New Zealand Must Address Its High Cost of Capital, Treasury Says
In a keynote address at the New Zealand Economics Forum Friday in Hamilton, Rennie identified 'relatively high tax rates on businesses' as part of a policy landscape that discourages investment and the inflow of foreign capital.
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Bitcoin drops 3% after touching record highs as crypto rolls over
Bitcoin (BTC-USD) retreated more than 3% from its record highs on Thursday after hotter than expected inflation soured expectations of a large rate cut in September and after Treasury Secretary Scott Bessent signaled the US won't be purchasing or selling its bitcoin reserve. On Wednesday, bitcoin touched an all-time high past $123,500 per token in anticipation of looser monetary policy and corporate purchases. Crypto rolled over after July's producer price index came in much higher than expected. During an interview with Fox Business this morning, Bessent said US reserves of bitcoin amount to around $15 billion or $20 billion at today's prices. "We've also started to get into the 21st century — a bitcoin strategic reserve. We're not going to be buying that, but we are going to use confiscated assets and continue to build that up. We're going to stop selling that," he said. Expectations of Fed rate cuts, coupled with heavy purchases from corporate treasurys, have driven up the price of the asset this year. The cryptocurrency has gained 25% year to date and has rallied roughly 57% since the April lows. Inflows into spot exchange-traded funds, along with purchases from public companies copying the blueprint of software firm-turned-bitcoin juggernaut Strategy (MSTR) by adding bitcoin to their balance sheets, have been key drivers of this year's token rally. Strategists also point to the Trump administration's pro-crypto stance as a major catalyst. "The administration is pushing crypto. They are pushing bitcoin. Bitcoin is the lead dog in the crypto market," Tom Essaye, founder of Sevens Report Research, told Yahoo Finance earlier this week. "So is it short-term a little frothy? Sure," he added. "But longer term, there are some fundamental changes here that I think are bullish for it, and we'll send it much higher in the future." Last week, President Trump issued an executive order directing the Labor Department to explore allowing 401(k) plans to hold cryptocurrencies and other alternative assets, a move that could significantly expand retail access to crypto. The price surge also comes as US equities have notched all-time records on expectations the Federal Reserve will cut interest rates in September, and that Trump's next Fed chair pick will likely favor looser monetary policy. Meanwhile, ethereum (ETH-USD) prices also retreated more than 3% on Thursday after rising to near record levels as Wall Street grows increasingly bullish on the world's second-largest cryptocurrency by market cap. Companies have been adding ether to their balance sheets as a way to gain exposure to the tech infrastructure behind decentralized finance and digital assets, such as stablecoins. This week, Bitmine Immersion Technologies (BMNR), an ethereum treasury company, announced plans to sell up to another $20 billion worth of stock to boost its holdings of the cryptocurrency. "We have stated multiple times we believe Ethereum is the biggest macro trade over the next 10-15 years," Fundstrat head of research Tom Lee, who also serves as chairman of Bitmine, wrote in a note Wednesday. Lee noted the majority of Wall Street crypto projects and stablecoins, or digital tokens backed by assets like the US dollar, are being built on the ethereum infrastructure. Ether, the native token of ethereum, is up more than 50% since the GENIUS Act legislation, which creates guardrails for the stablecoin industry, was passed last month. Additionally, the Securities and Exchange Commission's recent "Project Crypto" announcement, an initiative to modernize the agency and establish clear regulations around the digital asset industry, has also fueled the rally in ethereum. Fundstrat sees ETH hitting prices moving as high as $15,000 by year-end. Ines Ferre is a Senior Business Reporter for Yahoo Finance. Follow her on X at @ines_ferre. Click here for in-depth analysis of the latest stock market news and events moving stock prices 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
Yahoo
13 minutes ago
- Yahoo
Bitcoin sinks following hotter-than-expected inflation print, Bessent comments on strategic reserve
Bitcoin (BTC-USD) retreated more than 3% from its record highs on Thursday after hotter-than-expected inflation soured expectations of a large rate cut in September and Treasury Secretary Scott Bessent signaled the US won't be purchasing bitcoin for its strategic reserve. On Wednesday, bitcoin touched an all-time high past $123,500 per token in anticipation of looser monetary policy and corporate purchases. Crypto rolled over after July's producer price index came in much higher than expected. During an interview with Fox Business, Bessent said US reserves of bitcoin amount to around $15 billion or $20 billion at today's prices. "We've also started to get into the 21st century — a bitcoin strategic reserve. We're not going to be buying that, but we are going to use confiscated assets and continue to build that up," he said. Expectations of Fed rate cuts, coupled with heavy purchases from corporate treasurys, have driven up the price of the asset this year. The cryptocurrency has gained 25% year to date and has rallied roughly 57% since the April lows. Inflows into spot exchange-traded funds, along with purchases from public companies copying the blueprint of software firm-turned-bitcoin juggernaut Strategy (MSTR) by adding bitcoin to their balance sheets, have been key drivers of this year's rally. Strategists also point to the Trump administration's pro-crypto stance as a major catalyst. "The administration is pushing crypto. They are pushing bitcoin. Bitcoin is the lead dog in the crypto market," Tom Essaye, founder of Sevens Report Research, told Yahoo Finance earlier this week. "So is it short-term a little frothy? Sure," he added. "But longer term, there are some fundamental changes here that I think are bullish for it." Last week, President Trump issued an executive order directing the Labor Department to explore allowing 401(k) plans to hold cryptocurrencies and other alternative assets, a move that could significantly expand retail investor access to crypto. The price surge also comes as US equities have notched all-time records on expectations the Federal Reserve will cut interest rates in September, and that Trump's next Fed chair pick will likely favor looser monetary policy. Meanwhile, ethereum (ETH-USD) prices also retreated more than 3% on Thursday after rising to near record levels as Wall Street grows increasingly bullish on the world's second-largest cryptocurrency by market cap. Companies have been adding ether to their balance sheets as a way to gain exposure to the tech infrastructure behind decentralized finance and digital assets, such as stablecoins. Ines Ferre is a Senior Business Reporter for Yahoo Finance. Follow her on X at @ines_ferre. Click here for in-depth analysis of the latest stock market news and events moving stock prices 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
Yahoo
13 minutes ago
- Yahoo
Bitcoin slips as U.S. rules out buying for strategic reserve
Bitcoin slips as U.S. rules out buying for strategic reserve originally appeared on TheStreet. Bitcoin prices fell sharply on Aug. 14 after U.S. Treasury Secretary Scott Bessent said the government has no plans to purchase additional Bitcoin for its planned strategic reserve, opting instead to rely on confiscated holdings. Speaking on Mornings with Maria, Bessent's comments came in response to questions about U.S. gold reserves and whether the government would consider similar moves with Bitcoin. 'I doubt we're going to revalue it, but we are going to keep it there as a store of value for the American people,' Bessent said when asked if the Treasury planned to revalue gold. He added that the U.S. has begun incorporating Bitcoin into its strategic reserves, but with a clear caveat. 'We've also started to get into the 21st century, a Bitcoin strategic reserve. We're not going to be buying that, but we're going to use confiscated assets and continue to build that up. We're going to stop selling that,' he said. The remarks dampened recent optimism among crypto investors who had speculated that the U.S. might enter the market as a buyer, potentially creating significant demand. Instead, Bessent's clarification signals that any growth in the reserve will come from seized digital assets — often the result of law enforcement actions against illicit activity — rather than open market purchases. The decision contrasts with the approach taken by some other nations, such as El Salvador, which has regularly bought Bitcoin as part of its national strategy. Analysts say the U.S. move may limit near-term institutional buying pressure but could still tighten supply if the government permanently holds confiscated coins. Following Bessent's interview, Bitcoin slipped from above $118,000 to near $117,000, with broader crypto markets also turning lower. The crypto market tumbled as over $1.05 billion in leveraged positions were wiped out in 24 hours, with longs losing $778M, per Coinglass. Bybit saw the biggest hit at $447M in liquidations, including a $10M BTC-USD position. Bitcoin slips as U.S. rules out buying for strategic reserve first appeared on TheStreet on Aug 14, 2025 This story was originally reported by TheStreet on Aug 14, 2025, where it first appeared. 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
