptoEconomy

Risk Warnings and Disclaimers

You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.

Add to Favorites

Manuel

Bond

Economic

The cost of insuring exposure to U.S. government debt has climbed noticeably over the past month and remains stubbornly high, as jittery investors brace for a looming U.S. borrowing-limit political debate as well as overall policy uncertainty.

Spreads on U.S. credit default swaps (CDS) - market-based gauges of the risk of a sovereign default - widened to their highest since the debt ceiling crisis of 2023 in recent weeks. The size of the market and trading volumes have also increased recently, Barclays said in a note this week, in a sign that a product generally considered to be niche is garnering more investor attention.

While years ago buying protection for a U.S. default was an unpopular trade, things have changed recently because of policy uncertainty in Washington, said Greg Peters, co-chief investment officer of PGIM Fixed Income. "Now, with the debt ceiling and everything else going on, no one wants to be short that option," he said.

U.S. sovereign CDS spreads have increased not just for short-dated maturities but across the curve, with one-year and five-year spreads at their highest since May 2023, when the U.S. was on the verge of a default because of political brinkmanship over the debt ceiling.

On Friday, those spreads stood at 60 basis points and 56 basis points, respectively - a touch lower than in recent weeks but still significantly higher than in March, S&P Global Market Intelligence data showed.

The rise in the protection costs has gained momentum after April 2, when U.S. President Donald Trump announced sweeping tariffs, which in the following days sparked a sharp selloff in the Treasury market, the bedrock of the global financial system.

"What you've seen since April 2 is a real rise in that risk premium," said Peters.

After days of heavy selling, Treasuries rallied after Trump announced a 90-day tariff pause for most U.S. trading partners, a move likely prompted by the tariff-fueled selloff. Benchmark 10-year yields were last at 4.36%, about 20 basis points lower than the high they touched on April 11, the day tariffs were paused.

Still, another key measure of risk embedded in Treasury bonds, which captures the premium investors charge for policy uncertainty, has remained elevated in recent weeks, according to New York Fed data.

The U.S. government reached its statutory borrowing limit in January and began employing "extraordinary measures" to keep it from breaching the cap and risking a potential default.

Barclays analysts said in a note this week the so-called X-date, when the government will no longer be able to pay all its obligations, will likely fall in late August or early September, but that an economic slowdown could put pressure on the Treasury's cash position and pull that date forward.

Treasury Secretary Scott Bessent said earlier this week that the department was "at the warning track" in terms of exhausting remaining borrowing capacity under the federal debt ceiling, but vowed that the government would not default on its obligations.

Investors held about $3.9 billion worth of active credit insurance contracts on U.S. government debt as of May 2, Barclays said, citing data from the Depository Trust and Clearing Corporation, a financial market infrastructure company, up from $2.9 billion at the beginning of the year.

Over the past three months, credit insurance on U.S. government debt has been the 12th most-traded single-name CDS contract globally, with weekly trading averaging over $625 million, said Barclays.

Source: Reuters

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

Add to Favorites

Damon

Political

The explosions in Amritsar - the first heard in the three-day-old conflict between the nuclear-armed neighbours - could mark a further expansion in the hostilities that have alarmed world powers.

Projectiles and flashes were seen in the night sky above the Indian Kashmir city of Jammu that was plunged into a blackout in the second night of blasts in the region's winter capital, officials and a Reuters journalist said.

"Drones have been sighted ... They are being engaged," said an Indian military official who asked not to be named.

Ten blasts were heard near the airport in the Indian Kashmir city of Srinagar and there were explosions in a dozen other locations in the contested region, other security officials added.

There was no immediate comment from Pakistan which dismissed Indian accusations that it had launched attacks on the same area on Thursday night.

The old foes have been clashing since India struck several areas that it described as "terrorist infrastructure" in Pakistan on Wednesday in retaliation for a deadly attack on Hindu tourists in Indian Kashmir last month.

Pakistan dismissed Indian accusations that it was involved. Both countries have exchanged cross-border fire and shelling and sent drones and missiles into each other's airspace.

Around 48 people have been killed since Wednesday, according to casualty estimates on both sides of the border that have not been independently verified.

Tourists and villagers fled border zones, residents rushed to stockpile food and people were told to stay indoors in cities in Kashmir and beyond. India's cricket board on Friday suspended the IPL - the sport's richest tournament - and the Pakistan Super League postponed its remaining eight matches.

The relationship between India and Pakistan has been fraught with tension since they gained independence from colonial Britain in 1947. The countries have fought three wars, two of them over Kashmir, and clashed many times.

CLASHING ACCUSATIONS

Item 1 of 4 A man uses his mobile phone to film debris of shops damaged by cross-border shelling in Lagama village near the Line of Control (LoC) between India and Pakistan, in Indian Kashmir's Baramulla district, May 9, 2025. REUTERS/Stringer

[1/4]A man uses his mobile phone to film debris of shops damaged by cross-border shelling in Lagama village near the Line of Control (LoC) between India and Pakistan, in Indian Kashmir's Baramulla district, May 9, 2025. REUTERS/Stringer Purchase Licensing Rights, opens new tab

India's airforce earlier said Pakistan used Turkish drones to attack 36 locations on India's west and northwest, in Kashmir and further afield in states bordering Pakistan all the way to the edge of the Arabian Sea on Thursday night into Friday morning.

India responded with drones on targets in Pakistan and destroyed one air defence system, Indian Air Force officer Vyomika Singh told a media briefing.

Pakistan Information Minister Attaullah Tarar had dismissed earlier Indian accusations of Pakistani attacks as "baseless and misleading" and said Pakistan had not carried out any "offensive actions".

In Pakistani Kashmir, officials said heavy shelling from across the border killed five civilians, including an infant, and wounded 29 others in the early hours of Friday.

The fighting is the deadliest since a limited conflict between the two countries in Kashmir's Kargil region in 1999.

Sirens had blared for more than two hours earlier on Friday in in Amritsar, which houses the Golden Temple revered by Sikhs.

Tourists fled the city by road as the airport was closed.

"We really wanted to stay but the loud sounds, sirens, and blackouts are giving us sleepless nights. Our families back home are worried for us so we have booked a cab and are leaving," said a British national who did not want to be named.

Schools and coaching centres were closed in the Bikaner region of India's desert state of Rajasthan, and residents near the Pakistan border said they were asked to move further away and consider moving in with relatives or using accommodation arranged by the government.

Further south in Bhuj in Gujarat, authorities said tourist buses had been kept on standby in case they needed to evacuate people near the Pakistan border.

India's Directorate General of Shipping directed all ports, terminals and shipyards to increase security, amid "growing concerns regarding potential threats".

Indian shares fell for a second straight session on Friday, losing about $83 billion in market value, with both key stock indexes losing 1.1%.

Pakistan's benchmark share index (.KSE), opens new tab closed 3.52% higher with traders crediting a fall off in violence in Pakistani territory after Thursday's clashes.

Reporting by Aftab Ahmed in Jammu, Charlotte Greenfield, Gibran Naiyyar Peshimam and Asif Shahzad in Islamabad, Saurabh Sharma in Amritsar, Rupam Jain in New Delhi, Ariba Shahid in Karachi, Fayaz Bukhari in Srinagar,; Additional reporting by Nilutpal Timsina in Bengaluru; Writing by Sakshi Dayal and YP Rajesh; Editing by Jacqueline Wong, Raju Gopalakrishnan and Andrew Heavens

Source: Reuters

Risk Warnings and Disclaimers

Add to Favorites

Adam

Commodity

U.S. energy firms this week cut the number of oil and natural gas rigs operating to their lowest since January, energy services firm Baker Hughes said in its closely followed report on Friday.

The oil and gas rig count, an early indicator of future output, fell by six to 578 in the week to May 9.

Baker Hughes said this week's decline puts the total rig count down 25, or 4% below this time last year.

Baker Hughes said oil rigs fell by five to 474 this week, their lowest since January, while gas rigs were unchanged at 101.

The oil and gas rig count declined by about 5% in 2024 and 20% in 2023 as lower U.S. oil and gas prices over the past couple of years prompted energy firms to focus more on boosting shareholder returns and paying down debt rather than increasing output.

Even though analysts forecast oil prices would decline for a third year in a row in 2025, the U.S. Energy Information Administration (EIA) this week projected crude output would rise from a record 13.2 million barrels per day (bpd) in 2024 to around 13.4 million bpd in 2025.

That increase in production, however, was lower than the EIA's outlook in April due to lower oil price forecasts as U.S. tariffs increase the chances of weaker global economic growth and oil demand.

On the gas side, the EIA projected an 88% increase in spot gas prices in 2025 would prompt producers to boost drilling activity this year after a 14% price drop in 2024 caused several energy firms to cut output for the first time since the COVID-19 pandemic reduced demand for the fuel in 2020. [NGAS/POLL]

The EIA projected gas output would rise to 104.9 billion cubic feet per day (bcfd) in 2025, up from 103.2 bcfd in 2024 and a record 103.6 bcfd in 2023.

Oil and gas drilling permit applications in Texas, the top U.S. oil-producing state, hit a four-year low in April amid concerns that rising OPEC+ supplies and a trade war will continue to hit crude prices, consultancy Enverus said on Thursday.

Operators in Texas submitted 570 new drilling permit applications in April, down from 795 in March and the lowest number since February 2021, according to Enverus.

Shale producer Diamondback said on Monday it will drop three rigs in the second quarter, and could reduce activity further if oil prices fall more. Rival Coterra Energy is reducing its 2025 Permian activity by three rigs, while producer Matador Resources is dropping one drilling rig by the middle of 2025.

Source: Reuters

Risk Warnings and Disclaimers

Add to Favorites

Adam

Economic

U.S. President Donald Trump will touch down in the Persian Gulf region – or as he may soon be calling it, the Arabian Gulf – on May 13, for an official trip with stops in Saudi Arabia, Qatar and the United Arab Emirates.

The stakes are high, as the visits take place amid turbulent geopolitical tensions. On the agenda will be Israel-Gaza war ceasefire talks, oil, trade, investment deals, and the potential for new policy developments in the areas of advanced semiconductor exports and nuclear programs.

“We expect to see a lot of announcements. And I think in a broad spectrum of areas as well,” Monica Malik, chief economist at Abu Dhabi Commercial Bank, told CNBC’s Dan Murphy on Friday. She noted the potential removal of Trump’s 10% tariffs on aluminum and steel, which would be a positive for the Gulf states as some of them export those metals to the U.S., though they make up only a small percentage of the countries’ GDPs.

Trump has long enjoyed a warm relationship with Gulf Arab states, in particular the UAE and Saudi Arabia, where his children have several business ventures and planned real estate projects. Those relationships could strengthen the countries’ hands when it comes to negotiating new trade deals – while also raising concerns among critics over potential conflicts of interest, accusations the Trump family rejects.

During the president’s initial term in office, his first overseas trip was to Saudi Arabia – a country now hosting the negotiations that Trump hopes will end the Russia-Ukraine war, making the kingdom ever more important to Washington. Qatar, meanwhile, has played a central role in negotiations between Israel and Hamas over ceasefires and hostage releases.

Wall Street and AI in the Gulf

The presidential visit is drawing several Wall Street and Silicon Valley titans to the Saudi kingdom. A Saudi-U.S. investment forum announced just this week and set to take place on May 13 in Riyadh will feature guests including BlackRock CEO Larry Fink, Palantir CEO Alex Karp, and CEOs of major firms like Citigroup, IBM, Qualcomm, Alphabet , and Franklin Templeton, among others. White House AI and crypto czar David Sacks will also be in attendance.

“We also expect to see a lot of investment deals being announced,” Malik said. “And both ways, we’ve already seen the UAE announce a number of investments in the U.S. in areas such as AI, energy, aluminum, but we also think that there will be opportunities for U.S. companies to increase investment.”

Both Saudi Arabia and the UAE have invested heavily in AI infrastructure with the goal of becoming global hubs for the technology. Therefore, likely top of mind for those leaders is the future of U.S. semiconductor exports, the most advanced of which they so far have not gained access to due to national security concerns. But that may soon be changing.

The Trump administration on Wednesday announced its plan to rescind a Biden era “AI diffusion rule,” which imposed strict export controls on advanced AI chips, even to U.S.-friendly nations. The rule will be replaced with “a much simpler rule that unleashes American innovation and ensures American AI dominance,” a U.S. Commerce Department spokesperson said Wednesday, though the details of the new rule have not yet been shared.

UAE-based AI firm G42 has made efforts to align with U.S. regulations, including divesting from Chinese companies and partnering with Microsoft, which last year invested $1.5 billion in G42.

Nuclear ambitions

The Trump administration has been actively engaged in talks with Iran over its nuclear program – talks that the UAE and Saudi Arabia have expressed support for. That enthusiasm marks a stark contrast to those countries’ attitudes toward any U.S. deals with Tehran during the Obama years.

At the same time, Saudi Arabia wants its own civilian nuclear program and has asked the U.S. for approvals and assistance in this direction. Any U.S. support for a Saudi nuclear program was previously contingent on Saudi Arabia normalizing diplomatic relations with U.S. ally Israel – but that could change during this visit, according to media reports citing sources with knowledge of the matter.

U.S. Energy Secretary Chris Wright, during a visit to the kingdom in April, said that Saudi Arabia and the U.S. were on a “pathway” to a civil nuclear agreement – but that any further announcements would come from Trump himself.

Israel-Gaza negotiations

Another major topic will be the future of Gaza. Trump has vowed to bring about an end to the war, while also controversially suggesting that the U.S. could take control of the war-ravaged Strip which he described as “important real estate,” comments that drew strong rebukes from Arab leaders.

The U.S. has continued to push for ceasefire deals, most recently floating a 21-day cessation of hostilities and release of some hostages, while Israel this week approved expanding fighting and territorial control in Gaza.

“We have yet to hear a comprehensive plan from the Arab world,” Greg Branch, founder of UAE-based Branch Global Capital Advisors, told CNBC on Friday while discussing Trump’s upcoming visit.

“If we’re going to see a response that’s going to be Arab-led, it’s probably now or never,” Branch said. “I think that will be handled very delicately behind the scenes … probably more of a long-term geopolitical risk than any immediate macro risk.”

Oil and financing

Branch suggested that lifting U.S. sanctions on Syria under its new government could also potentially be discussed. Meanwhile, reports that the Trump administration will announce a U.S. renaming of the Persian Gulf to the Arabian Gulf would be enthusiastically welcomed by Arab states, but could draw severe anger from Iran at a time of delicate nuclear negotiations with Tehran.

Oil prices will also be in focus; Trump has long pushed OPEC states, led by Saudi Arabia, to pump more oil to lower prices for American consumers. For a combination of reasons, Saudi Arabia is doing precisely that – but it may have to change course in the coming months if prices stay subdued, hurting the kingdom’s revenues.

In that vein, financing will be an important agenda item for the kingdom during Trump’s visit, according to ADCB’s Malik.

Saudi Arabia in November pledged to invest $600 billion in the U.S. over the course of Trump’s term — but it also has sky-high costs for its own Vision 2030 investment ambitions. Lower global oil prices and big-ticket public spending projects have brought about widening budget deficits for Riyadh.

“With oil prices where they are, Saudi will look at more financing support from America as well as they look to progress with their investment program,” Malik said.

Cnbc:source

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

Add to Favorites

Adam

Economic

Central Bank

The first wave of Federal Reserve officials to weigh in after this week's policy meeting reiterated on Friday that the current economic uncertainty calls for monetary policy patience as Trump administration trade policy boosts risks to the outlook.

When it comes to the current state of Fed policy, "we're in a good place," New York Fed President John Williams said in an interview with Bloomberg Television. Declining to speculate where monetary policy will go amid the uncertainty, he said, "let's collect more data, information about what's happening with trade policy" and its impact on the economy and then decide what that means for the Fed's next policy steps.

Fed Governor Adriana Kugler, who spoke in a separate Bloomberg Television interview, said the healthy economy "gives us time" to make more progress lowering inflation pressures before needing to consider a next step. Both Williams and Kugler described the current state of interest rate policy as placing a modest amount of restraint on economic activity.

The U.S. central bank held its benchmark interest rate steady in the 4.25%-4.50% range on Wednesday and flagged the rising economic uncertainty.

Speaking in a press conference after the end of the two-day policy meeting, Fed Chair Jerome Powell said, "despite heightened uncertainty, the economy is still in a solid position," adding "we believe that the current stance of monetary policy leaves us well positioned to respond in a timely way to potential economic developments."

President Donald Trump's trade policy is the key source of uncertainty for the Fed and broader economy. In a bid to bring back more manufacturing to the U.S., Trump has slammed nations around the world, particularly China, with very high tariffs.

Many economists believe these import taxes will drive up inflation pressures from levels already above the Fed's 2% target. At the same time, they're likely to depress economic growth and boost unemployment. But there's little clarity on how this will all play out, with the outlook further complicated by Trump's constant tariff adjustments and assurances that a slew of trade deals are imminent.

Williams, speaking at a conference in Iceland before his television interview on Friday, said "my own view is I expect growth this year to be ... considerably slower than it was last year, inflation to be higher, unemployment ... to move up over the year."

TRICKY TRADE-OFFS

The potential economic impact of tariffs presents substantial challenges for the U.S. central bank's rate-setting Federal Open Market Committee. With monetary policy charged with keeping inflation low and the job market strong, policymakers may face difficult trade-offs in which part of the mandate most needs addressing.

Fed Governor Michael Barr, in the text of a speech to the same event in Iceland, concurred with the view that tariffs could push up inflation while depressing the job market.

"The FOMC may be in a difficult position if we were to see both rising inflation and rising unemployment," he said. Like his colleagues, Barr said "given the economy's strong starting point and the progress we have made in bringing inflation back toward our 2% objective, monetary policy is in a good position to adjust as conditions unfold."

The Fed may be on track to get its first taste of how tariffs are affecting inflation on Tuesday when the U.S. government releases its Consumer Price Index for April.

"Tariffs should start to affect the inflation data in April, with clearer evidence likely in May and June," Bank of America economists said in a research note on Friday. "We expect tariff-driven inflation to be temporary, but our conviction is low as there are good reasons why it could be more persistent than we expect."

Even as Fed officials have noted a difficult trade-off balancing both sides of their mandates, they've collectively agreed that keeping inflation pressures contained is critical.

Source : finance.yahoo

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

Add to Favorites

Catherine Richards

Russia-Ukraine Conflict

The United States and its European allies are finalising a proposal for a 30-day ceasefire in Ukraine that if refused would see them jointly impose new sanctions on Russia, a French diplomatic source said on Friday.

U.S. President Donald Trump called on Thursday for a 30-day unconditional ceasefire between Russia and Ukraine, warning that Washington and its partners would impose further sanctions if the ceasefire was not respected.

Ukraine has expressed readiness to accept the U.S. proposal. Russia has unilaterally declared a three-day ceasefire running from May 8-10 to coincide with the 80th anniversary of the end of World War Two.

"We're not completely with a finalised project, but we hope that we're at a moment of convergence," said the diplomatic source, speaking on condition of anonymity.

"What could happen in the coming hours and days, there could be an announcement of a ceasefire either of 30 days or compartmentalized, which is still being discussed."

The source said there were still discussions on whether to announce a unilateral ceasefire or to give a short response time to Russia, although if it refused then new American and EU sanctions would be imposed on Moscow.

The two sides are coordinating on the sanctions packages.

French Foreign Minister Jean-Noel Barrot, who was in Washington last week to meet U.S. Secretary of State Marco Rubio, will join President Emmanuel Macron in Kyiv on Saturday, where there will be a hybrid meeting of Ukraine's closest allies and discussions on the U.S.-European proposal.

The source said political and technical talks between Europe and the U.S. had stepped up since last week. Trump and Macron spoke on Thursday to discuss the ceasefire proposal.

"We felt in the discussions with the Americans a certain irritation towards the Russian posture, the lack of reactivity and seriousness in its responses to what was proposed before," the source said. "The decision is practically taken."