On Monday (January 6), the dollar index remained strong at 108.95, with the U.S. December ISM manufacturing slightly rising, boosting the Fed's hawkish pricing.
Gold opened rebounding to $2641, with heightened Middle East risk aversion. Although Hamas is prepared to release 34 hostages in the first phase of the exchange agreement, U.S. President Biden will approve the sale of $8 billion worth of arms to Israel before leaving office. Wall Street-listed whale MicroStrategy may issue $2 billion in preferred shares to purchase more Bitcoin, stimulating the price to rebound to around $98,500.
Hamas is prepared to release 34 hostages as Biden plans to sell $8 billion in arms to Israel.
According to a senior Hamas official, the Palestinian militant organization is prepared to release 34 Israeli hostages in the 'first phase' of a potential prisoner exchange agreement.
The official said: "As part of the first phase of the prisoner exchange agreement, Hamas has agreed to release 34 Israeli prisoners from the list submitted by Israel."
The office of Israeli Prime Minister Benjamin Netanyahu stated that Hamas has not provided the list of hostages to be released under the agreement. A Hamas official, speaking on condition of anonymity as he is not authorized to discuss the ongoing indirect negotiations with the media, indicated that the initially exchanged hostages would include all women, children, the elderly, and sick captives still held in Gaza.
The official said that Hamas needs time to determine whether they are alive.
"Hamas has agreed to release these 34 prisoners, regardless of life or death. However, the organization needs a week of calm to communicate with the captors and determine who is alive and who is dead," the official said.
During the attack that triggered the war on October 7, 2023, a total of 251 hostages were taken, of which 96 remain in Gaza, with the Israeli military claiming that 34 have died.
The well-known financial blog ZeroHedge reported that Biden notified Congress late last week that he would approve one last large-scale arms sale to Israel before leaving office. Axios reported on Friday that the U.S. State Department has informally notified Congress of an $8 billion arms deal reached with Israel, which includes ammunition for fighter jets and attack helicopters as well as artillery shells.
Despite being hit by progressive Democrats in polls, including in key states like Michigan with a large Arab American population, the Biden administration remains committed to this approach. The issue of Israel helped Trump win easily, as these communities want to 'punish' Biden and the Democrats.
Currently, sources from Gaza's health department state that at least 45,000 Palestinians have died in the Gaza war since the Hamas terrorist attack on October 7, 2023.
Amnesty International is one of the humanitarian organizations claiming that Israel is committing genocide in Gaza, calling on all countries to cut off arms flows.
Amnesty International Secretary General Agnes Callamard said: "Countries continuing to transfer arms to Israel must know they are violating their obligations to prevent genocide and may become complicit in genocide. All countries influential over Israel, especially major arms suppliers like the U.S. and Germany, as well as other EU member states and the UK, must act immediately to stop Israel’s atrocities against Palestinians in Gaza."
Here is a partial list of the most controversial items in this promotion: AIM-120C-8 AMRAAM air-to-air missile, Hellfire AGM-114 missiles, 155mm artillery shells, small diameter bombs, JDAM kits, and 500-pound bombs.
Many of the U.S. weapons mentioned above, especially the 500-pound bombs, have been condemned by human rights organizations and some European politicians for causing significant civilian casualties. Israel claims it has conducted precise strikes on Hamas targets, but the design of the 500-pound bombs is meant to cause widespread destruction.
MicroStrategy plans to issue $2 billion in preferred shares to purchase more Bitcoin.
CoinTelegraph reports that MicroStrategy plans to raise $2 billion through the issuance of perpetual preferred shares to purchase more Bitcoin, an action that will expand the company's 21/21 initiative.
The company explained in a statement last Friday that perpetual preferred shares can be obtained by converting MicroStrategy's Class A common stock, paying cash dividends, redeeming shares, or a combination of the above methods.
This issuance is unrelated to MicroStrategy's ongoing plan to raise $21 billion in equity and $21 billion in fixed income instruments, which is a key strategy implemented by the company in recent months to drive its Bitcoin buying spree through preferred convertible notes and debt.
MicroStrategy plans to leverage the issuance of perpetual preferred shares to strengthen its balance sheet and purchase more Bitcoin, expected to occur at some point this quarter.
The company explained: "However, whether to continue and complete this issuance is entirely up to MicroStrategy and is subject to market and other conditions. MicroStrategy may choose not to proceed or complete this issuance at all."
The issuance of perpetual preferred shares also 'takes precedence over' MicroStrategy's Class A common stock, meaning holders have priority in the event of bankruptcy or liquidation.
Gold Technical Analysis
FXStreet analysts stated that looking back at the consolidated last quarter of 2024, gold prices have been caught in severe cyclical fluctuations, with buying often hovering around $2650. The 50-day exponential moving average (EMA) best reflects gold's sideways consolidation, which has been flat since early November, acting as a buying trap and limiting price movements.
Bulls have repeatedly failed to push prices back above $2720, while the recent technical bottom of $2600 has intensified selling pressure.
Bitcoin Technical Analysis
CoinTelegraph noted that last Friday, Bitcoin rose and closed above the moving average, indicating that selling pressure is easing.
Bulls will attempt to consolidate their position by pushing prices above the strong resistance level of $100,000. If successful, Bitcoin could soar to an all-time high of $108,353. Sellers are expected to staunchly defend this level, but if buyers break through, the currency pair could bounce back to $126,706.
Conversely, a significant drop in price below $100,000 and below the moving average would indicate a consolidation in the short term. Bitcoin may fluctuate between $90,000 and $100,000 in the coming days.
The 20 EMA on the 4-hour chart is trending upward, with the relative strength index (RSI) close to 62, indicating that buyers have the advantage. Prices have rebounded from the 20 EMA, and bulls will next attempt to break through the $100,000 barrier. If they succeed, Bitcoin could rise to $102,800 and then to $105,350.
Conversely, falling below the 20 EMA would weaken bullish strength. The currency pair could drop to the 50 simple moving average.
