Category: And More…

Market News [7/15]

By Nick Spano

Good evening, ladies and gentlemen. It was a rough one out there today. Earnings season is here, but earnings were no match for the all-powerful consumer price index (CPI) The CPI issues by the Bureau of Labor Statistics on Tuesday and showed a 5.4% year-over-year increase, the largest annual increase since August. Yes, inflation scared investors and the Dow, Nasdaq, and S&P 500 indexes erased gains midway through the day.

The past few weeks have been rough for Bitcoin and Ethereum. Both cryptos are down more than 50% from
prior peaks, leaving crypto maxis in confusion. Bears say Bitcoin’s June “death cross” will lead crypto lower.
A death cross happens when an asset’s short-term moving average falls under its long-term moving average.

Bitcoin’s chart is bad news for bulls. To make matters worse, death cross formations are emerging in other large-
cap crypto charts, too. $XRP, $ETH, $BNB, and $DOGE could be weeks away from their respective deaths. On the flip side, bulls think cryptos (like $BTC) might be waiting to break out. Bitcoin is flashing technical signals
that point to a strong jump in price from current levels as soon as next week if trading volume continues to pick up, digital asset broker GlobalBlock said in a note on Monday.

The price of the world’s largest cryptocurrency by market capitalization could break out from its current sideways trading range and jump to $42,000 in the next couple of weeks. A jump like this would be 26% higher
than bitcoin’s price of $33,171 seen around midday on Tuesday.

Underpinning this prediction is the Bollinger Bands indicator, which defines an upper and a lower range that forecasts volatility when constricted. The indicator has been at its tightest spread since September 2020. That month was when bitcoin began its run-up from $10,000 to its all-time high of nearly $65,000 in April of this year.

In other news, The Space Battle of the Billionaires has moved from the Twitter-sphere to the thermosphere. On Sunday, Virgin Galactic founder Richard Branson boarded Virgin’s VSS Unity, traveling faster than three
times the speed of sound to reach the edge of space. Branson just became the first billionaire founder of a space
company to go to space on his own spacecraft. Next up is Jeff Bezos, who announced his trip before Branson
decided to out-space him. The former Amazon CEO plans to take off on a Blue Origin spaceplane on July 20,
along with his brother and a mystery bidder who’s dropping $28M, or $2.5M per minute of ride
time, to join them.

Apart from fueling billionaires’ egos, these trips are major endorsements for NASA-sponsored space tourism (think: going to dinner on the ISS). NASA is leaning on private companies to help commercialize space. In May last year, Elon’s SpaceX became the first private company to send humans to space. In May, Virgin completed its first human spaceflight, a critical step before it flies space tourists; ETA: early 2022. While $250K tickets to space make headlines, tourism is still a tiny sliver of the space industry.

The space industry is taking off in a real way. Space startups raised $7B in 2020, double what they raised in 2018. Today “space customers” mainly consist of. governments and companies paying to launch satellites, cargo, and astronauts into space. In the not-so-distant future, they could be commercial space tourists. In the more distant future, they could be space colonizers on the Moon and even Mars.

Lastly, big business is feeling the pushback of the US. On Friday, President Biden signed an executive order to curb the dominance of companies in industries including shipping, agriculture, healthcare, and tech. The goal: promote competitive markets and limit corporate dominance in everything from railroads to prescription drugs. It is part of a broader effort to confront consolidation and perceived anti-competitive pricing in big industries while also putting big companies on edge.