According to investing, investors remain on the lookout for progress toward the implementation of the US fiscal stimulus in a week shortened by a holiday and while the earnings release season is drawing to a close, there are still some big names to release their reports.
On the economic agenda, the US retail sales figures and the minutes of the last Federal Reserve meeting will be the main events to watch.
Market participants will also closely follow Thursday’s hearing before the House Financial Services Committee on the recent turmoil sparked by trading in GameStop (NYSE: GME) and other short-listed stocks and Bitcoin is approaching 50,000. Dollars. Then, this is what you need to know to start your week.
Price Wanted
Bitcoin hit new all-time highs on Sunday, breaking the $ 49,000 level for the first time.
As indicated in our daily analysis of Bitcoin, it managed to break the downward channel that we had marked within the ABCDE pattern. The confirmation of the break was given at 35548.73 and with it the continuation of wave 5 (intraday) that touched the 0.7 fibo at exactly $ 49000, as said in the previous lines.
On the other hand, Bitcoin got a boost after BNY Mellon announced last week that it would help clients hold, transfer and issue digital assets. The move came just days after Elon Musk, the CEO of Tesla (NASDAQ: TSLA), said he had bought $ 1.5 billion of the cryptocurrency and would accept it as a form of payment for his cars, which is a boost to the normalization of digital assets.
The above facts and other reasonable ones have made the investment interest grow, as well as made it known glassnode on its last report.
The report says that derivatives markets experienced significant action with open interest across futures exploding to a record high of $16.48 Billion, eclipsing the previous peak by over $3.48 Billion.
Further, on Saturday, Bloomberg reported that the investment arm of Morgan Stanley (NYSE: MS) is weighing whether to add the digital currency to its list of possible bets. Some market participants, however, continue to advise caution.
“Investors should remember that bitcoin is not a get-rich scheme. In reality, it has been and will continue to be susceptible to downward price swings, especially when short-term winners want to take profits,”
Gavin Smith, CEO of the cryptocurrency consortium Panxora Group.
Stimulus Program
President Joe Biden’s $ 1.9 trillion Covid-19 aid package will move to the next stage this week as the House of Experts Budget Committee will incorporate all components into a single piece of legislation.
We know that this stimulus program will help the development of many of the financial markets, but we continue with the theory that at some point all this inflation will be collected. So there are two sides of the moment.
Nevertheless, Biden’s proposed spending package, which exceeds the $ 4 trillion enacted by his Republican predecessor, Donald Trump, would have major consequences for a global economy that is recovering slowly and unevenly after suffering its worst recession since the Great Depression last year. from the 1930s.
On Friday, US Treasury Secretary Janet Yellen urged G7 financial leaders to provide more fiscal support to promote a robust and lasting recovery, telling them that “the time to go big is now.”
Business Results
The S&P 500 and Nasdaq closed at record highs on Friday as expectations that new fiscal aid from Washington will help the US economy recover have fueled interest in risk. Investors await Walmart’s (NYSE: WMT) results on Thursday to learn about the strength of consumer spending.
Investors will also be watching earnings reports from hotels, cruise lines and other businesses that have been badly hit by the pandemic for clues as to which could be the first to recover as it recedes.
Hilton Worldwide Holdings and Hyatt Hotels will release their results on Wednesday, followed by Marriott, Norwegian (OL: NORR), Cruise Lines and TripAdvisor (NASDAQ: TRIP) on Thursday.
The US stock markets will be closed on Monday for the Presidents’ Day holiday.
Macroeconomic Data
High on the U.S. economic agenda will be data on retail sales and industrial production for January, which is expected to show the economy got off to a strong start to 2021.
Investors will also be on the lookout for Thursday’s figures on initial claims for unemployment benefits as the recovery in the job market remains slow. Labor market problems support approval of President Biden’s $ 1.9 trillion proposed recovery package, which is being considered in the US Congress.
Meanwhile, the minutes of the Federal Reserve’s January monetary policy meeting will be released on Wednesday.
Throttle Position
Executives from Robinhood, Citadel, Melvin Capital and Reddit will testify before the House Financial Services Committee on Thursday.
The committee is examining how retail traders shorted the shares of GameStop and other companies to sky-high highs, resulting in massive losses for hedge funds like Melvin who had bet against those stocks.
Robinhood emerged as a very popular place to trade stocks, but has come under fire for temporarily restricting the trading of these stocks in question.
The trading platform has said it had to impose the restrictions after wild stock trading triggered a $ 3 billion margin call, straining the company’s balance sheet.
Massive Historical Record
According to criptonoticias, 2.7% of the total supply of ethers (ETH) that is in circulation are now locked in Ethereum 2.0, making up the staking funds of the validators of the network.
The total deposited already reaches 3,100,000 ETH, according to data from the Launchpad.etherum portal. This represents, with ether priced at over $ 1,800 per unit, a total of $ 6 billion locked in Ethereum 2.0.
If we take into account that the total supply of ethers already exceeds 114 million ETH, the new blockchain of the Ethereum ecosystem is about to accumulate 3% of all the ethers that have been issued up to this moment. An increase in blocked funds that has been exponential since its launch.
Ethereum 2.0 stacking pools have been formed, highlighting in number those validators that have not yet been identified and remain anonymous. That is, they are those people or entities that deposited 32 ETH to put their own validator node into operation. This group represents 41% of the total funds in staking.
On the other hand, exchanges like Kraken and BINANCE are the main providers of staking services that are in the market today. Kraken accumulates 14.82% of all ethers blocked in the new network, while Binance’s pool dominates 9.69%.
Other well-known providers that will also have a significant number of validators are the Bitcoin Suisse groups that have a presence of 5.62% on the funds in staking, Stacked.us that claims 4.77% and Lido that has accumulated 2.87 %.
Although these are the best known, there are already more than 40 staking pools that expect Ethereum 2.0 to start operations in 2022.
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