BTC new record on BNY Mellon support

TAKEAWAYS

•    Bitcoin pops to new record after BNY Mellon says it will delve into cryptocurrencies
•    WTI crude oil dropped below $58, while Brent fell 1% but held $60 per barrel
•    Tilray, Aurora, Canopy Growth tumble as Reddit short-squeeze ends
•    US dollar closes lower for 5th day, almost erases year-to-date gain
•    Aussie dollar gains, AUD/USD highest since January 21
•    Nasdaq hits record close, Wall Street ends mostly higher after recovering early drop
•    Gold sinks despite dollar weakness
•    Disney shares jump after Disney+ subscribers beat expectations
•    Bumble IPO soared 77% above IPO price but closed well below $76 open price
•    Italy’s 5-Star movement votes to support Draghi government
•    DAY AHEAD: UK GDP, UK Manuf. Prod, Swiss CPI

GURU WISDOM

“It all comes down to interest rates. As an investor, all you’re doing is putting up a lump-sum payment for future cash flow.” – Ray Dalio

MARKETS

*Daily closing price
↗ EUR/USD    1.2119        (+0.13%)
↘ GBP/USD    1.3815        (-0.09%)
↗ USD/JPY    103.77        (+0.17%)
↗ S&P 500    3908.88    (+0.22%)
↗ Hang Seng    30,173.57    CLOSED
↘ Gold        1826.13    (-0.87%)
↘ Oil (Brent)    60.87        (-0.98%)
↗ Bitcoin    47,200        (+5.27%)

NEWS

Cryptocurrencies were charging higher again today, bolstered by warm words from corporations including Tesla, Mastercard and now BNY Mellon. The New York bank said it will begin financing bitcoin and other cryptocurrencies. This means crypto assets could he held securely at a custodial bank just like other financial assets including stocks and bonds – allowing them to flow through the traditional financial system.

The US dollar continued its recent decline with AUD/USD hitting a fresh 3-week high and the euro was supported by positive political developments in Italy where the 5-Star movement supported former ECB President Mario Draghi’s attempt to form a government. 

Stock markets ended higher on Wall Street after rebounding from an early sell-off, perhaps related to the sharp decline in Tilray stock as well as interest in the overhyped Bumble IPO. Markets in Asia are closed for the Lunar New Year. 

Gold and crude oil sunk in unison despite the US dollar weakness in a pullback from a multi-day winning streak.

DAY AHEAD 

*Times in GMT
07:00 – UK Gross Domestic Product (QoQ)(Q4) Prel  [0.5 % Exp vs. 16 % Prev]
07:00 – UK Manufacturing Production (YoY)(Dec) [-3.3 % Exp vs.     -3.8 % Prev]
07:30 – Swiss Consumer Price Index (YoY)(Jan) [-0.6 % Exp vs. -0.8 % Prev]
15:00 – US Michigan Consumer Sentiment Index(Feb) Prel [80.8 Exp vs. 79 Prev]