Bitcoin

Nvidia’s half-trillion hiccup; Bitcoin, China slides

Published

10 months ago

25 June, 2024

Nvidia's half-trillion hiccup; Bitcoin, China slides

A Day Ahead View in US and Global Markets by Mike Dolan

In a glimpse of how the megacap tails wag the dog, a nearly half-trillion-dollar shift in the market capitalization of AI leader Nvidia in just one week continued to affect the entire market, even though most stocks in the S&P500 ended higher on Monday.

Without any obvious trigger other than a jittery earnings spree at the end of Friday’s half-year, Nvidia has retreated nearly 20% from last Thursday’s record high – shaving more than $430 billion off its market value in the process.

But it’s only back to where it was two weeks ago – although it remains in the red again before Tuesday’s bell.

While the AI champion chip giant remains up nearly 140% year-to-date, the sheer scale of the stock and the extent of the shakeout are a blow to index investors.

The tech-heavy Nasdaq predictably lost more than 1% on Monday. The blue chip Dow Jones Industrial Average, on the other hand, rose to a one-month high.

But while about 70% of S&P500 stocks finished higher and the equal-weighted S&P rose 0.5%, the overall index finished 0.3% in the red.

Beyond Wall Street, the impact of Nvidia’s wild swings is equally surprising.

Société Générale strategist Andrew Lapthorne points out that before this week’s shakeout, Nvidia alone was responsible for about 300 basis points of the year-to-date gain of almost 12% in the MSCI World index – surprising because that index contains almost 1,500 of the largest companies.

But while Nvidia’s pullback seemed like a lone hiccup, it coincided with a sharp reversal in Bitcoin this week. Before the emergence of generative AI more than a year ago, Nvidia had long been driven by the crypto boom and the two areas may still be united to some extent.

While it recovered somewhat on Tuesday, Bitcoin also plummeted on Monday and recorded a drop of more than 7% from peak to trough in just over two weeks.

A reversal of money from newly formed exchange-traded funds mid-year? Again, it’s far from clear.

The other alarming reversal of the moment is mainland Chinese stocks, which fell once again on Tuesday and have now almost erased all of the year’s gains.

Partly hit by the Nvidia-led chip swing, the CSI300 lost 0.5% and semiconductor stocks traded on the onshore market fell 4%.

But, hampered by its own housing crisis and a brewing trade war with G7 powers, China has other problems.

The latest geopolitical blow overnight came with news that the Biden administration is investigating Chinese telecommunications companies over concerns they could exploit access to American data through their U.S. cloud and internet businesses by providing it to Beijing .

The story continues

Elsewhere, markets were quite stable.

U.S. Treasuries and the dollar were little changed early Tuesday. U.S. consumer confidence readings for June and an auction of about $69 billion in two-year notes top the daily later.

With politics dominating next week’s horizon in the United States and Europe, European markets were a little disoriented.

French government debt yields and spreads have moderated, largely following relatively benign fiscal policy signals from senior far-right officials leading opinion polls ahead of the first round of French parliamentary elections over the weekend.

Key developments expected to provide further guidance to US markets later on Tuesday:

* US consumer confidence in June, Richmond Fed business survey in June, Dallas Fed services survey in June, Chicago Fed business survey in May, US home prices in April; May inflation in Canada

*Federal Reserve Governor Michelle Bowman and Fed Governor Lisa Cook speak

* US Treasury sells $69 billion in 2-year notes

* US Corporate Profits: FedEx, Juniper, Progress Software

(Reporting by Mike Dolan, Editing by Timothy Heritage mike.dolan@thomsonreuters.com)

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Bitcoin

Big Tech Outperforms Bitcoin (BTC) as Trump Deal Weakens Token

Published

9 months ago

1 August, 2024

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Big Tech Outperforms Bitcoin (BTC) as Trump Deal Weakens Token

Bitcoin has lost out on an asset rally fueled by positive comments from the Federal Reserve, while a tight US election race casts doubt on whether Donald Trump will get the chance to implement his pro-crypto agenda.

The digital asset fell 2.4% on Wednesday, following a Fed-fueled surge in an index of megacap tech stocks Magnificent Seven by one of the largest margins in 2024. The token retreated further on Thursday, changing hands at $63,750 as of 6:10 a.m. in London.

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Bitcoin

‘This is huge’ — Billionaire Mark Cuban issues ‘incredible’ Bitcoin and crypto prediction amid price slump

Published

9 months ago

1 August, 2024

Financial Block Staff

'This is huge' — Billionaire Mark Cuban issues 'incredible' Bitcoin and crypto prediction amid price slump

Bitcoin
Bitcoin
came back with a vengeance this year when former President Donald Trump Cryptocurrency boosts US presidential election in November with ‘revolutionary’ plan.

Subscribe now to Forbes CryptoAsset and Blockchain Consultant and “discover blockchain blockbusters poised to generate 1,000%+ gains” after the bitcoin halving earthquake!

The price of bitcoin has surged to more than its all-time high in recent months, surpassing $70,000 per bitcoin and triggering a wave of mega-optimistic predictions about the price of bitcointhough it fell again this week, falling below $65,000 after the Federal Reserve kept interest rates steady.

Now, as Elon Musk suddenly breaks his silence on bitcoin and cryptocurrenciesBillionaire investor Mark Cuban called a California plan to digitize 42 million car titles using blockchain an “incredible step forward” and “huge” for cryptocurrencies.

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ForbesElon Musk Suddenly Breaks His Silence On Bitcoin After Issuing Shocking Warning Of US Dollar “Doom” That Could Trigger Cryptocurrency Price BoomBy Billy Bambrough

Mark Cuban, famous Shark Tank investor and billionaire owner of the NBA team Dallas Mavericks, has… [+] called a cryptocurrency update “amazing” amid bitcoin’s price slump.

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The California Department of Motor Vehicles (DMV) has digitized 42 million car titles using blockchain, it was reported by Reuters, through technology company Oxhead Alpha on the Avalanche blockchain and designed to detect fraud and facilitate the securities transfer process.

“This is an incredible development for crypto,” Cuban, best known as an investor on TV’s Shark Tank and owner of the Dallas Mavericks NBA team, posted on X, joking that U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler could sue the state as part of his hostility toward cryptocurrencies and blockchain technology.

“The reason this is huge for crypto is because people who hold the tokens will have an app with an Avalanche wallet,” Cuban said. “Tens of millions of Californians having and using a crypto wallet in the next five years, or however long it takes, normalizes the use of wallets and crypto.”

John Wu, president of Avalanche developer Ava Labs, told Reuters that California’s DMV is “creating a wallet that you can download on your phone.”

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ForbesCryptocurrencies Are Suddenly Bracing For A ‘Very Major’ U-Turn In China After Wild Price Swings For Bitcoin, Ethereum, XRPBy Billy Bambrough

Bitcoin’s price has rallied this year, triggering a wave of bullish bitcoin price predictions from… [+] people like billionaire Mark Cuban.

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Last month, Cuban predicted that if the US dollar falls as the global reserve currency, bitcoin could become “a global ‘safe haven’” and a “global currency.” potentially sending the price of bitcoin to a much higher level.

According to Cuban, bitcoin could become what its most ardent supporters “envision” — a means “of protecting our economies… This is already happening in countries facing hyperinflation.”

The price of bitcoin has skyrocketed over the past year, largely due to the world’s largest asset manager, BlackRock, leading a bitcoin attack on Wall Street.

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Bitcoin (BTC) miner Riot Platforms (RIOT)’s second-quarter loss widens to $84.4 million as costs rise

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Bitcoin Mining Profitability Surges in June as Market Adjusts for Halving: Jefferies

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CoinDesk is a awarded media outlet that covers the cryptocurrency industry. Its journalists follow a strict set of editorial policies. In November 2023, CoinDesk has been acquired by the Bullish group, owner of Optimistica regulated digital asset exchange. The Bullish Group is majority owned by Block.one; both companies have interests CoinDesk has a portfolio of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial board to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

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Bitcoin

Why Trump Wants the US Government to Have a “National Stockpile” of Bitcoin

Published

9 months ago

1 August, 2024

Financial Block Staff

Why Trump Wants the US Government to Have a “National Stockpile” of Bitcoin

At a national bitcoin conference in Nashville, Donald Trump finally laid out some of his crypto policy proposals, including a long-awaited part of his plan — building a strategic bitcoin reserve. CNN’s Jon Sarlin explains what it is and why the crypto industry wants it.

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