[1/2]Representations of cryptocurrency Bitcoin and U.S. dollar are seen in this illustration, August 10, 2022. REUTERS/Dado Ruvic/Illustration Acquire Licensing Rights

NEW YORK, Oct 24 (Reuters) - The dollar climbed against a basket of currencies on Tuesday as a slew of fresh economic data highlighted the strength of the U.S. economy relative to the United Kingdom and the European Union.

U.S. business output ticked higher in October as the manufacturing sector pulled out of a five-month contraction on a pickup in new orders, and services activity accelerated modestly amid signs of easing inflationary pressures, S&P Global said on Tuesday.

It was the latest sign the U.S. economy is withstanding the surge in interest rates, spurred by the Federal Reserve's campaign to beat back inflation.

The dollar index , which measures the currency's strength against a basket of six rivals, was 0.6% higher at 106.19. The index had slipped to a one-month low of 105.35 earlier in the session.

"The big picture still clearly remains intact, especially when you compare U.S. PMI to the concurrent releases out of the UK and the euro zone this morning," Helen Given, FX trader at Monex USA, said.

"While all three PMI readings for the U.S. (manufacturing, services, and composite) were positive, both the UK and the euro zone showed contractions, re-emphasizing the continuing resilience of the larger U.S. economy in comparison to its peers around the world," she said.

Earlier on Tuesday, survey data showed that euro zone business activity took a surprise turn for the worst this month in a broad-based downturn across the region, suggesting the bloc may slip into recession.

The euro reversed course and was last 0.7% lower at $1.05975.

German data was particularly glum. The purchasing managers' index survey showed that the service sector joined the manufacturing sector in contractionary territory.

Global financial markets have been gripped by a surge in U.S. bond yields, which on Monday pushed the all-important 10-year Treasury yield above 5% to its highest since July 2007. The rise in yields drove the dollar index to an almost one-year high earlier this month.

The yield then dropped sharply later on Monday. Analysts said one catalyst was a social media message by prominent hedge fund investor Bill Ackman, saying he had closed out his bet against longer-dated bonds and that geopolitical worries were a factor. Yields rise as prices fall and vice versa.

The dollar was last up 0.1% at 149.875 yen , keeping traders nervous about possible government intervention to prop up the Japanese currency.

The British pound was last down 0.59% at $1.21765. Britain's businesses reported another decline in activity this month and cost pressures cooled further, surveys showed on Tuesday, underlining the risk of recession.

The Bank of England is due to set interest rates on Thursday next week, after the Federal Reserve's decision on Wednesday. The European Central Bank's meeting ends this Thursday, with traders expecting all three central banks to hold rates steady.

In cryptocurrency markets, bitcoin extended its rise, helped by speculation that an exchange-traded bitcoin fund is imminent. The world's largest cryptocurrency by market cap was last up 4.1% at $34,423.

Reporting by Saqib Iqbal Ahmed; Additional reporting by Harry Robertson in London and Brigid Riley in TokyoEditing by Emelia Sithole-Matarise, Mark Potter and Sharon Singleton

Our Standards: The Thomson Reuters Trust Principles.

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Dollar higher as US business activity ticks up in October - Reuters

In recent years, cryptocurrencies have evolved from a niche technology to a mainstream asset class with far-reaching implications for businesses of all sizes. Cryptocurrencies like Bitcoin and Ethereum have shown the world that blockchain technology is not just a fad, but a transformative force. Businesses that embrace cryptocurrencies can enjoy numerous advantages, making them more efficient, secure, and competitive. Here are ten key advantages of using cryptocurrency in business:

Global Accessibility: Cryptocurrencies operate on a decentralized network that is accessible from anywhere in the world. This means that businesses can reach a global customer base without dealing with currency exchange rates and international transaction fees.

Lower Transaction Costs: Traditional financial systems often involve intermediaries like banks and payment processors, which charge fees for their services. Cryptocurrencies can significantly reduce these transaction costs, making it more affordable for businesses to send and receive payments.

Faster Transactions: Cryptocurrency transactions are processed on blockchain networks, enabling near-instantaneous transfers. This is especially beneficial for international business transactions that may take days using traditional banking systems.

Security and Transparency: Blockchain technology offers a high level of security, and transactions are recorded in an immutable ledger, making them transparent and less susceptible to fraud.

Financial Inclusion: Cryptocurrencies can provide financial services to unbanked or underbanked populations, broadening the customer base for businesses and expanding financial inclusion.

Ownership and Control: Cryptocurrency users have full ownership and control over their digital assets. This eliminates the need for third-party intermediaries and reduces the risk of funds being frozen or seized.

Smart Contracts: Smart contracts are self-executing agreements with the terms of the contract written directly into code. They automate complex business processes, reducing the risk of disputes and the need for intermediaries.

Micropayments: Cryptocurrencies enable businesses to process tiny transactions cost-effectively. This opens up new opportunities for revenue streams in areas like content monetization and the Internet of Things (IoT).

Decentralization: The decentralized nature of cryptocurrencies eliminates the risk of a single point of failure. This makes businesses more resilient to outages or disruptions in traditional systems.

Hedging Against Inflation: Cryptocurrencies can serve as a hedge against fiat currency devaluation and inflation. Holding a portion of assets in cryptocurrencies can protect businesses from the loss of purchasing power.

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10 Key Advantages of Using Cryptocurrency in Business - Analytics Insight

The cyclical nature of cryptocurrency trading, often compared to the four seasons, has captured the attention of investors, especially given the recent market shifts. Cryptocurrencies, initially hailed for their stellar performance, are now more often in the spotlight due to lost fortunes, exchange bankruptcies, and business fraud. As the crypto market continues to evolve, examining its historical trading cycles might offer some insight into what the future holds.

A significant part of the crypto narrative revolves around Bitcoin, which makes up about half of the total digital assets by market capitalization. One distinguishing feature of Bitcoin is its "halving" process, aimed at sustaining its value by reducing the supply of new bitcoins. Specifically, every four years, the creation rate of new bitcoins is halved, and this will continue until the total number of bitcoins reaches 21 million, according to Morgan Stanley, by whose published article titled Will Crypto Spring Ever Come? this piece was curated from. This artificial scarcity can, in turn, potentially trigger a bull run in Bitcoin's price. Since its inception in 2011, there have been three such bull runs, each enduring 12 to 18 months post-halving.

The four-year cycle of cryptocurrency prices has been observed to have a pattern similar to the seasonal cycle. The cycle begins with a 'Summer' phase post-halving, where historically, Bitcoin has seen substantial gains, followed by 'Fall,' where prices soar past old highs, attracting increased attention from media and new investors. However, as profits are locked in, a 'Winter' phase ensues, characterized by a bear market decline. This decline lasts until the 'Spring' phase, where prices recover from their lows, although investor interest remains relatively subdued.

As investors seek to optimize their 'crypto growing season,' the quest to identify the onset of 'Crypto Spring' becomes critical. Various factors, including time elapsed since the last peak, the extent of Bitcoin's drawdown, miner capitulation, and the Bitcoin price-to-thermocap multiple can provide cues to whether the market is transitioning from 'Crypto Winter' to 'Crypto Spring'. Other indicators such as exchange issues and price action also offer valuable insights.

Predictions about the exact timing of the next halving, expected around April 2024, are varied. Current data suggests that 'Crypto Winter' might be behind us, with 'Crypto Spring' looming. However, with only three recorded 'Crypto Springs,' there's much to explore and learn.

Cryptocurrency investments come with their share of risks, and while historical data can provide insights, it doesn't guarantee future performance. Various unforeseen factors like software glitches, economic downturns, or coordinated governmental actions could disrupt the anticipated cycle.

Understanding the cyclical tendencies of the crypto market is essential for investors. While its challenging to pinpoint the perfect time for buying or selling cryptocurrency, being informed about market trends and asking the right questions can help investors make well-thought-out decisions in the evolving crypto landscape.

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Anticipating Cryptocurrency's Next Season: An Analysis of Past ... - Hubbis

Since Oct. 3, when lawmakers removed then-Speaker of the House of Representatives Kevin McCarthy, no legislation has made significant progress through the United States Congress.

In an Oct. 23 post, The Blockchain Associations director of government relations, Ron Hammond, provided an update on the tangential elements on crypto-related issues.

As part of the thread, Hammond shares that the race for the Speaker position has attracted numerous candidates who are notably pro-crypto.

1) This week in Congress and crypto: Another week of House Speaker drama and intense focus on Israel/Hamas. For crypto there is a lot of tangental elements on both issues. Many of the speaker candidates have a strong record on crypto so let's quickly meet them and fights to come.

Hammond calls out Tom Emmer as being a leader of the pack, showing that in recent weeks, he made an ascent to the speakers position. History shows that Emmer is a pioneer in crypto legislation, with a track record dating back to 2017.

Previously, Emmer spearheaded a cryptocurrency town hall, introduced the bipartisan Securities Clarity Act, designed to offer a clear regulatory framework for the world of digital assets, and as a result holds the prestigious position of co-chair of the Congressional Blockchain Caucus.

Hammond goes on to share there are two hearings in the U.S. House Committee on Financial Services Republicans on Wednesday about the current situations and one on Thursday in the Senate Banking and Housing Democrats. Both hearings are said to be largely about fact-finding, but for crypto, expect some to say the lack of stablecoin regulation led to the rise of offshore stablecoins.

This comes after anAug. 29 announcementstating that the Republican Representatives were alleging that the Federal Reserve is impeding Congresss endeavors to establish regulations for stablecoins, raising concerns about the potential discouragement of banks from venturing into the digital asset sector.

In a letter addressed to Federal Reserve Chair Jerome Powell, three Republican lawmakersRepresentatives French Hill, Bill Huizenga, and Patrick T. McHenryexpressed their grievances, asserting that the central bank is obstructing Congresss attempts to regulate stablecoins.

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Blockchain Association director of government relations recaps ... - crypto.news

Amidst the swiftly transforming economic terrain of our times, characterized by profound technological strides that are molding entire sectors, one standout occurrence demanding considerable scrutiny and causing considerable perturbation is the advent of cryptocurrency. Beyond merely intriguing tech aficionados and investors, these virtual monetary units have induced substantial perturbations across diverse industries, exerting a sweeping impact extending from financial realms to the intricacies of supply chain administration. The pervasive influence of Bitcoin and cryptocurrencies is explored comprehensively within this article, which meticulously probes the manners in which these digital resources are affecting widespread industrial metamorphosis, all while navigating the nuanced interplay of potential advantages and obstacles. Do you desire a platform for automatic AI-based crypto trading? You're covered by the altrix edge.

The decentralized structure inherent to cryptocurrencies holds the transformative capability to fundamentally reshape the accessibility of financial services for individuals. Particularly in areas where conventional banking systems are constrained, cryptocurrencies emerge as a viable conduit for achieving financial inclusivity. Through the integration of digital wallets and blockchain advancements, users are empowered to execute secure fund transmissions, receipts, and storage, all devoid of the necessity for conventional banking infrastructure. This shift not only addresses existing gaps in financial access but also fosters a new paradigm for facilitating economic participation.

Traditional cross-border transactions are often plagued by delays and high fees. Cryptocurrencies offer a solution by allowing near-instantaneous, low-cost transfers across borders. This innovation could transform international trade and remittances, reducing the time and costs associated with sending money globally.

The surge in the adoption of cryptocurrency as a payment alternative by e-commerce platforms is a noteworthy trend. As a result of their comparatively reduced transaction costs in contrast to credit cards, cryptocurrencies are emerging as an economically efficient choice for both merchants and consumers. Beyond the cost factor, the inherent security and transparency offered by blockchain technology contribute to robust safeguards against fraudulent activities, consequently elevating the integrity of the entire online shopping milieu. This shift not only reflects the evolution of payment methods but also underscores the commitment of e-commerce entities to bolstering the security and convenience of digital transactions.

However, it's important to acknowledge the challenges of cryptocurrency's inherent volatility. The unpredictable price fluctuations that characterize the crypto market can deter merchants and consumers alike. Achieving stability is essential for widespread adoption in the e-commerce sector.

The impactful influence of blockchain technology, the foundational breakthrough supporting cryptocurrencies, extends significantly to the domain of supply chain management. This technology's intrinsic attributes, including its transparent and immutable ledger system, play a pivotal role in elevating the levels of traceability and responsibility across the entire supply chain spectrum. By spanning diverse sectors such as food safety and luxury goods verification, blockchain is effectively optimizing intricate procedures and, notably, instilling heightened confidence among consumers through the reinforcement of trustworthiness and accountability.

Smart contracts, self-executing agreements with predefined rules, have the potential to automate a wide range of processes. In industries like real estate, insurance, and even entertainment, smart contracts could eliminate intermediaries, reduce disputes, and accelerate transactions.

Navigating Regulatory Uncertainty

As cryptocurrencies continue to disrupt industries, governments around the world are grappling with how to regulate this new financial landscape. Striking a balance between innovation and investor protection remains a challenge. Clear and consistent regulations are crucial to foster healthy growth within the industry.

The future trajectory of Bitcoin and cryptocurrency is marked by a complex and captivating array of possibilities. With ongoing technological progress and the continuous unveiling of novel applications, these digital assets stand poised to potentially overhaul conventional business frameworks and exert transformative effects on the worldwide financial landscape. Yet, the realization of these prospects hinges critically on the adept resolution of pivotal challengeschiefly encompassing scalability issues, environmental implications, and the intricate web of regulatory complexities. Skillfully navigating these considerations will undeniably shape the enduring implications of cryptocurrencies and their potential to reshape established paradigms.

In conclusion, the influence of Bitcoin and cryptocurrency on industries is undeniable. From financial services to supply chain management, these digital innovations are prompting organizations to rethink their strategies and adapt to a rapidly evolving landscape. While challenges persist, the potential benefits of increased financial inclusion, streamlined processes, and enhanced transparency are driving industries to explore the possibilities offered by blockchain and digital currencies. As we continue to witness industries in flux, it's evident that embracing these changes is essential for businesses to stay competitive and relevant in the digital age.

(Devdiscourse's journalists were not involved in the production of this article. The facts and opinions appearing in the article do not reflect the views of Devdiscourse and Devdiscourse does not claim any responsibility for the same.)

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Industries in Flux: Tracing the Influence of Bitcoin and Cryptocurrency - Devdiscourse