Image Source:  Bitcoin () witnessed a modest decrease over the past week, closing at approximately $65,000, down 1.1% from $65,650 the previous week.The cryptocurrency experienced a significant dip mid-week, dropping below $60,000, but recovered strongly in the latter half, settling close to its opening value. Challenges in the ETF market This period also saw stagnant demand for Bitcoin Exchange-Traded Funds (ETFs), marking the continuation of a recent trend with net outflows totaling about $205 million for the week.This represents the first instance of consecutive weekly outflows since the inception of BTC ETFs, although the cumulative demand remains high with about $12.3 billion in net inflows and an impressive $226 billion in total trading volume since their launch. Impact of the Bitcoin halving Over the weekend, Bitcoin underwent its fourth halving event, a critical mechanism designed to reduce the block rewards from 6.25 to 3.125 BTC per block. Such halvings are pivotal moments for Bitcoin, signaling its maturing ecosystem and affecting both the mining community and market dynamics.Halving events are known to typically impact the price and mining activities due to the reduced reward for mining new blocks. Evolution of Bitcoin mining The mining industry has seen substantial evolution since Bitcoin’s inception, transitioning from a niche hobby to a significant industrial operation. Initially set at 50 BTC, block rewards have progressively decreased, compelling miners to adopt more sophisticated and efficient technologies. Today, Bitcoin mining is characterized by strategic operations that utilize advanced hardware, incorporate renewable energy sources, and implement risk management strategies to sustain […]

Image courtesy of  (Nasdaq: ) shares experienced a modest uptick Tuesday, rising 2.17% to $145.13 at the time of writing, as investors eagerly await the electric vehicle maker’s first-quarter earnings report. The company is expected to face significant challenges, with analysts projecting a  and the worst overall sales since the third quarter of 2022. The  earnings per share forecast stands at $0.35. Tesla Stock Plunged in 2024 Amid Declining Sales Tesla’s Q1 vehicle deliveries , marking the company’s first negative annual sales growth since Q2 2020. This decline is primarily attributed to decreased demand in China and a 9% drop in electric car deliveries compared to last year’s comparable quarter. In response to these challenges, Tesla announced a  exceeding 10% of its workforce.Despite today’s slight gains, Tesla stock has experienced a significant drop year-to-date, falling 36% and making it the worst performer among the ‘Magnificent Seven’ tech stocks. This stark contrast to the substantial gains recorded by tech giants like Nvidia (Nasdaq: ) and Meta Platforms (Nasdaq: ) underscores the severity of Tesla’s underperformance. Recent analyst adjustments reflect a more cautious outlook, with Deutsche Bank downgrading Tesla from Buy to Hold, citing concerns over growth and competition, particularly from China. Tesla No Longer Mangificent Tesla has diverged negatively from its peers in the Magnificent Seven, significantly underperforming, while tech giants like Nvidia and Meta Platforms have recorded substantial gains. Intense , especially from Chinese manufacturers, has been a critical factor in Tesla’s stock performance decline, as these competitors increasingly take market share in the EV sector.Tesla’s strategic […]

The Dow Jones Industrial Average () and Nasdaq Composite (IXIC) are both sporting hefty  this afternoon — the former on track for a fourth-straight win — while the S&P 500 Index () is comfortably higher as well.Wall Street has plenty of earnings reports and economic data to unpack, with home sales rising more than expected for March and median sales prices at their highest level since August. The manufacturing and services purchasing managers’ indexes (PMI) for April fell, the former hitting a four-month low and both hinting at slower economic growth.(Click on image to enlarge) Options traders are blasting JetBlue Airways Corporation (Nasdaq: ) stock, with 24,000 calls and 27,000 puts traded so far, which is seven times the volume usually seen at this point, with the weekly 4/26 6-strike put the most active contract. At last glance, JBLU was down 17.2% to trade at $6.22, brushing off smaller-than-expected first-quarter losses and a revenue win after the airline cut its  outlook. JBLU earlier slipped to its lowest level since February but still sports a 14.7% year-to-date lead.Spotify Technology SA(NYSE: ) stock is among the New York Stock Exchange’s (NYSE) leaders today, up 15.3% to trade at $312.50 and earlier hitting a two-year high of $313.78 at last check. The  reported record profits and beat revenue estimates for the first quarter, with a 14% rise in premium subscribers. Shares are bouncing off a pullback to the 40-day moving average, and boast a 139.5% year-over-year lead.MSCI Inc (NYSE: ) stock is at the bottom of the NYSE, last seen down 11.7% […]

Image Source:  The FTSE 100 has reached a record high, reflecting the global forces driving commodity prices rather than the performance of the British economy. Despite lagging behind other major indices due to Brexit uncertainty, the calm political situation and stable finances in the UK are turning the tide. The Bank of England’s potential to cut rates earlier than expected is providing a boost to stocks, leading to the FTSE reaching an all-time high above 8000 points.Associated British Foods Plc, a major player in the UK, has seen a significant increase in their stock value, with shares rising by 7.5%, making them the top percentage gainer on the FTSE 100 index. The company, which owns various businesses including Primark, sugar, grocery, agriculture, and ingredients, has forecasted a substantial growth in their annual profits. This positive outlook comes after reporting a 39% increase in the first half of the year, driven in part by improved margins at their clothing chain. With an adjusted operating profit of 951 million pounds ($1.17 billion) and a 2% rise in revenue to 9.73 billion pounds in the six months leading up to March 2, the company’s diversified nature is seen as a buffer against economic uncertainties. Richard Hunter, head of markets at Interactive Investor, attributes their current success to the strength of the Primark business. As a result, the company’s stock has reached its highest level since June 2018. J Sainsbury and Tesco both saw an increase of over 1% in their stock prices, while […]

Image Source:  Investors are dumping corporate Exchange Traded Funds (ETFs) as signs emerge that the Federal Reserve will maintain higher rates for longer because of the stubbornly high inflation in the US.Data by ETF.com shows that the iShares iBoxx USD High Yield Corporate Bond ETF () has shed  this month, reversing the gains it made in February. It now has over $14 billion in total assets and has a yield of 5.89%.Meanwhile, the popular SPDR Bloomberg High Yield Bond ETF () has shed $715 million this month after losing $792 million a month earlier. It now has $7.8 billion in assets and yields about 6.6%. The same trend is happening among the safer short-term corporate bonds. For example, the giant Vanguard Short-Term Corporate Bond ETF () has shed assets in the past three straight months and now has over $42 billion in assets.This performance is happening at a time when these bond ETFs have continued to underperform the broader equities market. The HYG and JNK ETFs have all dropped by over 1.28% while the SPDR  ETF () is up by over 5.5%.These funds are nonetheless doing better than long-term government bonds. The closely-watched   has plunged by over 10% this year as concerns about the escalating US public debt continue.(Click on image to enlarge) These bond funds are being affected by the ongoing inflationary trends in the United States. Data released this month revealed that the headline Consumer Price Index (CPI) rose to 3.5% in March while the core CPI jumped to 3.8%.Energy and […]

Image Source: Unsplash It’s been a breathtaking rally for precious metals so far this year. Gold peaked at USD $2431/oz, up 16%, while silver reached $29/oz, marking an impressive 26% increase for the year at its 2024 high. Both metals finally took a breather on Monday, declining by 3% and 5%, respectively.Following a prolonged and nearly uninterrupted rally, Monday’s pullback was natural and expected, according to most market analysts. An apparent de-escalation in tensions between Israel and Iran, coupled with a resilient US Dollar (still above 106 on the DXY), put pressure on the metals. The DXY remains well above its four-year average of 99.Despite the pullback, the fundamentals for the metals remain strong, especially for silver. Global industrial demand is on the rise, led by the electronics sector, while annual mining supply is slightly declining, and above-ground supplies are dwindling. China, a major driver of gold prices recently, saw its wholesale gold demand rise to the highest point since 2019 during Q1, with a total of 522 tonnes purchased from the Shanghai Gold Exchange. Chinese gold ETFs continued to attract inflows, adding USD $164 million in March. The People’s Bank of China, China’s central bank, also reported a 17th consecutive monthly purchase in March, adding 5 tonnes to its gold holdings, which now stand at 2,262 tonnes or 4.6% of its total reserves. China’s gold reserves increased by a total of 27 tonnes in Q1 2024.Looking forward, investors should be prepared for more volatility in the metals market, as numerous […]