Market analyst Sam discusses a significant change in the market in his latest video. The ADP jobs report was released, which showed a lower number of new jobs created than expected. This news typically causes the market to rise, as it indicates that the Fed is less likely to raise rates. However, the market fell, with the NASDAQ down 1% and Bitcoin and cryptocurrencies also down. Sam suggests that this may be due to fears of a recession and a weaker job market. Microstrategy also made news by buying over $30 million worth of Bitcoin, making them a larger holder than Mt. Gox.
How is it going everyone, it’s Sam the market just flipped now I want to apologize if there’s any kind of wind I am here on the balcony in Greece. This is our last night here but there’s something massive, a massive change that happened in the market here today.
The ADP Jobs Report
Today, we had an estimate of about 210,000 new jobs non-farm payroll, but what we got was about 140 or 145,000. Typically, this is good news for the market when we have news like this that’s actually bad news. Bad news is good news, good news is bad news. This is crazy but it lowers the FED’s chance to raise rates. Now, we’re seeing the market fall and the NASDAQ’s down about 1%. Bitcoin and cryptos are down on the chance that the FED won’t be able to raise rates that much more anyway. With this lower jobs report, we’re actually seeing a little bit of fear of recession, fear that jobs might not be as tight or the job market might not be as good as people thought. This could cause us to not be able to get that soft landing that we’re all hoping for.
The Market Change
This is an interesting turn in the market. Personally, I wouldn’t put too much weight in it. The market changes week by week, but I think it is important to see what’s going to happen so that way you know if you are got a dollar cost to average on a day where there’s big news and maybe there’s good news or bad news. You can determine what you want to do. If the market has determined that good news is actually good news, bad news is bad news, it does give us a little bit more insight. Typically, good jobs data would be good for the market, bad jobs data would be bad for the market, and it makes sense that if we think the FED’s done raising rates that bad news would be bad news, and good news would be good news.
MicroStrategy Buying Bitcoin
We also got news that MicroStrategy bought some more Bitcoin over 1,000 Bitcoin, worth about 30 million dollars. Now they hold, I believe it’s right around 140,000 Bitcoin, making them a larger holder than Mount Gox. This is good news. Whenever we have someone continuously buying Bitcoin, it does help the price. Obviously, some people would say it’s not great that one entity has so much Bitcoin, and I would agree overall. But personally, if we’re worried about the price only, I think it does make sense that it would benefit the price. If you want to decentralize Bitcoin a little bit more, you can go buy some Bitcoin yourself as well, and as time goes on, obviously more and more entities will be buying Bitcoin. So it will naturally become more decentralized over time, especially as the price goes up. There’s always a price someone is willing to sell, at least they should be willing to sell at it.
Thank you so much for watching. I really do appreciate it. Thank you for the patience while I’ve been here in Greece, obviously like I said, beautiful view, but it’s definitely hard to film over here because of time difference. Hit the Bell notification and the Subscribe button underneath the video, and I’ll see you in the next one. Bye!