In this video, Sam discusses the recent performance of Bitcoin and other cryptocurrencies. In terms of the US economy, Janet Yellen has stated that US banks may become more cautious, which could potentially negate the need for further Federal interest rate hikes. This could have a ripple effect on the market, including crypto and stocks. There are also some big earnings reports coming up, including Netflix, Bank of America, Tesla, Morgan Stanley, and IBM. Bitcoin has been doing well, currently trading at almost $30,500, and its dominance is going down. The eth vs. Bitcoin chart is currently showing lower highs, but there is optimism around ethereum’s upgrade and increasingly deflationary nature. Finally, there are upcoming inflation gauges that could affect the Fed’s decision on interest rates.
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Heading 1: What You Need to Know This Week in Crypto and Stocks
Heading 2: Bitcoin’s Rise and Crypto’s Success
The past seven days have been great for Bitcoin, with an increase of 8.5%. However, all of crypto has been doing well, with Bitcoin dominance going down a little bit this week. Yellen, the Treasury Secretary, recently commented that banks might become more cautious and lend further in wake of the recent bank. This could possibly negate the need for further Federal interest rate hikes. Yellen’s comment has possibly indicated that the US has gone towards the end of the rate cycle. This could potentially affect all of crypto and stocks.
Heading 2: Economic Data
There isn’t not much going on this week when it comes to the US economic calendar. Jobless claims and existing home sales are the main events happening. However, there are significant earnings happening this week, including Netflix on Tuesday and Tesla on Wednesday. Morgan Stanley, U.S Bancorp, and IBM will also be releasing their earnings.
Heading 2: Bitcoin Dominance and Ethereum
Bitcoin dominance is decreasing, and Ethereum is making progress. Ethereum had a massive upgrade, with Ethereum supply decreasing steadily. This results in Ethereum becoming more and more deflationary. Investors are becoming more confident in staking their Ethereum, and this is bullish for the currency. Eth versus Bitcoin has been rising but is still showing lower highs. It would be interesting to see if Eth breaks out or gets rejected.
Heading 2: Inflation Gauges
The Personal Consumption Expenditures (PCE) report is coming up next week. This is the Federal Reserve’s preferred inflation gauge. The report from last month was at 5%, which is concerning. The previous reports have been coming in low, and true inflation is coming down too. Hopefully, the PCE report comes in low once again. This might be the final nail in the coffin where the Fed says they need to raise 25 basis points one more time and then be done speaking more dovishly. Alternatively, they might speak cautiously just to keep the market a little scared until the next rate hike.
