SAILING TOWARDS $100,000
The leading cryptocurrency, Bitcoin, is on the brink of a significant milestone as its value approaches the $100,000 mark, with experts forecasting a potential surpassing of this figure by the year 2024. Market indicators and projections from platforms like Kalshi suggest an optimistic outlook, with an 85% likelihood of Bitcoin exceeding $100,000 by the end of the current year. In addition, there is also a notable 9% chance that it could soar to $150,000, reflecting a buoyant sentiment surrounding the digital asset. Moreover, the median projection of $125,000 is further raising expectations about Bitcoin’s performance in the foreseeable future. Furthermore, it is worth remarking that the recent surge in Bitcoin prices, including a noteworthy upsurge in November and a 55% increase in the fourth quarter, has garnered interest and excitement among investors and market analysts alike. This bullish trend is supported by various factors, most notably the role of Bitcoin-focused exchange-traded funds (ETFs) in stabilizing prices by absorbing significant sell-side pressure from long-term holders. Nevertheless, it is also important to note that despite heightened institutional interest and record inflows into Bitcoin ETFs, industry experts remain watchful for potential price corrections while acknowledging Bitcoin’s undeniable momentum and strong institutional support.
BOLSTERED BY BROKERS
As remarked previously, MicroStrategy has made headlines by investing a significant portion of its treasury in Bitcoin instead of traditional assets, and this move has garnered attention from analysts who predict it will attract substantial investment into the world’s largest cryptocurrency. Following a research report by broker Bernstein, which increased the price target for MicroStrategy’s stock to $600 from $290, other brokers like Canaccord also raised their price targets, reflecting optimism about the company’s future. Moreover, MicroStrategy has plans to expand its Bitcoin holdings to 4% of the global supply by 2033, which is a notable increase from the current 1.7%. Furthermore, the company, which is led by CEO Michael Saylor, announced its intention to acquire an additional $42 billion worth of Bitcoin over the next three years.
BEHIND THE SCENES
The ell-known retail company, Macy’s, recently disclosed preliminary third-quarter results and announced a delay in its full earnings report due to an internal accounting investigation. The investigation uncovered erroneous entries amounting to $132 million to $154 million in delivery expenses. These discrepancies caused a 2.4% drop in sales and a 1.3% decline in comparable sales for the company. However, despite these challenges, Macy’s remains committed to its customer service and holiday season strategies, as stated by CEO Tony Spring. The company has been making progress in closing unprofitable namesake stores and focusing on growth opportunities at its successful Bloomingdale’s and Bluemercury brands. Macy’s plans to close about 150 of its namesake stores by early 2027 and continue investing in the remaining locations. In addition, the company has also seen gains from asset sales and growth in its advertising business, offsetting some of the revenue losses. Yet, it is still important to remark that Macy’s stock has faced a 19% decline in value this year, falling behind the broader market performance.
TREASURY FOCUS
Chosen by Donald Trump to potentially serve as Treasury secretary, Scott Bessent is poised to prioritize fulfilling the president-elect’s tax cut and tariff pledges upon taking office. This involves considering the imposition of tariffs on Chinese imports and exploring avenues for reducing government expenditure, although specific strategies have not been elaborated upon. Bessent has also emphasized his commitment to upholding the U.S. dollar’s role as the global reserve currency. In his capacity as the manager of macro hedge fund Key Square Group LP, Bessent holds a critical role in advancing Trump’s agenda, which includes extending expiring tax cuts from 2017 and easing financial regulations. The selection of Bessent has spurred an increase in the value of other currencies in comparison to the dollar, which suggests that there is market confidence in the stability that Trump’s return may bring and that traders believe that there could be potential implications for worldwide financial markets.
KEY EVENTS HAPPENING THIS WEEK
Tuesday: Minutes of Fed’s November FOMC meeting, S&P Case-Shiller home price index (20 cities) and new home sales reports for October, and consumer confidence report for November.
Wednesday: First revision of the GDP for the third quarter, pending home sales, durable-goods orders, advanced retail inventories and wholesale inventories, personal income and spending, personal consumption expenditure (PCE) index, and core PCE index reports for October, Chicago business barometer (PMI) for November, and initial jobless claims for week ending on November 23.
Thursday: Market closed due to the Thanksgiving holiday.
Friday: Fed balance sheet.
