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US stocks showed mixed results as the Dow Jones Industrial Average dipped while the S&P 500 and Nasdaq Composite gained slightly ahead of a key consumer inflation report. Alphabet's shares surged over 4% following advancements in quantum computing with its new Willow chip, while Oracle's stock fell 8% due to disappointing quarterly revenue. Taiwan Semiconductor Manufacturing Co. reported a 34% year-on-year revenue increase in November, indicating ongoing AI demand, though it marked a decline from the previous month.
Bitcoin's recent 14% correction after reaching $100,000 has not diminished its potential for further growth, as key metrics indicate a cooling-off period. The liquidation of over $1.1 billion, primarily from long positions, has eased sell-side pressure, allowing for stabilization. With futures funding rates normalizing, the market is poised for a new equilibrium, suggesting a positive mid-term outlook for Bitcoin.
Taiwan Semiconductor Manufacturing Co. (TSMC) reported a 34% increase in sales for November, driven by strong AI demand, despite concerns over a slowdown in data center construction. Monthly sales reached NT$276.1 billion ($8.5 billion), with combined sales for October and November up 31.4%. Analysts anticipate a 36.3% growth in sales for the current quarter, while TSMC's shares have surged approximately 80% this year.
Tether has reported a surge in USDT wallets, reaching 109 million, positioning it as a leading digital asset alongside Ethereum and far surpassing Bitcoin. The growth is driven by retail users, with many holding modest balances, highlighting USDT's accessibility, especially in emerging markets. Despite market disruptions, USDT maintains its dominance, commanding 97.5% of the total stablecoin supply across 25 blockchains.
Tether reports a remarkable 71% increase in USDT wallets over the past year, primarily driven by small holders with less than $1,000. This growth surged post-FTX collapse as users opted for self-custody, reinforcing USDT's status as a reliable stablecoin amid market volatility. The presence of numerous low-balance wallets highlights its accessibility for unbanked users, with a notable 29% reactivation rate indicating its practical utility.
India-dedicated global funds experienced a slight rebound with $156 million in inflows after enduring $1 billion in redemptions since October. This uptick follows a period of consistent outflows, with India seeing the second-highest outflows among emerging markets at $2.2 billion, trailing only China. Meanwhile, foreign investors invested $9.9 billion into US funds, highlighting the ongoing dominance of the US in global capital flows.
President-elect Donald Trump indicated that Ukraine may receive reduced military aid from the U.S. once he takes office, questioning why Europe contributes less despite the ongoing conflict. He emphasized the need for NATO allies to share the financial burden and called for an immediate ceasefire and negotiations to end the war. Trump also noted his strong ties with Vladimir Putin and expressed confidence in brokering peace, while commenting on Russia's diminishing interest in Syria following the conflict in Ukraine.
Apple and Samsung face growth challenges in saturated Western markets, while India presents a significant opportunity with its low smartphone penetration and rising economic status. Chinese brands like Vivo dominate the Indian market, driving a shift towards premium devices as consumers increasingly view smartphones as essential investments. However, the complexity of global semiconductor manufacturing poses challenges for relocating production to India, especially amid geopolitical tensions surrounding Taiwan.
As South Korea grapples with political turmoil, its stock market lags behind Taiwan, which is thriving amid a global AI boom. Taiwan's stock benchmark has surged nearly 30% this year, leading to a historic market capitalization gap of about $950 billion, as major tech companies increasingly rely on Taiwanese suppliers.
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