Bitcoin Eases While Stocks Gain
Main Idea
Bitcoin's price movements are influenced by geopolitical events, corporate developments, and regulatory changes, while global markets react to shifts in US policy and international relations.
Key Points
1. Bitcoin's price fluctuated amid geopolitical tensions, including Iran strikes, while other assets like Nasdaq futures rose due to Nvidia's 4.5% jump after US policy changes on AI chip sales to China.
2. European stocks saw a resurgence as US stocks became less attractive under Trump's 'personal diplomacy' approach, with divisions in Europe over how to respond to China's rise.
3. A new regulatory regime classified cryptocurrencies as commodities under CFTC jurisdiction, contributing to Bitcoin's price surge above $120k, driven by ETF inflows and corporate treasury purchases.
4. The CPI for June was reported at 2.7%, slightly above expectations, with FedWatch indicating a 97% likelihood of no rate cut in the upcoming Fed meeting.
5. MicroStrategy and BitMine made significant cryptocurrency purchases, with MicroStrategy holding through the 2022-23 bear market, while BitMine bought $500M worth of ETH for its treasury.
Description
Bitcoin has been in an inverse correlation with stocks recently, rising to a new all time high while Nasdaq was mostly red due to renewed uncertainty from tariffs.