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Bitcoin tanks 20%

Euro Stoxx 50 – Daily Candlesticks
Source: GKFX / MT4 (January 12, 2020)

ESX50 broke above and is now testing the 3600 level, which was support before the heavy sell-off in March. A continuation of the breakout could lead to record highs, while a turn lower could see old resistance act as support.
 

TAKEAWAYS


•    Bitcoin fell 20% before regaining half the losses, $200 billion wiped off Crypto market cap
•    Twitter stock plummets after it permanently bans President Donald Trump
•    Trump faces second impeachment vote in House on Wednesday
•    Dollar gains after Fed’s Bostic signals rate hike next year
•    Stocks drop for a second Monday, Nasdaq slides -1.5%
•    US 10-year yield hits 1.1%
•    Tesla stock dips on more reports of Apple / Hyundai partnership
•    DAY AHEAD: Central bank speeches
 

GURU WISDOM


“There’s no shortage of remarkable ideas, what’s missing is the will to execute them.” – Seth Godin
 

MARKETS


*Daily closing price
↘ EUR/USD    1.2155        (-0.27%)
↘ GBP/USD    1.3513        (-0.04%)
↗ USD/JPY    103.11        (+0.12%)
↘ S&P 500    3799.61    (-0.66%)
↗ Hang Seng    27,908.22    (+0.11%)
↗ Gold        1843.65    (+0.45%)
↗ Oil (Brent)    55.64        (+0.04%)
↘ Bitcoin    34,307        (-10.25%)
 

NEWS

 

Bitcoin -20%


The weekend losses we mentioned yesterday accelerated through Monday, taking Bitcoin down by 20% before it recovered to end the day down just -10%. The sell-off wiped away $200 billion in cryptocurrency market cap.
 

Trump Twitter


Twitter stock tanked after it took the decision to permanently ban sitting US President Donald Trump. The decision saw flood of users close their accounts and head to alternative platforms. However, Twitter-rival Parler was simultaneously banned by Apple and Google apps stores and Amazon Web Services ended their cloud hosting agreement.
 

Nasdaq -1.5%


Other tech stocks fell, pulling down the Nasdaq. Trump was simultaneously banned on other social media and tech platforms including Facebook, Instagram and Snapchat while Shopify removed the Trump campaign store.
 

Tesla


Tesla was among the biggest tech stock fallers after more reports of the possible partnership between Apple and Hyundai to produce the long-awaited Apple Car. Reports suggest a partnership is close to being agreed with the aim to produce 100,000 electric vehicles per day by 2024.
 

Treasury yields


The US 10-year Treasury had a yield of over 1.1% on Monday, its highest since March ahead of the issuance of new bonds this week. New government stimulus measures are expected to push up government borrowing in the coming months.
 

Dollar gains


Gains in the US dollar were assisted by rising Treasury yields as well as a more sombre mood in stock markets. DXY rose to 90.50, its highest since December. 
 

DAY AHEAD 


*Times in GMT
10:00    BoE's Broadbent speech 
14:35    Fed's Brainard speech 
19:00    Fed's Rosengren speech
 

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