Our mission is to help you obtain financial freedom. Checkout Our Youtube Channel Checkout Our Youtube Channel

JULY 10, 2023


Investors in Bitcoin are finding comfort in the remarkable rise the smaller cryptocurrency, Litecoin, which has outperformed the broader crypto market over the past year. Litecoin’s impressive growth of almost 90% in the past year can be attributed to its halving event – a process also on the horizon for Bitcoin, which will decrease the token’s supply. Halving events, occurring every four years, cut the rewards received by miners in half, effectively capping the total supply of Litecoin at 84 million and Bitcoin at 21 million tokens, respectively. Litecoin’s performance over the past 12 months has surpassed Bitcoin’s 39% increase and the 22% gain in a gauge of the largest 100 tokens. However, Litecoin’s growth has recently tapered off after reaching a peak in early July.


This week marks the beginning of the earnings reports season, but the expectations are not particularly high due to slowing economic growth and the impacts of inflation. There is a projected decline of 6.8% in year-over-year earnings, along with a contraction of 0.4% in topline sales, however, analysts are still hopeful that this quarter may represent the lowest point in earnings contraction, with optimism surrounding a potential rebound for next quarter. One critical factor that will be closely watched is the the ability of companies to pass on increased prices in order to protect profit margins. Moreover, as there is still a lingering sense of uncertainty – especially with plans for the Federal Reserve to increase interest rates in July, forward guidance from companies will play a crucial role in navigating the currently unclear economic outlook. This week, the spotlight will be on the eagerly anticipated kickoff of bank earnings on Friday, along with the release of earnings reports from twelve S&P 500 companies.


The largest banks in the U.S. are expected to report a significant increase in loan losses due to rising interest rates and inflation. Although banks have benefited from higher interest rates through increased lending and investment income, banks are now experiencing the negative effects on borrowers. The six largest banks are predicted to write off a collective $5 billion from defaulted loans in the second quarter, and an additional $7.6 billion is estimated to cover potential bad loans. Credit cards and commercial real estate loans are causing the most concern, while investment banking revenues are expected to decline. However, analysts believe that the benefits of higher interest rates will outweigh the challenges for most big banks. JPMorgan is predicted to have the largest percentage jump in loan losses, followed by Wells Fargo, Bank of America, Goldman Sachs, Morgan Stanley, and Citigroup.


During congressional testimony, Federal Reserve Chair Jerome Powell admitted that the central bank was caught off guard by the consequences of reducing its balance sheet four years ago. Although Powell reassured lawmakers that they are committed to avoiding a repeat of the 2019 repo market freeze, Wall Street economists and strategists warn that quantitative tightening (QT) remains complex and unpredictable. QT involves allowing maturing Fed bond holdings to expire without replacement, which reduces cash in the financial system. The full impact of the Fed’s current QT program will be felt in the coming months, and how it unfolds and how the Fed manages the process will shape its future use of the balance sheet. The Fed aims to prevent a repeat of the reserve scarcity that occurred in 2019 and plans to slow down QT when reserves are still plentiful. The reverse repo facility has played a role in maintaining liquidity, with money-market funds using it to hold cash, amounting to over $1.8 trillion.


Monday: Wholesale inventories and Consumer credit reports for May.

Tuesday:  National Federation of Independent Business (NFIB) optimism index report for June.

Wednesday: Consumer price index (CPI) report for June.

Thursday: Initial Jobless claims, Producer price index (PPI) report for June, Delta Air Lines and PepsiCo earnings reports (before market opens), and Federal budget report for June.

Friday: Import price index report for June, BlackRock, Citigroup, JPMorgan, UnitedHealth Group and Wells Fargo & Co earnings reports (before market opens), and preliminary Consumer sentiment report for June.

Inline Feedbacks
View all comments

More ClearValue Insights

Default Thumbnail

JUNE 24, 2024

CRYPTOS PLUNGED The cryptocurrency market is currently experiencing significant losses, marked by its second-largest weekly drop in 2024. This downturn reflects decreasing demand for Bitcoin exchange-traded funds (ETFs) and ongoing uncertainties surrounding monetary policy. An index from Bloomberg tracking the top 100 digital assets reported a 5% decline over the past week, the steepest since […]

Read More
Default Thumbnail


STOCK MARKET Dow Jones ended at $39,150.33 (+0.04%) S&P 500 ended at $5,464.62 (-0.16%) Nasdaq Composite ended at $17,689.36 (-0.18%) The stock market ended the week with mixed performances primarily due to the influential decline of the major player in the technology sector, Nvidia, which dragged down the S&P 500 and Nasdaq Composite. Meanwhile, the […]

Read More
Default Thumbnail

JUNE 21, 2024

STEEP OUTFLOWS It has been reported that as of yesterday, Bitcoin exchange-traded funds (ETFs) in the U.S. recorded their fifth consecutive day of outflows, losing over $900 million this week. Data from SoSoValue indicates that the 11 listed ETFs experienced a loss of $140 million on Thursday with $1.1 billion in trading volumes. Grayscale’s GBTC, […]

Read More