Bitcoin clears US$89k up 100%. $100k next. Bitcoin stocks fly | Tesla rises 9% as Musk-Trump 'mate-ship' to expedite self-driving | US banks hit highest levels in history. Bull run. What's next?
Bitcoin is going bananas with more upside ahead and bets on for US$100k after clearing US$89k
This morning we watched BTC move from over US$87,000 to US$88,000, and now it's knocking on $89,000 after rising 100% this year, with bets in the options market for it to hit US$100k. Trump is expected to cause a supply squeeze with his plans to buy Bitcoin while also planning to add Bitcoin as an asset in the US government’s strategic reserve, alongside gold. This is, of course, not confirmed, but watch our video from yesterday on what BlackRock and VanEck had to say—they’re very bullish on Bitcoin, partly because they’re BTC ETFs.
On moomoo, we’ve seen investors buy into BTC ETFs, but also Coinbase $Coinbase (COIN.US)$, MicroStrategy $MicroStrategy (MSTR.US)$, and Marathon Holding $MARA Holdings (MARA.US)$ shares up 29%
US stocks hit new records with banks and Tesla hitting new highs
The S&P 500 hit its 51st record high this year on Monday and is now up 28% this year. Shares in big banks hit an all-time high, with the KBW Bank Index $Powershares Exch Traded Fd Tst Ii Kbw Bk Port (KBWB.US)$ rising over 2.4%. Tesla $Tesla (TSLA.US)$ shares were the standout, rising 9% with its stock now just 15% off its 2021 all-time high. Tesla $Tesla (TSLA.US)$ shares are up 1.2% in after-hours trading at $353.95, with speculation that they could keep rising as hedge funds are forced to close their shorts.
Here are a couple of considerations. US stocks momentum just picked up. But there could be be surprises from Nvidia, inflation and tariffs
The last time Trump was elected in 2017, US stocks and small caps rallied for two months. Also, note that the strength of the S&P 500 rally appears to have only gained pace in the last four sessions; momentum has not been this strong since August, if we look at the fear and greed gauge.
But remember when Warren Buffett said, “Be fearful when others are greedy and greedy when others are fearful.” Markets could keep rallying, but they could also face a pullback if Trump announces tariffs, if this week’s US inflation reads are hotter than expected, or if Nvidia’s $NVIDIA (NVDA.US)$ earnings and outlook, due to be released next week, disappoint. The last time Nvidia reported earnings, it disappointed the market, and its shares fell 6.4%. But this time could be different; Nvidia is now the world’s biggest company.
So, what should you expect from Nvidia next week?
The market wants to see revenue grow to us$33 billion, up from last quarter’s $30 billion. Also, watch Nvidia’s $NVIDIA (NVDA.US)$ outlook. It just has to guide for future revenues of more than $32 billion—a relatively low bar. This means there’s room for Nvidia to deliver a show stopping, better-than-expected result, especially since big tech companies like Microsoft $Microsoft (MSFT.US)$ are guiding that they’re spending us$200 billion on AI infrastructure this year.
What if the S&P 500 and Nasdaq pull back, dragged down by Nvidia or one of the above factors?
Then consider you’ll likely see investment managers buying the dip, given that we’re in a US central bank rate-cutting cycle and that so much money has come out of bonds.
Consider that the US dollar is continuing to rise, which is hurting Australia’s share market and GOLD
Fund managers were light on the US dollar in the lead-up to the election, but they’re now in accumulation mode, buying more US dollars. This is impacting GOLD, and the trajectory for gold has shifted now with US bond yields and the US dollar continuing to march up, which suggests that as long as this dynamic is in play, gold weakness could lie ahead.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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Moomoo Official Market Strategist
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