The pendulum that is investors’ minds swung back yesterday.
According to the latest CDC data, the U.S. had averaged more than 63,000 new Covid cases a day over the last seven days—the highest level since April this year.
Last night, during Sunday trading, most equity indexes rose, including the Dow, the Nasdaq, and the S&P.
Thanks to yesterday's $4 rally, we made it to 9 consecutive up days in a row. Unfortunately, it appears this run is coming to an end: Barring a quick $1,000 rally, the Bitcoin bulls will have to be happy with the progress that has been made over the last week. The 20% plus rally arrived just as BTC was staring over the edge of a $30,000 cliff.
Yesterday's trading was mixed. Early in the session, even with reports of economic slowdown in the US, traders were still buying, maybe thinking it solidified the accommodative Fed policies.
Yesterday’s narrative was somewhat bittersweet. On the one hand, Fed policies remain hyper accommodating, which is positive. On the other hand, the accommodating stance is based on lingering concerns about the economic recovery in the US (and also globally).
Bitcoin has fallen back below $40,000 today, as the denial from Amazon of the impending acceptance of Bitcoin as a payment method came through. Prices returned to our support level of $36,500 before rallying once more, a sign that this move may be supported by more than just click-bait headlines.
Even with positive earnings (earnings that were pretty much priced in), equity indexes edged down yesterday.