Click here for the PDF: The Weekly Beacon – October 27 2023
We will be giving some macro economic market updates on a weekly basis. No equity recommendations will be given in this commentary, and we encourage you to contact us if you have questions regarding any observations.
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This weeks issue: Bitcoin, Crypto markets, Asset managers, Retail loves bitcoin, Bitcoin ETF, SEC and Bitcoin, Emerging real estate markets, Midwestern love, High quality of life, Bank of Canada, Interest rates, Overnight lending rate, Inflation, Tech companies, Magnificent 7, Alphabet versus Microsoft stocks, Alphabet earnings miss and beat, P/E ratios for technology stocks, House Speaker, Government funding, Natural resources, Consumer goods, AI hype, AI valuations, OpenAI, U.S. home sales, New home sales.
Bitcoin jumps
The price of Bitcoin jumped this week, briefly topping $35,000 for the first time in 16 months. Over the last month, Bitcoin has jumped 31%
This move came as positive sentiment increased across markets regarding a bitcoin ETF being approved by regulators. According to CoinGlass this week’s move could also have been due to investors covering short positions against Bitcoin, as there was $275 million in short liquidations on Sunday, and $100 million on Monday of this week. The largest price action came on the largest short liquidation days, perhaps investors who bet against the exit are taking some profits in the short term before retail investors pile in.
Bitcoin’s move lifted the entire crypto market this week as well as equities tied to crypto assets.
A Bitcoin ETF would give investors a way to gain exposure to Bitcoin’s price movements without owning the asset directly. Major institutions like BlackRock, Invesco, Fidelity, and Grayscale have been pushing for Bitcoin ETFs and have applied to regulators for approvals.
Coinbase told CNBC this week that they believe there will be a U.S. Bitcoin ETF that will be approved by the SEC.
