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Ethereum's price has surged above $4,000 amid rising investor optimism ahead of the US Federal Reserve's interest rate decision, with expectations of a 25 basis point cut. Market participants are also hopeful for a crypto-friendly policy from President-elect Donald Trump, who hinted at the potential introduction of a strategic Bitcoin reserve, aiming to keep the US competitive against China. However, investors should remain cautious of volatility as the actual implementation of Trump's plans remains uncertain.
IG
Broadcom's stock continued to rally, while Nvidia faced further declines, entering correction territory. Advanced Micro Devices is projected to miss revenue targets, raising concerns, as the Dow is set for a down open after eight consecutive sessions of losses. Retail sales exceeded expectations, and the Federal Reserve is anticipated to cut interest rates again, with key inflation data due later this week.
CoinShares CEO Jean-Marie Mognetti expressed optimism about Bitcoin ETFs and other cryptocurrencies like Ethereum under President-elect Donald Trump, noting significant inflows into U.S. Bitcoin ETFs. He anticipates a positive regulatory environment that could enhance investment demand for digital assets. Mognetti's views align with Michael Saylor's call for a U.S. strategic Bitcoin reserve, highlighting a potential shift in U.S. policy towards cryptocurrencies.
Ripple has appointed Raghuram Rajan, former Governor of the Reserve Bank of India, to its RLUSD stablecoin advisory board, which also includes notable figures like Sheila Bair and David Puth. Rajan's expertise in central banking and financial regulation is expected to enhance the stablecoin's compliance and credibility in a rapidly evolving financial landscape. His insights, alongside those of other board members, aim to ensure RLUSD's sustainable growth and trustworthiness in digital payments.
Global Bitcoin adoption is surging, with institutions and governments driving demand, potentially pushing its price to $850,000 by 2025. The limited supply of 21 million coins, coupled with significant institutional stockpiling and interest from governments as a hedge against fiat instability, is creating a supply shock. As Bitcoin's role as a digital reserve currency solidifies, retail investors face urgency to act, with current prices around $106,739.74.
Analysts suggest that under a potential Trump administration, a legal framework for staking could enhance institutional adoption of Ethereum, attracting increased liquidity through yield-generating opportunities. However, risks like ether volatility may slow this adoption. Staking-enabled ETFs could significantly boost institutional demand, making Ethereum more appealing as a long-term investment, especially in a declining interest rate environment.
The Dow Jones Industrial Average is facing its longest losing streak since 1978, having dropped eight consecutive days, primarily due to significant losses from UnitedHealthcare Group. Despite this slump, the Dow is still up 16% for the year, while the Nasdaq continues to thrive, driven by technology and AI stocks. Investors are anticipating a quarter-point interest rate cut from the Federal Reserve, which could influence market dynamics moving forward.
CNN
The UAE is emerging as a global blockchain hub, driven by trends in Shariah-compliant services, dirham-pegged stablecoins, and an influx of international talent. Industry leaders emphasize the region's regulatory clarity and potential for rapid growth, particularly in decentralized finance. Recent developments include a stablecoin initiative approved by the central bank, highlighting the focus on local payment methods.
Binance Coin (BNB) is currently testing the critical $700 support level after a significant pullback from its all-time high of $793. Profit-taking and weak market sentiment, compounded by reduced whale activity and declining futures demand, suggest potential further downside, possibly below $700. However, if market conditions improve, BNB could rebound towards the $734 and $750 resistance zones.
Bank of America’s December Global Fund Manager Survey indicates a potential "sell" signal for risk assets, with cash levels at a three-year low and a significant bullish sentiment among investors. The average cash allocation among fund managers has fallen to 3.9%, triggering a contrarian indicator that historically suggests a market peak. Previous instances of similar cash levels have led to negative returns in global equities, while current allocations show a preference for US stocks and global banks, despite a notable underweight in European equities.

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