Stock prices are looking somewhat tepid to begin the week as bond yields and oil prices rise, and China's growth let down. However, crypto investment excitement might be an open opportunity in crypto universe, with potential expectations for the first bitcoin exchanged fund announcement as soon as Monday.
The excitement has pushed Bitcoin BTCUSD, to within a few percentage points of a record last hit in April at $64,889. Our call of the day, from Jim Bianco of Bianco Research, flagged what he called one of the most bullish things that have ever happened to crypto on his LinkedIn page on Sunday.
Nearly 50% of the computing power called haveh rate of the Bitcoin blockchain, pulled the plug, packed up and relocated to a new country in a few months. What did no one notice? It signals an extremely resilient system. How is BTC increasing beyond $600k k since 2006? He said.
China was referring to Bianco as this chart shows:
He credited China for the pullout to a catastrophic mistake, saying that when cryptos take hold as a legitimate medium of exchange, they will be left behind. China declared all crypto transactions illegal last month.
What does it mean to think China is regressing? It seems to be the most plausible explanation, said the strategist, who noted North America is dominating these hash rates.
If you don't blow it, add Bianco.
Jack Dorsey tweeted on Friday, with Bitcoin mining in mind, that his large digital payment group is considering building a Bitcoin mining system around custom silicon and open source technology for individuals and businesses worldwide. Last word goes to Crypto bull: Raoul Pal, the chief executive officer of Global Macro Investor and co-founder of Real Vision financial and Crypto TV, predicted earlier this year that an ETF announcement would pave the way for Bitcoin 250,000.
He said while a bitcoin ETF gives people access to the space that couldn t get access before, investors should consider the middlemen.
This vehicle means the arbitrages take their slice, the ETF Provider takes their slice, the lawyer who set up the fund takes his slice, the administrator, the auditor. I mean everyone takes a slice of your pie, he said in comments over the weekend.
However, he thinks everything is about to explode and we have seen it before. We know that the pattern is going to be the point where it is almost impossible to lose money by owning anything, he said, pointing to this bitcoin chart:
Pal said Bitcoin could hit $250,00 if that same pattern repeats, but he also sees upside in the next year as institutions tend to allocate at quarter-end.
They would have seen the FOMO fear of missing this quarter and many are looking for a new opportunity to invest in 2022, he said. So, hedge funds, institutions, hedge funds, etc. In January, Pal said that he may be allocating more money to crypto.
That said, some investment advisers are extremely skeptical about the initial U.S. Bitcoin ETF.
China grew in the third quarter to 4.9% year over year growth from 7.9% previous, due to a construction slowdown. In the U.S. industrial production for September and the National Association of Home Builders Index for October are both due after the opening bell.
State Street STT, reports during a week that includes Johnson Johnson JNJ, and Netflix NFLX for Tuesday, Tesla TSLA and Biogen BIIB for Wednesday and a bunch of others.
Speaking of Netflix, the new Squid Game is reported to be expected to rake in almost $900 million for streaming service.
Today (September 28) Zillow Z, shares are tumbling after Bloomberg reported that the buying platform will pausing purchasing more U.S. homes to deal with a backlog of real estate inequalities.
Shares of Valneva valN, surged 40% in Paris after the French biotech said that its COVID - 19 vaccine candidate outperformed AstraZeneca s AZN, AZN, in a late-stage 3 trial.
Stock futures YM 00, ES 00, are under pressure, led by Tech NQ 00, as bond yields rise, along with oil prices CL 00, BRN 00, and natural-gas prices NG 00. The dollar dXY, is also up. Elsewhere, it was a mostly weaker day in Asia 000300, NIK, after China growth data and European equities SXXP, are are stumbling.
Last week, this column talked about TINA there is no alternative as rationale for stock markets to just keep moving higher.
A team of strategists at Goldman Sachs led by David Kostin predicts that a record 52% equity allocation for households, investors, mutual funds and pension funds will rise in 2022 with rising unattractive alternatives and high cash holdings. Cooperatives will lead the charge, the bank said in a note.
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