Yesterday, investors digested positive corporate earning results and considered policymakers’ next moves to support the still virus-stricken economy. The Dow reached records while the S&P and Nasdaq closed flat. The dollar is still losing value against its peers. Gold is still—timidly—rising.
While the earnings coming out are positive, the Nasdaq closed just 0.15% higher, while both the S&P and the Dow closed down 0.10%. Moving a bit more drastically, the dollar keeps losing against its peers, helping gold and crypto markets rise.
Yesterday, the total value of the cryptocurrency market surpassed that of Google as it rose to a record $1.4T. Since the pandemic hit the markets in early 2020, Bitcoin's trading behavior has been compared to that of tech stocks. Well, now only Apple, Microsoft, and Amazon have a higher value than the crypto market. Bitcoin still has some way to go to stake its claim: We are still waiting for the magic $1T market cap level, which represents a Bitcoin price circa $54,000, but it feels like it's only a matter of time.
Let’s not talk about traditional markets today. It’s not that there isn’t anything to say—sure, equities are up (at new record highs, actually)—but for anybody looking at the crypto markets, there’s something bigger happening.
With progress on the US stimulus front, hopes of a continuing recovery with vaccines coming out, and last week’s positive earnings from large companies, markets felt and continue to feel risk-on. This week, further earnings are due to come out, namely: Cisco, Twitter, Uber, MGM, GM, Coca-Cola, and Disney.
Welcome to the Weekender! Every Sunday, we review the top news stories from the digital asset world, as chosen by our readers. This week, we kick-off with the story that announced SBI Holdings and SMFG partners are to build a blockchain-based rival for Tokyo Stock Exchange.
Futures are flat this morning in Asia, as most investors wait for the US job report due later today. Yesterday’s session, though, was yet another great day for most indices; both the S&P and the Nasdaq reached new highs. The dollar also rose, still at low levels but continuing a rebound started earlier this year. Interestingly, gold did not benefit from the risk-on move and fell 2%.
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