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  • Bitcoin Is Knocking on Door of $100,000 -- Markets in 3 Minutes

Bitcoin Is Knocking on Door of $100,000 -- Markets in 3 Minutes

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Bloomberg Nov 22 16:16 · 20.2k Views

Anna Edwards, Guy Johnson, and Paul Dobson break down today's key themes for analysts and investors on "Bloomberg: The Opening Trade."

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Transcript

  • 00:00 Paul, let's start with crypto, shall we, and Bitcoin, because we are watching to see whether it gets to 100,000.
  • 00:06 And there seem to be a lot of reasons to be optimistic in the views of crypto
  • 00:10 investors, crypto buyers about the outlook for crypto in the United States and a new regulatory regime.
  • 00:16 Do we have any sense of what's already priced in and how much higher this goes?
  • 00:21 A great question, Anna.
  • 00:22 With Bitcoin, you never really know.
  • 00:24 There have been significant inflows already that have been pushing the
  • 00:28 price ever closer to 100,000.
  • 00:30 We've seen it in the ETF's this week.
  • 00:32 We also know that there's a lot of options clustered around the 100,000 level, which may be a bit of impediment in the short term to it breaching that level.
  • 00:40 But where it's a punch free, you could expect perhaps there to be some added momentum behind it once it gets there as well.
  • 00:45 As you said, plenty of reasons that the market is excited and optimistic about this.
  • 00:49 We hear that Gary Gensler will be leaving.
  • 00:51 He's been seen as a
  • 00:52 sort of negative or at least a skeptic over crypto holding it back.
  • 00:56 If there's less regulation related to crypto, then maybe the market gets more
  • 01:00 buyers than the bandwagon carries on rolling.
  • 01:03 Likewise,
  • 01:04 some excitement over the possibility of the US administration introducing some kind of crypto czar to, you know,
  • 01:11 they things can unwind pretty rapidly as well and have big checks in crypto as we know.
  • 01:17 But for the moment, the momentum seems
  • 01:18 pretty firmly there and people still joining in getting hold of that rally.
  • 01:23 Paul, the momentum in Europe and in China feels like it's moving in the opposite direction.
  • 01:27 Let's start with Europe.
  • 01:29 How grim does the picture look and how is the data that we're going to get this morning?
  • 01:32 And Christina Guard's speech shortly
  • 01:34 got to inform us of just how bad it is.
  • 01:38 Yeah, you, you you probably have a better handle on that than I do, guy.
  • 01:41 But it certainly doesn't look all that pretty from over here.
  • 01:43 You know, the PMI is kind of just rolling along in the same kind of
  • 01:47 direction with manufacturing still looking very depressed.
  • 01:49 Services not all that shiny either.
  • 01:52 You know, the good news is that brings down inflation, inflation expectations, looking at five year, five year inflation swaps
  • 01:58 right on the ECB's target now just above 2%.
  • 02:01 So that can encourage the ECB to keep on cutting, which will yes, it will undercut the euro, which we've seen a lot of pressure there recently, but it should support the economy a little bit more going forward.
  • 02:10 The other thing to keep an eye on is energy prices going into the winter of course and whether the Ukraine, Russia tensions there continue to ratchet up, natural gas in particular.
  • 02:19 Yes, I note that the the gas price up just 1% this morning, but a substantial rally yesterday.
  • 02:23 Paul, let's talk about China, something a little closer to where you are.
  • 02:26 The overall story from Asia was either was sort of flat to positive this morning, but the China story really negative.
  • 02:33 Once again.
  • 02:33 The market what just worrying about a lack of stimulus measures or a lack of detail around them.
  • 02:40 Yeah, that's it.
  • 02:41 But it where where it's coming from this time is the corporate earnings and
  • 02:44 actually retail sales data has been picking up a little bit recently.
  • 02:47 But you wouldn't know that if you're looking at
  • 02:49 the sort of tech
  • 02:51 supermarket companies which have had a real think of PDD, for example, down 10% in the US trading overnight, really feeling that pressure and they don't have very many ideas.
  • 02:59 They're in a very competitive
  • 03:01 environment, not much more coming through.
  • 03:03 So still lots of pressure there.