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Global Markets Wobble Ahead of Key US Events: Yen and Tech Stocks + Crypto in Focus- Anndy Lian

Global Markets Wobble Ahead of Key US Events: Yen and Tech Stocks + Crypto in Focus- Anndy Lian

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Market Wrap

Global markets took a bit of a hit as investors grew cautious ahead of some key events. With US payroll revisions and Fed Chair Powell’s speech at Jackson Hole coming up on Friday, people are playing it safe. In Japan, stocks dipped because the yen’s recent strength has raised concerns about future earnings. The yen settled around 145 against the dollar after a recent rally, with everyone waiting for BOJ Governor Ueda’s speech on Friday.

Over in Hong Kong, Chinese stocks ended a three-day winning streak, mainly due to a slump in tech shares. Reports that Walmart plans to sell its stake in http://JD.com didn’t help the mood. In the US, the MSCI index dropped by 0.2%, with the Energy sector taking a bigger hit at -2.6%. US Treasuries saw a rally as investors moved to safer assets, with the 10-year yield closing at 3.81% and the 2-year yield at 3.98%. The US Dollar Index fell by 0.4%, while Gold stayed strong above USD 2,500/oz thanks to safe-haven buying. Brent crude slipped by 0.6% to USD 77/bbl due to rising US crude stockpiles and ceasefire talks between Israel and Hamas. Asian markets were mostly down in early trading, and US futures suggest a flat start for US stocks.

Cryptocurrency and Politics

Cryptocurrency is becoming a hot topic in the political arena, especially with the 2024 US election heating up. Former President Trump is all in on crypto, promising to make the US a leader in the space. He even spoke at The Bitcoin Conference in Nashville and suggested the US should build a national Bitcoin stockpile. On the flip side, Kamala Harris’s stance on crypto is still a bit of a mystery. Her team has reached out to companies like Coinbase, Ripple, and Circle to discuss crypto-friendly regulations, but the 2024 Democratic Party platform doesn’t mention cryptocurrency yet.

In the crypto world, Tether has minted another $1 billion USDT on the Tron network. Bitcoin whales are now adding just 1% to their BTC holdings each month. Binance’s return to India comes with an $86 million tax bill. Bitcoin mining costs have jumped by 168% due to increased capacity. Recently, Mt. Gox moved 13,265 BTC worth around $784 million, marking its first major move in three weeks. According to Arkham Intelligence, Mt. Gox still holds 46,164 BTC worth about $2.74 billion at current prices. Galaxy’s head of research, Alex Thorn, thinks only a small portion of the moved funds—$74.5 million—is meant for distribution, with the rest going into new cold storage still owned by the estate.

Market Analysis

Glassnode’s recent analysis suggests that Bitcoin’s dip below $50,000 was likely an overreaction by short-term traders. They believe the drop was driven by new investors with high unrealized losses. Glassnode found only a slight difference between the spent and holding cost basis, indicating that the market may have overreacted when BTC fell below $50,000. This highlights the volatility and sensitivity of the cryptocurrency market to short-term trading behaviors and external factors.

Conclusion

As global markets brace for pivotal US economic updates and Fed Chair Powell’s much-anticipated speech, investor caution is palpable. The yen’s strength and tech stock jitters in Hong Kong add to the mix, painting a picture of a market on edge. Meanwhile, the cryptocurrency landscape is buzzing with political intrigue and significant moves, from Trump’s bold crypto promises to Mt. Gox’s substantial Bitcoin transfers. Amidst this backdrop, safe-haven assets like Gold shine, and US Treasuries rally, reflecting a classic flight to safety. As we navigate these turbulent waters, the interplay between traditional markets and the evolving crypto space continues to captivate and challenge investors worldwide.

 

Source: https://x.com/anndylian/status/1826147041342533952