- US stocks rebound after declining to a significant support level during the European Trading session.
- Bitcoin declines almost 4.5% after the SEC’s social media page was hacked. Late in the US session a fake post was released advising Spot ETFs were approved.
- The best performing stocks within NASDAQ’s most influential stocks were again AMD (+2.11%) and NVIDIA (+16.87%). Stocks in the Semiconductor sector continue to perform well ahead of earnings data.
- Bond yields rise to their highest level in almost 1 month as we approach December’s US Consumer Price Index.
Bitcoin – Fake News Sparks Volatility, Investors Eye Real Final Decision Today!
Bitcoin’s price sharply rose after the fake news on the SEC’s social media, but then quickly declined by 4.5%. The price stabilized after Gary Gensler advised the account was compromised and the price this morning continues to trade with stability. Nonetheless, after the decline the price now trades slightly lower than the previous price range.
According to Bloomberg analysts this highlights the instability and volatility of the asset which generally is not positive. However, the analysts have also advised that, if approved, the SPOT Bitcoin ETF would make the asset more accessible which potentially could increase demand and open the door to larger investors.
The market volume in the last 24 hours for the cryptocurrency market is almost 3% higher, which indicates plenty of selling and buying. However, the overall market capitalization is currently 1.10% lower and Bitcoin’s market share is 0.50% lower. Both these figures are negative and do not give a promising outlook for the day. However, in terms of technical analysis, the price of Bitcoin remains above the price sentiment line and above the “neutral” zone within most oscillators.
Cryptocurrency investors will continue to wait for the official approval from the US SEC (Securities and Exchange Commission). For the rest of the week, the main price influence is likely to come from the US inflation rate and the SEC’s real decision. If inflation reads lower than expectations, investor sentiment and risk appetite is likely to rise which is positive for assets such as Bitcoin. Analysts expect the SEC’s final decision to be over the next 24 hours.
USA100 – Semiconductors continue to support the NASDAQ Ahead of Earnings!
The price movement of the USA100 was as discussed in yesterday’s market analysis blog. The price of the asset was experiencing buy signals from oscillators and trend indicators, but a possible retracement to the 75-bar exponential moving average was possible. The asset did indeed decline to this level throughout the European session but then shot higher in the afternoon. Within the US session the asset rose 1.20% before losing momentum in the last few hours of the day. The asset, however, did form a higher high and continues to show a bullish trend wave pattern.
The best performing of the top 20 most influential stocks within the index were AMD (+2.11%), NVIDIA (+16.87%) and Alphabet (1.52%). The asset experiencing the strongest decline was Tesla declining 2.28% due to fears of poorer quarterly earnings this season.
Yesterday, the Fed’s representative Mrs Bowman said that there would be no new rate hike, however, it is too early to reduce them. She added this is due to the risks of consumer price growth remaining. However, previously the official supported an exclusively “hawkish” course. Therefore the move from a “hawkish” opinion to “neutral” is deemed by most as a positive for stocks. However, as stated throughout the week, this will largely depend on tomorrow’s Consumer Price Index and Core inflation data.
XAUUSD – Sell Futures Contracts Continue to Outnumber Buy Contracts
Yesterday, gold rose to the previously stated sentiment line (75-bar EMA), however, it quickly collapsed to a lower price. The price is again rising but continues to form “lower highs” and trade close to 50.00 on the RSI. Therefore, technical analysis remains neutral in the medium term and is not likely to obtain a clearer outlook until volatility rises after tomorrow’s inflation data.
According to the US Futures Trading Commission, the number of buy contracts being added is far less than new sell contracts. Therefore, most futures traders continue to believe the asset is more likely to decline. Buyers increased the number of contracts by 1.464 thousand, and sellers by 7.882 thousand. However, if central banks around the globe do become more dovish, this could increase the possibility of further demand for Gold, whilst political tension remains, and currencies become less attractive.
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Michalis Efthymiou
Market Analyst
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