Bitcoin ETFs have turned downward three days after their debut. While the New York Stock Exchange is in a mixed state, the recently launched virtual currency ETF has fallen sharply. As a reaction to overheating for two days after listing, realization for the difference seems to have appeared in large numbers. Bitcoin, Dogecoin, Ripple, and Ethereum are also on the decline. Altcoins are also weak. International oil prices and Treasury bond yields are also fluctuating.
On the 22nd on the New York Stock Exchange (NYSE), the Dow Jones Industrial Average fell in this market. On the other hand, the S&P 500 and Nasdaq are up. The day before, the Dow hit an all-time high, and the S&P 500 rose for six straight trading days until the previous day, close to its all-time high. It appears to be taking a break from the burden of valuations peaking.
Corporate earnings reports on the New York Stock Exchange remain positive. With 80 companies listed on the S&P 500 reporting earnings, 81% reported better-than-expected earnings. After the market close the previous day, Tesla reported its best-ever quarterly earnings. After the announcement, Tesla’s target price rose. .
U.S. weekly unemployment insurance claims are again at their lowest level since the pandemic. Unemployment insurance claims fell 6,000 to 290,000. This is below the 300,000 New York Stock Exchange expectations. This is the lowest level since the corona pandemic.
Manufacturing activity in the Philadelphia Federal Reserve has slowed. The Philadelphia Fed Index recorded 23.8, below both the 30.7 recorded in the previous month and 24.5, an expert forecast compiled by the Wall Street Journal (WSJ).
China’s economic slowdown and the real estate company Hengda Group are also of interest. Hengda is more likely to face default or default on the 23rd. It tried to overcome the liquidity crisis by selling its stake in Hengda Water Industry, a blue-chip affiliate, but the sale failed.
International oil prices are falling. West Texas Intermediate (WTI) and Brent crude are falling. European stocks are down. The London Stock Exchange’s FTSE 100 index fell 0.45% to close at 7,190.30. The DAX30 index of the Frankfurt Stock Exchange in Germany fell 0.32% to 15,472.56, and the CAC40 index of the Paris Stock Exchange fell 0.29% to 6,686.17. The pan-European Euro Stoxx 50 index fell 0.39% to close at 4,155.73. A variable is concerns over the possibility of an official default (default) of Hengda Group, a large real estate developer in China.
The price of Bitcoin, a representative virtual currency, is fluctuating, rising two days after listing, but falling after three days. The news that a bitcoin ETF (exchanged-exchange fund) was listed on the New York Stock Exchange served as a positive news. Ark Investments CEO Cassie Wood, whom Seohak Ants call and follow as ‘money tree sister’, is encouraging chasing and buying, saying, “Institutional investors can climb up to $500,000 with just 5% of bitcoin in their portfolio.”
A Bitcoin ETF listed on the New York Stock Exchange is not a direct investment in Bitcoin. It is an indirect investment product that invests in the Bitcoin futures index traded on the Chicago Mercantile Exchange. The industry attaches great significance to it as ‘the entry into the system of Bitcoin’. Just as gold prices soared after the advent of gold ETFs in 2004, there are also those who expect an upward rally of ‘digital gold’.
Nevertheless, JP Morgan CEO dismissed “Bitcoin as ‘fool’s gold'”, and the founder of the world’s largest hedge fund pointed out that “Bitcoin’s biggest risk is success itself.” On the other hand, the creator of Ethereum promises that “in 10 years, we will be living in the world of metaverse and trading with virtual currency”. For now, I’m in the mood to rest
Daeho Kim, Director, Global Economic Research Institute [email protected]
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