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Stocks yesterday continued to witness a 2.35% drop of the Nasdaq, the Dow Jones was flat and the S&P 500 was down slightly. Stock futures were up slightly in all three indexes. The oil market rose slightly to $110 while gold fell slightly to around $1,859 an ounce.
Bitcoin also fell on the day but then appeared to rally in favor of stock futures to around $30,000. Altcoins also rose slightly in the same trend.
There has been a time when BTC and ETH have been pushed to the floor more, but in recent weeks, they have been withdrawn from the exchange. The amount of BTC, ETH on exchanges is still in a downtrend on exchanges.
Miners are showing signs of being more active in the past few days. It is possible that the migration came from the small miners when the large mines had good financial potential and they invested in new and more efficient mining equipment.
Last week, according to Coinshare statistics, capital flows out of crypto. This was caused by a large drop in UST and LUNA.
The correlation of BTC with the US stock market, especially Nasdaq is very high. The effect of interest rates or inflation on stocks also affects BTC and crypto. Shares of Snap continued to fall 43% in yesterday’s trading after Snap warned investors it would fall short of its adjusted revenue and earnings targets for the quarter. present. Shares of social media and some digital advertising companies also fell. Like Pinterest down 23.6%, Facebook’s parent Meta down 7.6%, Google down 5% and Twitter down 5.6%.
Abercrombie & Fitch reported an unexpected loss for the first quarter as shipping and product costs hit sales. The apparel retailer also cut its sales outlook for fiscal 2022, predicting that economic difficulties will remain at least through the end of the year.
There’s also some good news on Q1’s financials. Nordstrom reported fiscal first-quarter revenue that beat analysts’ expectations and raised its full-year outlook. This reflects business dynamics as shoppers head to the company’s department stores to refresh their wardrobes with designer brands and shoes. Nordstrom now sees fiscal 2022 revenue, including credit card sales, growing by 6% to 8%, higher than previous estimates of a 5% to 7% increase.
The influence of the Fed raising interest rates also gradually seeped into the market and indirectly affected the real estate market. House prices have proven, although the demand to buy houses is still higher than the number of houses for sale. New home sales fell to their slowest rate since the start of the Covid pandemic. New home sales fell 16.6% in April from March, much higher than expected and down 26.9% from April 2021, according to the US Census.
Builders are also starting to see an increase in cancellation rates. While those aren’t showing up in the earnings release yet, analysts who follow builders are starting to report it.
In fact, inflation is also caused by the Fed printing money to support the economy during the past pandemic years. The Fed’s rate hike is likely to continue in the coming months. Three months is usually the time when the Fed observes the impact of an interest rate increase on the market before deciding whether to raise interest rates. Therefore, many investors expect the Fed to reduce the rate of interest rate hikes to be unlikely in the next few months.
Is it too late to invest in crypto?
The Fed has released a statistic on US finances that has a notable crypto-related section. Statistics show that in 2021, 12% of adults hold or use cryptocurrencies in the United States. Of these, 10% of adults have used crypto as an investment, while 2% of adults say they use crypto to buy something or make a payment in the previous 12 months, and 1% Use it to send money to friends or family.
In addition, the majority of crypto investors are people with a good understanding of financial economics and have a good income. They also invest in a variety of different assets. Up to 46% of those who only use crypto to invest have an income of $100,000 or more, while 29% have an income of less than $50,000. Also, 99% of people who invest in crypto, but don’t use it to trade, already have a bank account, and 89% of crypto investors have at least some retirement savings.
A study by the European Central Bank (ECB) also showed similar results. In which, the rich are more likely to own than the poor. The difference from the US is that knowledgeable or completely ignorant people participate in crypto while the middle group does not. Nearly 6 out of 10 adults using cryptocurrencies to transact have an income of less than $50,000. The remaining 24% of trading users have an income of at least 100,000 USD.
From the above reports, it can be seen that the number of people holding and investing in crypto is still very low. Therefore, the investment opportunity is still very large and the potential for growth is high when the market is getting bigger and bigger. When investing in markets at an early stage, the risk is higher but the potential return is higher. Similarly, the sooner investors decide to invest in technology stocks such as Microsoft, Facebook, Amazon, etc., the later the profits will be huge.
Bitcoin and crypto are still a very small market and early stage to invest in. It has new applications such as helping to transfer money across countries quickly and at a very low cost. Blockchain technology makes BTC transparent because the transaction history is stored on the blockchain and is almost immutable. Investors who capture and invest in the early stages have the best growth opportunities.
Some other information:
Billionaire Ray Dalio claims that Bitcoin has made ‘huge achievements over the past decade’, hence the change of opinion towards the asset. He emphasized that Bitcoin has emerged as an alternative to gold and other assets.
Billionaire and author Robert Kiyosaki of ‘Rich Dad, Poor Dad’ has urged investors to invest in Bitcoin and precious metals amid a volatile global economy.
Swiss bank Dukascopy has accepted Tether (USDT) becoming the first stablecoin they offer for customers to be able to deposit and withdraw stablecoins directly from their crypto wallets.
Gafisa, one of Brazil’s major real estate developers, has announced that it will accept Bitcoin as payment for apartment purchases, making it yet another publicly traded company that accepts real estate. digital product.
Japanese crypto exchange Bitbank has announced a partnership with financial firm Sumitomo Mitsui Trust Holdings to form the Japan Digital Asset Trust (JADAT). Once incorporated, the company will specialize in custodial services for digital asset holdings, including cryptocurrencies, tokens, stablecoins, and NFTs.
Coinbase has entered the Fortune 500, a ranking of the largest US companies by revenue, becoming the first crypto company to join the list. Listed crypto exchange Nasdaq has posted over $7.8 billion in revenue for fiscal year 2021, placing it 437th on the 2022 list.
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