MIXED START
Cryptocurrency markets saw a mixed bag of performance as the new trading week kicked off, with Ripple’s XRP notably standing out with a significant surge of over 21% within a 24-hour period. While XRP’s value skyrocketed, other major digital assets like Bitcoin and Ethereum experienced slight declines of around 2% each, with Solana registering a 5.4% drop. In addition, the overall global cryptocurrency market cap also dipped by 1.5% to $3.37 trillion, causing the CoinDesk Market Index to fall by 1.3%. Nonetheless, despite these recent falls in the digital-asset market, it is still worth remarking that Bitcoin exchange-traded funds concluded November with $105.28 billion in total assets, while ethereum ETFs reached $11.04 billion. Moreover, Ripple is gearing up to introduce its stablecoin RLUSD, geared towards providing a stable digital currency alternative amidst regulatory uncertainties surrounding XRP. This move comes as XRP’s value has soared by a whopping 375% in the past month, placing it as the third-largest cryptocurrency by market cap, surpassing Solana.
ONE MORE PURCHASE
Despite Bitcoin’s recent decline, MicroStrategy Inc. has once again made headlines, as the software revealed its recent acquisition of $1.5 billion in Bitcoin, marking their fourth consecutive weekly purchase. Over the span of November 25 to December 1, the firm added 15,400 tokens to their already substantial portfolio, which now totals around $38 billion worth of the digital asset. Let’s recall that MicroStrategy’s co-founder and Chairman, Michael Saylor, has been instrumental in the company’s transformation into a “Bitcoin Treasury” entity, and this shift has driven MicroStrategy’s shares to surge by more than 500% this year, surpassing the performance of many other prominent stocks. To finance these significant Bitcoin purchases, MicroStrategy has been utilizing the sale of convertible notes and at-the-market share offerings, setting the stage for further growth and diversification within the crypto market.
CASH HOARD
In other news, the stock market has been performing notably well, with some indexes surging to new heights. Nevertheless, despite this, many investors are paying close attention to Warren Buffett’s recent moves as his company Berkshire Hathaway revealed holding a record-high $325 billion in cash. Buffett has been gradually selling off stocks, and this could signal a potential upcoming correction. Let’s highlight that as Buffet advocates for a value investing strategy, he is stressing the importance of buying undervalued stocks and selling at a profit, and as the current market is displaying signs of inflated prices and soaring valuations, investors are being advised to brace themselves for a possible market downturn. Experts remark that despite the recent bullish trend, investors should always keep in mind the potential for market downturns, and one way to navigate such possible crashes is by maintaining cash reserves, avoiding overpriced investments, and remaining composed. This way, investors could mitigate possible losses, as well as capitalize on buying opportunities that may arise when the market corrects.
EXTENDING TRADING HOURS
It has been announced that a new stock exchange, 24X National Exchange, is set to launch in 2025, offering extended trading hours from 3:00 AM CST to 6:00 PM CST on weekdays, with potential expansion to 7:00 PM CST on Sunday through 6:00 PM CST on Friday. This move comes in response to the increasing trend of offering broader trading windows to accommodate global markets. With the aim of addressing the challenge faced by traders during market closures in their local time zones, 24X National Exchange aims to facilitate continuous U.S. equities trading for both institutional and retail customers. The initial focus will revolve around meeting the growing demand for overnight liquidity in U.S. equities in the Asia Pacific region, aligning with the exchange’s mission to provide accessible trading opportunities round the clock.
KEY EVENTS HAPPENING THIS WEEK
Monday: Construction spending report for October, ISM manufacturing and S&P final U.S. manufacturing PMI reports for November, and speeches from Federal Reserve Governor Christopher Waller and New York Fed President John Williams.
Tuesday: Job openings report for October, auto sales report for November, and speech from Fed Gov. Adriana Kugler.
Wednesday: Factory orders report for October, ISM services and S&P final U.S. services PMI and ADP employment reports for November, speech from Fed Chair Jerome Powell, and release of the Fed Beige Book.
Thursday: U.S. trade deficit for October, and initial jobless claims report for week ending on November 30.
Friday: Consumer credit report for October, U.S. employment report and unemployment rate for November, preliminary consumer sentiment for December, and speech from Chicago Fed President Goolsbee.
