The Roaring Kitty craze appears to be dwindling at a swift pace, as evidenced by Gamestop’s stock, GME, which has dipped between 3-5% against the U.S. dollar during Tuesday’s mid-day trading sessions. Similarly, the meme stock AMC Entertainment Holdings, or AMC, has also experienced a decrease of approximately 1.87%. According to the cryptocurrency market cap […]
Bitcoin News
Crypto Market Downturn Hits Coinbase, Microstrategy, and Mining Stocks Hard
During the widespread downturn in the cryptocurrency markets, publicly listed companies within the sector such as Coinbase, Microstrategy, and bitcoin mining enterprises have experienced notable declines in their stock values. Shares of Coinbase have fallen by over 21% since last month, and in the same period, Marathon Digital Holdings’ shares have dropped more than 28% […]
Bitcoin News
Bitcoin Mining Stocks Rally Ahead of Halving: Double-Digit Gains Mark Midweek Surge
Publicly traded bitcoin mining companies experienced a revival this week, as numerous stocks saw double-digit increases on Wednesday. Shares of Cleanspark soared by 22.8%, Marathon’s shares climbed by 16.1%, and Riot’s shares increased by 11.81% throughout the trading day. Bitcoin Mining Equities See Recovery With Stellar Wednesday Gains With less than a month remaining until […]
Bitcoin News
CPI Report Triggers Market Tumble: Stocks and Crypto Decline as Inflation Concerns Mount
On Tuesday, the U.S. Bureau of Labor Statistics released its Consumer Price Index (CPI) report, indicating a 0.3% rise in January. Following the release, all three major stock indices experienced a decline, Treasury yields climbed, and crypto assets took a hit, moving downward from their recent peaks. Stocks Dip, Crypto Slumps as January CPI Data […]
Bitcoin News
Bitcoin Mining Stocks Surge — Double-Digit Gains Highlight Rapid Growth in Digital Currency Sector
As bitcoin and the broader crypto market have surged, shares of publicly traded mining companies have seen substantial growth. Data shows that, in the last five days, stocks of many of these firms have experienced double-digit increases in value against the U.S. dollar. Publicly Traded Mining Companies See Major Uptick Publicly-listed firms linked to the […]
Bitcoin News
Michael Howell Predicts Continued Surge in Global Liquidity Benefiting Stocks, Gold, and Crypto
Crossborder Capital’s Michael Howell, a veteran in global finance, offered a liquidity-based view on the current state of the economy. He challenged the prevailing narrative of monetary tightening with evidence of a rise in liquidity, which in turn should uplift stocks, gold, and cryptocurrencies.
Michael Howell of Crossborder Capital Focused on Rising Global Liquidity and Its Market Impact
Michael Howell is the founder and CEO of Crossborder Capital, a London-based FCA registered, independent research and investment company with over billion assets under management. Previously he was Head of Research for Baring Securities and Research Director of Solomon Brothers. With a deep understanding of international finance and economics, Howell has become a prominent figure in analyzing global liquidity trends and their impact on markets. Recently, he appeared on Forward Guidance to shed light on the current macroeconomic landscape, emphasizing the continued rise in global liquidity and its positive effects on liquidity-sensitive assets such as stocks, gold, and cryptocurrencies. The whole episode is well worth a listen.
At the heart of Howell’s analysis is the observation that, contrary to popular belief, the Federal Reserve has been subtly injecting liquidity into markets. This covert approach stands in stark contrast to the narrative of monetary tightening that has dominated headlines. Despite a reduction in the Fed’s balance sheet last year, Howell noted that Fed liquidity actually increased by 12 to 15%. This trend is not just a fleeting phase but part of a longer-term pattern of monetary inflation, as central banks globally engage in what Howell described as shadow quantitative easing and shadow yield curve control.
He observed that the draining of the Reverse Repo (RRP) facility and the Bank Term Funding Program (BTFP) contributed significantly to the rise in Fed liquidity last year. He anticipates that central bank liquidity will continue to unlock, especially once the RRP is fully drained, and suggested that the BTFP could even be renewed.
Adding to the complexity of the situation is the U.S. Treasury’s strategic decision to shorten the maturity of its debt issuance. This move, Howell explained, mechanically reduced the private sector’s liquidity needs to absorb government paper, particularly aiding the banking sector in managing its systemic overexposure to duration.
All of this may point to a transition from a rebound phase to a calm phase. Howell noted that the financial sector and high-beta securities such as crypto tend to do their best in such calm phases.
Regarding cryptocurrency, Howell mentioned that there could be particular positive influences. He stated that cryptocurrency might be the younger generation’s preferred hedge against monetary inflation, a sentiment that aligns with the increasing interest in digital assets among younger investors. If true, crypto could move more than gold as the preferred vehicle for younger investors.
What do you think about Howell’s basic argument that a rise in global liquidity will generally benefit liquidity sensitive assets like stocks, gold, and crypto? Share your thoughts and opinions about this subject in the comments section below.
US Stocks, Bitcoin, and Gold Drop as Fed Plays Coy on Rates — Investors in Limbo
The leading trio of U.S. stock indices — Dow Jones Industrial Average, Nasdaq Composite, and the S&P 500 — experienced a downturn on Wednesday afternoon. This decline coincided with a rise in 10-year Treasury yields, which jumped 0.98% to 4.102%. Concurrently, gold’s value decreased by a percentage point and bitcoin also witnessed a decline, dropping 1.02% in relation to the U.S. dollar.
Treasury Yields Surge, Dow, Nasdaq, and S&P 500 Tumble
Market sentiment remains wary regarding the U.S. Federal Reserve’s strategies for 2024, with anticipation growing around a potential rate cut by March. This outlook comes in the wake of remarks made by Federal Reserve Governor Christopher Waller during an address at the Brookings Institution in Washington. Waller acknowledged the possibility of a rate reduction occurring within the year, yet emphasized that the Fed is not in a hurry to initiate this change.
“I see no reason to move as quickly or cut as rapidly as in the past,” Waller said.
In a predictable turn of events, 10-year Treasury yields saw a 0.98% increase on Wednesday, following a 4.4% rise over the past month. As of Jan. 17, 2024, the long-term note has reached a level of 4.106%. Simultaneously, the 2-year Treasury yields experienced a significant jump of 3.08%, although they remain 2.16% lower compared to the previous month’s figures. Currently, the market is leaning towards a 97.4% likelihood that the U.S. central bank will opt for a rate hike in its upcoming meeting scheduled for Jan. 31, 2024.
The CME Fedwatch tool indicates a 52% probability that the central bank will reduce the federal funds rate by March 2024. Presently, an ounce of fine gold is valued at ,006 per unit, experiencing a 1.09% decline in the last day. Over the past month, gold’s value has dropped by 0.66%, but it has gained 1.86% in the last six months. On Jan. 17, bitcoin (BTC) witnessed a 1.02% fall, and over the past week, the leading crypto has declined by more than 7%. Nevertheless, six-month statistics reveal a 43% increase in BTC’s value, surpassing gold’s market performance during the same period.
Although bitcoin displayed a subdued performance on Wednesday, the global market capitalization of the crypto economy climbed by 0.49%, reaching .69 trillion. The Dow Jones Industrial Average experienced a modest decline of 0.25% on the same day, while the Nasdaq Composite recorded a decrease of 0.59% at market close. Additionally, the S&P 500 lost 0.56%, and the Russell 2000 (RUT) ended the day with a 0.73% drop. As usual, financial markets are experiencing a period of cautious sentiment, particularly in relation to the Fed’s monetary policy direction for 2024.
What do you think about the current state of markets? Share your thoughts and opinions about this subject in the comments section below.
Congressional Investments in Defense Stocks Raise Ethical Eyebrows Amidst Ongoing Wars
In the midst of ongoing strife in Ukraine and Israel, stocks of publicly listed defense corporations have seen a dramatic surge. Simultaneously, U.S. government officials have backed substantial war expenditures, and reports indicate a multitude of politicians reaping financial benefits from investments in defense companies such as Palantir, L3Harris, Lockheed Martin, and Northrop Grumman.
Legislators’ Stakes in Defense Giants Under Critical Lens Amid Global Conflicts
Since February 24, 2022, the Biden administration has stood by Ukraine amidst its clash with Russia, with approximately billion allocated to aid Ukraine’s military endeavors. Recent tensions between Hamas and Israel have further escalated the situation, with numerous U.S. politicians advocating for military action. Consequently, the stock prices of publicly listed defense corporations have soared, surpassing most Wall Street equities. For instance, Lockheed Martin’s (NYSE: LMT) stock has seen a 3.8% increase over the last 30 days.
Northrop Grumman (NYSE: NOC) has experienced an over 13% rise, Palantir (NYSE: PLTR) has seen a 10% spike, and L3Harris (NYSE: LHX) has grown 4.4% against the U.S. dollar in the past month. On the social media platform X (previously known as Twitter), an account named “Unusual Whales” has been shedding light on the U.S. officials investing in defense corporations amidst the dual conflicts.
“Just in, another U.S. Congressman has ONCE AGAIN bought war stocks before the Israel and Palestine conflict,” Whales posted. “Representative Josh Gottheimer purchased up to ,000 of Northrop Grumman Corp, NOC, on Sept. 26, 2023. He sits on the National Security Agency and Intelligence Committees,” the account added. The X account has further revealed a long list of politicians, spanning both Democratic and Republican parties, who have invested millions in defense corporation stocks.
The NOC purchase by Gottheimer can be tracked on quiverquant.com, alongside other U.S. policymakers who hold significant investments in Wall Street, particularly in defense corporation shares. Other NOC investors include Democratic Congressman Daniel Goldman and Democratic Congresswoman Kathie Manning. Lockheed Martin shares are held by Republican Congressman Kevin Hern, who recently bought shares of RTX (Raytheon) on September 7, 2023. Senate Republican Markwayne Mullin also invested between K to K in RTX the following week.
Even prior to the Israel-Hamas confrontation, the Ukraine-Russia conflict saw a significant number of U.S. politicians profiting from investments in defense corporations. The issue with policymakers investing in defense stocks lies in the fact that defense corporations often allocate substantial resources for lobbying. These companies engage in lobbying activities to sway Congress and other U.S. government sectors. Their lobbying goals range from securing defense contracts, shaping defense policy, to ensuring the persistence of high military spending.
Many believe that there’s a glaring conflict of interest in U.S. politicians investing in defense stocks while backing several wars. Anti-war activists insist it poses a moral quandary. To activists, it is unsettling that the very individuals entrusted with the nation’s welfare are profiting from the escalation of war and violence. This murky intertwining of war politics and personal gain threatens the ethical underpinning of any type of governance, casting a dark shadow on the integrity of political decision-making.
What do you think about the U.S. politicians profiting from war stocks? Share your thoughts and opinions about this subject in the comments section below.
Bitcoin Dominates 2023: Surges Past Stocks And Bonds With 63% YTD Growth
Bitcoin (BTC), the world’s leading cryptocurrency, continues to face challenges in reclaiming the ,000 level amid rising US treasury yields, a stronger dollar, and geopolitical uncertainties.
However, according to a report by the digital asset research firm Reflexivity, despite these obstacles, Bitcoin remains the standout performer among asset classes in 2023, with an impressive year-to-date (YTD) return of 63.3%.
This exceptional performance has surpassed returns from US large-cap growth stocks (28%), US large-cap stocks (13%), bonds, commodities, and REITs, according to a report from New York-based Bitcoin investment firm NYDIG.
ETH/BTC Ratio Reflects Risk Appetite And BTC’s Strength
According to the firm’s latest analysis of the current state of the Bitcoin market, there is a notable importance in monitoring Bitcoin’s market cap dominance, which measures Bitcoin’s market capitalization as a percentage of the total crypto market capitalization.
Market participants often view this metric as a risk gauge for the broader crypto market. Just as traditional markets experience cycles, with early stages marked by capital concentration in a select few high-quality assets that gradually disperse into riskier assets, the crypto market follows a similar pattern.
The cycle commences with capital concentrated in Bitcoin, then dispersion into Ethereum (ETH) and eventually other altcoins. The cycle concludes with capital flooding into high-risk assets, as witnessed in the memecoin frenzy of 2021.
The report’s chart illustrates the rising dominance of Bitcoin, indicating a healthy concentration of capital into the leading asset. Bitcoin’s sustained dominance suggests that the crypto market is stable, with significant capital still flowing into Bitcoin.
Alongside monitoring Bitcoin dominance, another key indicator of risk-taking behavior in the crypto market is the ETH/BTC ratio, which compares Bitcoin’s performance to Ethereum, the second-largest cryptocurrency by market capitalization.
The chart demonstrates a downward trend in the ETH/BTC ratio since the Merge in September 2022, which, according to the report, both Bitcoin dominance and the ETH/BTC ratio will be crucial to watch for any potential shift from a Bitcoin-dominated market regime into higher-risk assets.
Bitcoin Eyes Bullish Momentum
After a two-month consolidation period between the ,000 and ,000 range, BTC finally experienced a surge of bullish momentum, breaking the pattern and climbing to the upside.
However, the cryptocurrency’s upward trajectory was halted as it encountered a formidable resistance wall in the mid-term, reaching ,600 on October 2nd and facing a significant hurdle at ,700.
This resistance level poses one of the final challenges preventing BTC from revisiting the ,000 mark, last seen in August.
Despite the setback, Bitcoin currently trades above its crucial 50-day and 200-day moving averages (MAs), indicating the potential for another attempt to breach previously lost levels.
Market analysts and enthusiasts are closely watching the ,700 mark, as a successful break could signal the formation of a perfect ‘W’ pattern, with a target set at ,100.
On this matter, renowned crypto YouTuber and founder of Crypto Sea, known as ‘Crypto Rover,’ highlights the significance of the ,700 level as a potential catalyst for Bitcoin’s next move.
According to the analyst’s latest post on X (formerly Twitter), a successful breakthrough could reignite bullish sentiment and pave the way for a push toward the ,100 target.
BTC is trading at ,300, experiencing a modest decline of 0.6% over the past 24 hours. However, the cryptocurrency has recorded notable gains of 4.4% and 6% over fourteen and thirty days, respectively.
Featured image from Shutterstock, chart from TradingView.com
Robert Kiyosaki Advises Buying Bitcoin Today — Foresees a Rush to Buy BTC as Stocks, Bonds, and Real Estate Crash
Rich Dad Poor Dad author Robert Kiyosaki has advised investors to buy bitcoin today before stock, bond, and real estate markets crash and people rush to buy BTC alongside gold and silver. The famous author has predicted that bitcoin’s price will reach 0,000 by 2025, with gold soaring to ,000, and silver reaching 0. However, he anticipates BTC reaching million in the event of a global economic collapse.
Robert Kiyosaki Recommends Buying Bitcoin Today
The famous author of Rich Dad Poor Dad, Robert Kiyosaki, has urged all investors to buy gold, silver, and bitcoin today before the stock, bond, and real estate markets crash and people rush to buy those three assets. Rich Dad Poor Dad is a 1997 book co-authored by Kiyosaki and Sharon Lechter. It has been on the New York Times Best Seller List for over six years. More than 32 million copies of the book have been sold in over 51 languages across more than 109 countries.
Kiyosaki shared on social media platform X on Tuesday that he is constantly asked about what the price of gold, silver, or bitcoin will be in 2025. “My reply is that is a silly question,” he said, adding that the “more important question is how many gold, silver, bitcoins do you have today?” He explained:
Gold, silver, and bitcoin are bargains today … but not tomorrow. America is broke. Buy gold, silver, and bitcoin today before stocks, bonds, and real estate crash & people rush for gold, silver, and bitcoin.
In February, Kiyosaki predicted that the price of bitcoin will hit 0,000 by 2025 while gold will soar to ,000 and silver will reach 0. In August, he said that bitcoin will rise to million, while gold will jump to ,000 and silver to ,000 if the world economy crashes.
Kiyosaki also previously warned that a “giant crash” is coming and the possibility of a depression is not to be dismissed. Earlier this month, he predicted that Airbnb will lead the real estate market crash.
He expects the U.S. economy to head for a crash landing, further predicting that the U.S. dollar will die. The renowned author cautioned that the Federal Reserve will be forced to print billions in “fake money.” He sees fiat money, including the U.S. dollar, as fake money while gold and silver are “God’s money” and bitcoin is “people’s money.” Last week, Kiyosaki said that crypto is the future and fiat money is “toast.”
What do you think about Rich Dad Poor Dad author Robert Kiyosaki’s advice on buying bitcoin? Let us know in the comments section below.