With the price of Bitcoin stuck in the mid-$90,000s and the market bracing for a flood of economic updates, Wall Street is already celebrating.
The S&P 500 and Dow Jones have innovated by ignoring the usual anxiety traps of trade conflicts and faltering economies. Not to be outdone, the Nasdaq 100 rallied on technology and consumer gains, while utilities – the market’s dark horse – silently beat forecasts and left analysts blinking.
Key Economic Events to Watch as Bitcoin Prices Crash
The US economic calendar is busy this week, and it’s all about the numbers that could distort market sentiment. U.S. consumption data kicked off Tuesday with updates on consumer confidence, new home sales and the Richmond Manufacturing Index – a quick check on spending habits and economic dynamics .
Midweek, the focus now shifts overseas with Australia’s inflation numbers and the RBNZ’s policy decision.
Back in the United States, a torrent of reports will drop – GDP projections, durable goods data and the coveted PCE price index – all capped off by the minutes of the FOMC meeting.
The recent FOMC indicated that the Federal Reserve may pause interest rate cuts if inflation does not slow.
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Records amid mixed global signals
Even though U.S. stocks are up, the rest of the world is suffering. This week, New Zealand’s central bank is in the spotlight with a 50 basis point rate cut, bringing its policy rate down to 4.25%.
Inflation there may be running out of steam, but the unemployment rate which reached 4.8% signals a slowdown in the economy. Across the map, Japan’s inflation story unfolds Friday with a forecast 2% rise in Tokyo’s core CPI, setting the tone for further changes nationwide.
India is expected to overtake Japan to become the world’s 4th largest economy next year. pic.twitter.com/VzLdPThLAo
– Globe Eye News (@GlobeEyeNews) November 18, 2024
In the Eurozone, inflation data shows a 2.8% forecast for key rates, keeping traders dependent on signals from the ECB.
BTC ETFs see massive outflows
Baby boomers will always be boomers, and they are cashing out their 1.2X on Bitcoin ETFs.
Although Bitcoin ETFs have become the best performers History ETFs hit the Bitcoin ETF market like a punch on Monday, with $438 million bleeding out. That ended a five-day streak that brought in $3.4 billion. Bitcoin’s brief dalliance with $100,000 collapsed when its price plummeted to $94,515, a loss of 3.55% in just 24 hours.
It’s over. The summit has been reached. Bitwise’s BITB suffered the consequences, losing $280 million, followed by Grayscale’s GBTC losing $158.2 million. Fidelity’s FBTC lost $134.7 million and Ark’s ARKB lost another $110.9 million. Still, BlackRock’s IBIT held strong, raking in $267.8 million, keeping some optimism afloat.
99Bitcoins analysts believe that these ETF investors are rebalancing as we saw a similar outflow around November 14-15 after a new ATH.
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Finally, could Michael Saylor cause the price of Bitcoin to fall?
One last thing that’s making its way is that Michael Saylor looks like this season’s main character, and you know what happens to main characters in crypto.
The founder of MicroStrategy drastically increases his Bitcoin average. Some believe that if the price of BTC collapses, it will be the next FTX.
Saylor bets the farm on Bitcoin, and history doesn’t repeat itself, but it rhymes sometimes.
Here’s how the story goes: In 2000, MicroStrategy was a rising star in the data analytics field. The stock went parabolic and CEO Michael Saylor became a billionaire overnight. So…reality check. They announced income restatements. Investors saw the scam and the stock collapsed by more than 99%.
It is one of the biggest bankruptcies of the Internet era.
Fast forward 20 years. MicroStrategy is still there, but discreet. Saylor then has a new obsession: Bitcoin. He starts stacking BTC like his life depends on it. Corporate cash flow? Converts it to Bitcoin. Take out loans? Buy Bitcoin. Is he selling more inventory? You guessed it: Bitcoin.
BTC hits $69,000 and is hailed as a genius.
We’re going to take a break here because Saylor is an important figure in the Bitcoin community. He supported it while others called it a scam.
But MacroStrategy’s stock price isn’t keeping up with the business; it follows Bitcoin. Their balance sheet is now essentially a leveraged BTC ETF. If BTC falls below its average purchase price, margin calls start to hit.
Fortunately, by far, this wacky data analytics company is beating the competition with its BTC investment strategy. Institutions like MicroStrategy buy Bitcoin over the counter. The fact is that OTC reserves are running out of Bitcoin and miners are not producing enough.
If things continue like this, Bitcoin’s passing $100,000 will be epic.
We will continue to monitor whether global macroeconomic events will support Bitcoin or keep it amid price uncertainty.
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