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Stocks Surge While Bitcoin ETF Disappoints

Miguel A. Rodriguez
Miguel A. Rodriguez
23 January 2024

Learn the latest news around the Bitcoin ETF and major companies' earnings. Get insights from our daily market overview on surging stocks, oil trends, and more. 

The Bitcoin ETF Continues to Spiral Down

After the high expectations created by the SEC's approval of a Bitcoin ETF, the cryptocurrency is not performing well, at least for now.

The leading digital asset fell more than 3%, just above its lowest level of the year reached on Friday. Other cryptocurrencies were down too, with Ether (ETH) dropping 4%, and smaller tokens like Solana (SOL) and Dogecoin (DOGE) decreasing by 3.9% and 2.1%,

Bitcoin and other cryptocurrencies hit their yearly lows even as stock markets rallied, breaking the usual link between these two asset classes. Investors are now wondering how this disconnect will be resolved: will cryptocurrencies start to rise again, or will stock markets drop? 

         

 

Interfaz de usuario gráfica, Gráfico Descripción generada automáticamente

Bitcoin Spot ETF daily chart, January 22, 2024. Source: CAPEX.com WebTrader.      

 

Is the Stock Market on a Bull-Run?

Currently, stock markets are strong and even improving without showing any indications of weakening. Last week, North American indices hit record highs, and on Monday, stocks kept climbing, thanks to positive economic data and company earnings that boosted Wall Street's confidence.

Despite a shaky start to the year, stocks are recovering, with investors hopeful that the Federal Reserve will cut interest rates and optimistic about the ongoing artificial intelligence boom. Also, this week is busy with earnings reports from big companies like Netflix Inc., Tesla Inc., and Intel Corp.

This new upward trend in the market is happening even though the chances of a Fed rate cut in March have decreased to 50% from nearly 80% a week ago, after reports of improved retail sales and consumer confidence.

Upcoming Earnings Watch: 

 

US Personal Consumption Expenditure (PCE) Release on Friday

Investors now await a key reading on US inflation this week that will offer new clues about the future path of interest rates. The December Personal Consumption Expenditure data comes after the price index rose 2.6% in the 12 months to November and monthly prices fell for the first time in more than three and a half years.

Oil Experienced Slight Gains Driven by Geopolitical News

In the commodity market, Oil prices rose on Monday, driven by the tense geopolitical situation in the Middle East region. Violence in the Middle East continued over the weekend, with Yemen's Houthi militants harassing shipping in the Red Sea. WTI Crude Oil rose more than 2% on Monday, above $74 a barrel.

 

Key Takeaways

  • The well-awaited Bitcoin ETF is not living up to expectations.
  • The Stock Market continues its strong performance, boosting associated Indices due to strong earnings and other data.
  • Big tech quarterly earnings are expected this week.
  • US PCE data is released this Friday. Investors await this as it could be a key indicator of future rate changes.
  • Crude Oil rose more than 2% pushing above $74 a barrel.

 

Sources: Bloomberg, Reuters 

 

This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.