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US stocks yesterday were back in the green in all three Dow, S&P 500 and Nasdaq indexes. Stock futures also rose slightly. Gold and oil also increased to 1827 USD/ounce and 76 USD/barrel, respectively.
Bitcoin also rallied around $16,800 to over $17,000. Altcoins fell slightly.
Nike yesterday reported quarterly results that easily beat Wall Street’s expectations. They also say that the company is successful in freeing up its huge inventory. Although inventories increased year-on-year, they decreased compared to the previous quarter. Nike’s direct sales grew 16% in the quarter to $5.4 billion, and digital sales grew 25%.
There are weeks when the market receives negative news from companies. And this week there is good news from Nike. Currently, the market still sees information in many directions and the economic trend in the coming year is not clear.
Japan raised the margin of the bond’s volatility
Yesterday, the Japanese government surprised the market by increasing the volatility of 10-year bonds. The Bank of Japan has adjusted its yield curve control (YCC) policy to allow yields on 10-year Japanese government bonds (JGB) to fluctuate between (-0.5%) and 0.5. %. The figure is up from the previous 0.25% range, in a move aimed at easing the impact of prolonged monetary stimulus measures.
What surprised the market was that the incumbent central bank governor of Japan is said to be quite conservative with his view of keeping interest rates low and not raising interest rates. Previously, experts predicted that Japan’s interest rates would remain unchanged until a new governor. Although not officially raising interest rates, this is still a step forward, showing that Japan is also starting to show signs of wanting to tighten money.
Japan’s interest rate is at 3.7%. However, this is a very high level because the country has maintained low interest rates for many years despite the sharp increase in inflation.
Japan has kept interest rates low for many years in order to boost the economy. Companies can borrow capital at low interest rates to do business. But its opposite side effect makes the country’s bond yields very low. Therefore, it is not attractive to investors. Therefore, the Japanese government is the largest holder of its own bonds.
Public bonds are an extremely important part of the financial market. When the market is growing, investors will want to invest in investments that have better returns. But when the economy is down, interest rates are high, they want to choose safe assets and have an acceptable rate of return, such as public bonds. The United States also uses public bonds as a measure of the market’s risk tolerance.
Global markets were mixed overnight after the Bank of Japan unexpectedly widened the range of volatility in public bond yields. If the Japanese government really raises interest rates, it will have a negative impact on companies that borrow money from paying higher interest rates. On the positive side, raising interest rates will have an impact on the yen’s appreciation against the dollar.
Cash flow into crypto market in 2022 is higher than in 2021
Although with 2022 prices, the market is already quite pessimistic. Especially after the fall of FTX in November is the latest and most shocking in a series of major crypto market closures this year including Celsius, Voyager and BlockFi. This has shaken investor sentiment and wiped $1.5 trillion in market capitalization from the crypto space.
However, not everyone is pessimistic in this situation. According to Cointelegraph Research, the total inflows into the crypto market in 2022 have surpassed 2021 by nearly $6 billion. The Venture Capital database shows a total of $36.1 billion raised in 2022 while the year is yet to end. The total amount raised in 2021 is 30.3 billion USD.
At the beginning of the year, capital flows from venture capital funds into the market were at a high level. After the sudden collapse of major companies in the crypto market, the inflow of money slowed down but still there. The last major crypto event will purge the market, good companies and projects will continue to exist and develop.
The market is down but areas like web3, NFT, gamefi are still attractive areas. Blockchain entertainment company Coda Labs conducted a survey targeting game developers to see what they think about Web3. The researchers found that the majority of respondents believe they will move towards Web3 gaming, with 75% expecting to work on Web3 projects in the future.
In addition, more than half of the survey respondents believe that Web3 will revolutionize the gaming industry. 40% predict that the Web3 implementation will bring in more new users, while 36% believe that the Web3 integration will help the game better retain users. Web3 is still very promising with the majority of participants in this survey.
Elon Musk’s management of Twitter has raised concerns about his other businesses like Tesla and SpaceX because he has spent too much time on Twitter. After putting out a poll on Twitter on whether he should stop being the CEO of this social network or not, he received a message that the majority said he should. Elon Musk is also looking for a new CEO to replace him, and some sources say that this was started before the poll.
Activision Blizzard COO Daniel Alegre is leaving the game production giant to take over as chief executive officer of Yuga Labs, the company behind the Bored Ape Yacht Club. Yuga’s first and current CEO, Nicole Muniz will continue to serve as a strategy advisor.
Global payments company Visa has signaled a stronger and more sustained interest in cryptocurrencies. Earlier in the week, Visa released a paper outlining how the company could one day collaborate with the Ethereum network on automated payments.
Gate US, the US arm of the fourth-largest cryptocurrency exchange by trading volume, Gate.io says it has received licenses to operate in “several” states, bringing it closer to launching services in the country. The United States is still a very large market that many crypto exchanges want to reach.
Binance has joined the Chamber of Digital Commerce, a US crypto industry lobbying group, according to a Dec. 20 press release from the exchange. The move comes after Binance was criticized for allegedly being unregulated. Joining this association of Binance will also help them have advantages and expand relationships with better officials.
FTX founder Sam Bankman-Fried signed an extradition letter in the Bahamas as revealed by a prison official in the country. Doan Cleare, acting commissioner of corrections for the Bahamas, confirmed Tuesday that Bankman-Fried will fly to the United States on a federal plane following his third courtroom hearing this week.
Voyager Digital has announced that Binance.US has won an asset acquisition bid after its first buyer, FTX, filed for bankruptcy. Many investors have hopes of a potential solution soon for the 1.7 million users who were victims of the Voyager crash. Binance is proposing to pay the victims and send them money when they open an account at Binance.US.
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