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A neon sign indicates that Bitcoin is accepted inside the venue of the Paralerni Polis Project, an organization that combines art, social sciences and modern technology, in Prague, Czech Republic, on Friday, January 5, 2024.
Milan Haros | Bloomberg | Getty Images
This report is from today’s CNBC Daily Open, our new international markets newsletter. The CNBC Daily Open provides investors with everything they need to know, no matter where they are. Like what you see?You can subscribe here.
Bitcoin falls due to incorrect ETF approval post
Bitcoin fell on Tuesday after a Securities and Exchange Commission social media account was compromised and sent false social media posts claiming the regulator had approved a long-awaited Bitcoin exchange-traded fund. Immediately after the initial post, the world’s largest cryptocurrency soared to $47,901, its highest since March 2022, but has since traded 3% lower.
market recession
Wall Street’s benchmark S&P 500 index fell slightly on Tuesday, closing 0.15% lower, while the Dow Jones Industrial Average fell 0.42%. However, the Nasdaq Composite Index rebounded from a 0.9% drop in early trading to rise 0.09% by the close. Tech stock prices continued to rise, halting a steep decline. Europe’s Stoxx 600 index also ended 0.17% lower as most major sectors fell along with other regional stock exchanges.
The worst decade of growth
The World Bank predicts that global economic growth in 2024 will likely be 2.4%. This is lower than the 2.6% recorded in 2023 and would be the third consecutive year of slower growth, according to the agency’s World Economic Outlook report. The World Bank says the slowdown in global trade and tightening financial conditions will hit developing countries hardest.
HPE to acquire Juniper Networks
Hewlett Packard Enterprise will acquire Juniper Networks for approximately $14 billion in an all-cash transaction, the company confirmed. This equates to him approximately $40 per share. Following this news, Juniper stock rose 22% to close at $37.05. The company said the acquisition strengthens HPE’s existing network business, the company’s best-performing division, and accelerates growth.
[PRO] What Wall Street is expecting this earnings season
Major banks such as Citigroup, Bank of America, JPMorgan Chase & Co. and Wells Fargo begin their earnings season later this week. Investors will be looking for hints about what these companies have in store for the new year, but analysts are predicting a “negative catalyst.”
Bitcoin is perhaps the most popular cryptocurrency in the world and has seen a dramatic rise over the last year. Much of that was fueled by the hype surrounding Bitcoin exchange-traded funds (ETFs), which have seen the cryptocurrency rise about 60% in the past three months.
A false social media post about the SEC’s approval of such an ETF was not what the crypto enthusiasts most expected.
Market participants had expected an update from regulators as early as Wednesday, the deadline for the SEC to approve or deny applications.
However, Bitcoin was quickly sold off after the SEC announced that the
“This decline is indicative of market turmoil,” said Michael Linko, research analyst at Delphi Digital. “While this type of mass boomerang event probably scared some people and resulted in risk aversion, the initial market reaction is encouraging.”
But while approval by the SEC remains widely expected, some investors believe that given Bitcoin’s impressive rally, it means the first-day effect of approval could end up being just a selling event. thinking.
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