[ad_1]
In this illustration taken on June 16, 2023, a representation of the cryptocurrency Bitcoin is placed on the motherboard of a PC.
Dado Luvić | Reuters
SEC approved
In a highly anticipated and controversial decision finally made on Wednesday, the Securities and Exchange Commission will allow the creation of Bitcoin exchange-traded funds in the United States, giving retail investors access to the world’s oldest and most popular cryptocurrency. Now you can. The first fund is scheduled to begin trading on Thursday. However, the price of Bitcoin fell by about 2%.
Wall Street ends higher
U.S. stocks closed higher on Wednesday as investors awaited the start of earnings season and inflation data later in the week. Soaring stock prices for Intuitive Surgical and Lennar boosted the market. In Asia, Japan’s Nikkei Stock Average exceeded the 35,000 yen mark for the first time since February 1990.
China persuades investors
As reported by state media, China has now vowed to ease overseas investment. Chinese Vice Premier He Lifeng met with global financial executives on Wednesday, but tensions between China and the United States and concerns about economic growth have made investors wary of putting money into the country.
Waiting for inflation report
December inflation data released on Thursday could well shake up the market’s perception of how soon the Federal Reserve will start cutting interest rates, and by how much. Consumer prices likely rose slightly last month, with Dow Jones forecasts showing a 0.2% rise in the final month of 2023 and a 3.2% rise for the full year.
[PRO] Tesla vs. BYD
Tesla is a popular manufacturer with investors, but BYD’s sizable rivals in China could give Wall Street’s EV darling Tesla some competition. Pros analyze whether investors should stick with Tesla or buy upstart BYD.
Bitcoin has just received the biggest endorsement, giving the crypto fraternity the most powerful bragging rights ever.
The SEC’s decision to approve the creation and trading of a Bitcoin ETF will allow for better adoption of the world’s oldest cryptocurrency by mainstream finance.
The Grayscale Bitcoin Trust, which holds about $29 billion in cryptocurrencies, is likely to be converted into an ETF following this decision, and Wall Street giants BlackRock and Fidelity will also enter the playing field. become.
“While today’s news is perhaps the biggest since Bitcoin’s launch, the approval of spot ETFs should not be viewed in isolation, given the timing of the halving scheduled for April. This will reduce BTC supply.” It’s a combination of both of these events that could start a new bull market in history.”Bitcoin could very well reach $100,000 in 2024.”Digital Assets said Antoni Trenchev, co-founder and managing partner of the company Nexo.
Trenchev also noted that there is a temptation to say that the approval of the Spot Bitcoin ETF is a buy-the-rumors, sell-the-news event.
The decision came a day after the SEC’s official social media account incorrectly stated that Bitcoin ETF trading had been approved. The SEC confirmed that the account was compromised.
U.S. stocks also rose on Wednesday, with the S&P 500 closing 0.57% higher and the Dow Jones Industrial Average gaining 0.45%. The Nasdaq Composite rose 0.75%.
Later in the day, investors will also turn their focus to consumer price data, which is expected to show inflation rising slightly in the final months of 2023.
This could call into question whether the market is ahead of its time in anticipating a Fed rate cut. There remains a wide gap between what the US central bank has indicated regarding monetary easing and market expectations.
[ad_2]
Source link
