US equities started the week strong as bond yields fell early on Monday at the high of last week.
Two positive developments over the past weekend have also aroused investors: the US House approved the Biden government’s 1.9 billion pandemic relief package on Saturday before the Food and Drug Administration granted emergency approval to Johnson & Johnson’s JNJ
COVID-19 vaccine – the first single-dose shot available to Americans.
The price of bitcoin BTCUSD,
rose more than 5% to $ 47,691 on Monday as it regained ground after the worst week of the year last year, after climbing to a record high of $ 58,332 the previous weekend.
In us call of the day, Citi analysts said bitcoin was at a “tipping point” between accepting the mainstream or a “speculative explosion.” But recent developments, including the electric carmaker Tesla’s TSLA,
$ 1.5 billion investment and moves through PayPal PYPL,
Visa V,
and Mastercard MA,
accept payments, show the former.
The analysts, led by Kathiti Boyle, managing editor of Citi GPS, noted that there were a “large number of risks and obstacles” in the way of the progress of the cryptocurrency.
“But weighing these potential barriers to opportunities leads to the conclusion that bitcoin is at a turning point and that we could potentially be at the beginning of a massive transformation of cryptocurrency into the mainstream,” they said.
The report adds that bitcoin may eventually become ‘the currency of choice for international trade’, due to its global reach, neutrality and lack of exposure to foreign exchange.
The biggest change in recent years has been the shift from a retail-oriented effort to ‘something that looks attractive to institutional investors’, the authors said.
If recent efforts lead to a digital currency backed by a central bank, individuals and businesses will, like today, have digital wallets containing different cryptocurrencies, with checking, savings and treasury accounts. “In this scenario, bitcoin could potentially be optimally positioned to become the preferred currency for world trade,” they added.
However, the obstacles ahead on the way are the upgrading of the market and the possibility that the cryptocurrency space may move closer to the supervision and rules of traditional financial regulators, Citi noted.
The markets
US equities made early gains, with the Dow Jones Industrial Average DJIA,
2%, or 620 points, higher shortly after the openings. The S&P 500 SPX,
and the Nasdaq Composite COMP,
was also on. European stocks climbed and Asian markets moved higher overnight in hopes of Biden’s US stimulus package and after the sell-out last week.
The buzz
Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, said he “should not hesitate at all” to take Johnson & Johnson’s COVID-19 vaccine, and that all three of the vaccines available to Americans ‘very effective’.
Reddit CEO Steve Huffman reiterates his praise for the WallStreetBets forum that has dropped ‘meme shares’ over the past few weeks. Huffman said the community has uncovered a gap between those who have access to the financial markets and the outside world.
British homeowners increased on Monday, according to reports the government will try to improve homeownership with a new mortgage guarantee.
Cruise carrier Royal Caribbean Group has said it has launched a $ 1.5 billion public offering.
Ladbrokes owner Entain ENT,
said it had increased its offer to rival Swedish sports betting company Enlabs.
At the Golden Globe Awards, ‘The Crown’, ‘Schitt’s Creek’ and ‘Nomadland’ were among the big winners.
Random reading
Actor Ben Stiller’s baked trophy and other Golden Globes highlights.
Doctor appears in court during an operation.
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