Zforex
zForex.com Representative
- Messages
- 28
US Indices
Stocks climbed higher on Tuesday as investors built upon the previous session's historic surge to record highs. The continued strength of Wall Street hinges on whether the U.S. Federal Reserve can successfully achieve a soft landing—cooling the economy enough to reduce inflation without triggering a recession. Currently, traders are estimating about a 40% likelihood of a Fed rate cut in March, a significant drop from nearly 81% just a week earlier, as indicated by FedWatch Tool.
Investors are attentively monitoring a series of economic reports scheduled for release this week. These include the fourth-quarter gross domestic product (GDP) figures on Thursday and the Fed’s preferred inflation measure, the personal consumption expenditures (PCE) price index for December, due on Friday. Both reports will play a crucial role in shaping the Fed's perspective on future monetary policy.
The focus is also on the profit outlook for corporate America, following the commencement of the ongoing earnings season by major U.S. banks. So far, the results have been mixed, with several reports of lower profits.
The Nasdaq, along with other major indices, is experiencing an uptick, with the Nasdaq reaching a new resistance level at the Fibonacci 0.618 retracement, where the rally continues. My projection is for a higher target price, particularly in light of this quarter's earnings. The performance of the 'magnificent seven' and other economic data may further propel the Nasdaq upwards.
Crypto
Bitcoin's value continues to plummet, sinking below the $39K mark amidst ongoing bearish trends. After dipping below the $40K barrier on Monday, the leading cryptocurrency has seen a further 5.3% depreciation against the U.S. dollar within the last 24 hours.
This downward trend has led to speculations in the market, with concerns revolving around Grayscale's GBTC outflows and the impact of spot bitcoin exchange-traded funds (ETFs). Additionally, the approval of bitcoin spot ETFs appears to be a "sell the news" event, with the cryptocurrency's price dropping 20% since the ETFs launched on January 11th, resulting in long-term holders capitalizing on profits.
bitcoin's rapid price growth of over 90% in less than a year may have triggered massive sales, while miners might also be contributing to the downward pressure. Miners could be selling their bitcoins ahead of the April 2024 Halving event, which reduces mining rewards, leading to oversupply and a potential price decline.
JPM says it finds spot Bitcoin ETFs flows-to-date as "underwhelming versus the lofty expectations" established in the run-up to their approval.
Bitcoin is falling toward the median line at the support level of 3800 Which may continue toward 35000.
Stocks climbed higher on Tuesday as investors built upon the previous session's historic surge to record highs. The continued strength of Wall Street hinges on whether the U.S. Federal Reserve can successfully achieve a soft landing—cooling the economy enough to reduce inflation without triggering a recession. Currently, traders are estimating about a 40% likelihood of a Fed rate cut in March, a significant drop from nearly 81% just a week earlier, as indicated by FedWatch Tool.
Investors are attentively monitoring a series of economic reports scheduled for release this week. These include the fourth-quarter gross domestic product (GDP) figures on Thursday and the Fed’s preferred inflation measure, the personal consumption expenditures (PCE) price index for December, due on Friday. Both reports will play a crucial role in shaping the Fed's perspective on future monetary policy.
The focus is also on the profit outlook for corporate America, following the commencement of the ongoing earnings season by major U.S. banks. So far, the results have been mixed, with several reports of lower profits.
The Nasdaq, along with other major indices, is experiencing an uptick, with the Nasdaq reaching a new resistance level at the Fibonacci 0.618 retracement, where the rally continues. My projection is for a higher target price, particularly in light of this quarter's earnings. The performance of the 'magnificent seven' and other economic data may further propel the Nasdaq upwards.
Crypto
Bitcoin's value continues to plummet, sinking below the $39K mark amidst ongoing bearish trends. After dipping below the $40K barrier on Monday, the leading cryptocurrency has seen a further 5.3% depreciation against the U.S. dollar within the last 24 hours.
This downward trend has led to speculations in the market, with concerns revolving around Grayscale's GBTC outflows and the impact of spot bitcoin exchange-traded funds (ETFs). Additionally, the approval of bitcoin spot ETFs appears to be a "sell the news" event, with the cryptocurrency's price dropping 20% since the ETFs launched on January 11th, resulting in long-term holders capitalizing on profits.
bitcoin's rapid price growth of over 90% in less than a year may have triggered massive sales, while miners might also be contributing to the downward pressure. Miners could be selling their bitcoins ahead of the April 2024 Halving event, which reduces mining rewards, leading to oversupply and a potential price decline.
JPM says it finds spot Bitcoin ETFs flows-to-date as "underwhelming versus the lofty expectations" established in the run-up to their approval.
Bitcoin is falling toward the median line at the support level of 3800 Which may continue toward 35000.