Quanta Capital

21/05/2024

𝐆𝐌𝐄: 𝐆𝐚𝐦𝐞𝐒𝐭𝐨𝐩 𝐒𝐭𝐨𝐜𝐤 𝐁𝐚𝐜𝐤 𝐭𝐨 𝐏𝐫𝐞-𝐑𝐚𝐥𝐥𝐲 𝐋𝐞𝐯𝐞𝐥𝐬 𝐀𝐟𝐭𝐞𝐫 𝐅𝐫𝐨𝐭𝐡𝐲 𝐆𝐚𝐢𝐧𝐬 𝐅𝐚𝐝𝐞 𝐨𝐧 𝐒𝐡𝐚𝐫𝐞 𝐒𝐚𝐥𝐞

Shares have erased 75% of their peak valuation from last week, leaving retail traders scrambling and trying to figure out what happened.

GameStop stock GME has erased all gains from last week when shares rocketed more than 300%, going from $20 to $80. The frothy share price increase — initially set in motion by Roaring Kitty’s comeback — has staged a massive about face and the stock is back to where it was before the surge, wiping out 75% from last week’s peak valuation. What’s behind the rollercoaster ride and is that the end of the meme stock revival?

The video game retailer announced plans on Friday to sell as much as 45 million shares in an effort to capitalize on the powerful upside swing. Investors aren’t fans of that practice because it waters down existing shares. With this maneuver, GameStop shares are poised to be worth about 87% of their current value. Also, issuing 45 million shares will add 15% to all outstanding shares.

In another filing, GameStop said that it expects net sales for the current quarter to come in way below estimates — $872 million to $892 million vs. $1.045 billion expected and $1.237 billion in last year’s time span. Still, meme stocks rejiggered investors’ emotions (and portfolios), sparking hopes of a possible meme stock rally 2.0. Or at least had retail traders excited about their favorite picks.

17/05/2024

𝐌𝐞𝐫𝐜𝐞𝐝𝐞𝐬-𝐁𝐞𝐧𝐳 𝐍𝐗𝐓 𝐏𝐚𝐫𝐭𝐧𝐞𝐫𝐬 𝐰𝐢𝐭𝐡 𝐌𝐨𝐣𝐢𝐭𝐨 𝐭𝐨 𝐋𝐚𝐮𝐧𝐜𝐡 𝐍𝐞𝐰 𝐍𝐅𝐓 𝐂𝐨𝐥𝐥𝐞𝐜𝐭𝐢𝐨𝐧

Mercedes-Benz NXT's new collection, 'The Era of Technology,' is the second of seven eras in the company’s 'Icon' series on Mojito.

17/05/2024

𝐁𝐢𝐭𝐜𝐨𝐢𝐧 𝐏𝐫𝐢𝐜𝐞 𝐏𝐮𝐦𝐩𝐬 𝐇𝐢𝐠𝐡𝐞𝐫 𝐚𝐬 𝐌𝐨𝐫𝐠𝐚𝐧 𝐒𝐭𝐚𝐧𝐥𝐞𝐲 𝐑𝐞𝐯𝐞𝐚𝐥𝐬 𝐒𝐢𝐠𝐧𝐢𝐟𝐢𝐜𝐚𝐧𝐭 𝐇𝐨𝐥𝐝𝐢𝐧𝐠𝐬 𝐢𝐧 𝐔𝐒 𝐒𝐩𝐨𝐭 𝐁𝐢𝐭𝐜𝐨𝐢𝐧 𝐄𝐓𝐅𝐬 – 𝐇𝐞𝐫𝐞’𝐬 𝐭𝐡𝐞 𝐋𝐚𝐭𝐞𝐬𝐭

The Bitcoin price has been pumping higher this week in wake of US CPI data that pointed at moderating price pressures.

14/05/2024

𝐁𝐓𝐂/𝐔𝐒𝐃: 𝐁𝐢𝐭𝐜𝐨𝐢𝐧 𝐖𝐨𝐛𝐛𝐥𝐞𝐬 𝐍𝐞𝐚𝐫 𝟏𝟎𝟎-𝐃𝐚𝐲 𝐌𝐨𝐯𝐢𝐧𝐠 𝐀𝐯𝐞𝐫𝐚𝐠𝐞 𝐢𝐧 𝐖𝐚𝐢𝐭 𝐟𝐨𝐫 𝐍𝐞𝐱𝐭 𝐋𝐞𝐠 𝐔𝐩 𝐀𝐛𝐨𝐯𝐞 $𝟔𝟑,𝟎𝟎𝟎

Inflation data out of US could spark fresh buying momentum if price pressures show a declining trajectory.

Bitcoin BTCUSD was off to a strong start of the week after a weekend of gains. Prices drifted higher over the past couple days, grinding toward the $63,000 mark. Early Monday morning saw investors extend their long bets on the OG token as markets broadly prepared for big events over the next few days. One key report could stir up the scene and ignite a fresh rally in the crypto space.

America’s inflation data for April is slated for release on Wednesday. Digital asset enthusiasts will be watching to see if consumer prices have cooled — a sign of a healthy economy and a driver of more courageous betting on risk assets, such as Bitcoin and company. On the other hand, another hot inflation print may spark fears of an economic overload and could lead to a sizable wind-down in crypto prices.

Bitcoin hit a record of around $74,000 per coin in mid-March and is now floating near $62,000, or about 17% below the ultimate peak. Despite the modest drop (by crypto standards), Bitcoin has added more than 40% to its valuation this year, or about $500 billion in market capitalization to a total worth of $1.2 trillion. The entire digital asset space has wiped out about 23% from its record high valuation of $3 trillion to float near $2.3 trillion.

10/05/2024

𝐉𝐚𝐜𝐤 𝐃𝐨𝐫𝐬𝐞𝐲 𝐬𝐚𝐲𝐬 𝐁𝐢𝐭𝐜𝐨𝐢𝐧 𝐰𝐢𝐥𝐥 𝐛𝐞 𝐰𝐨𝐫𝐭𝐡 ‘𝐚𝐭 𝐥𝐞𝐚𝐬𝐭 𝐚 𝐦𝐢𝐥𝐥𝐢𝐨𝐧’ 𝐛𝐲 𝟐𝟎𝟑𝟎

Jack Dorsey predicted that the price of Bitcoin could reach “at least a million” by 2030, and he provided more insight into his shock departure from the board of BlueSky on May 6.

07/05/2024

𝐁𝐓𝐂/𝐔𝐒𝐃: 𝐁𝐢𝐭𝐜𝐨𝐢𝐧 𝐀𝐝𝐝𝐬 𝟏𝟎% 𝐢𝐧 𝐖𝐞𝐞𝐤𝐞𝐧𝐝 𝐏𝐮𝐦𝐩 𝐀𝐟𝐭𝐞𝐫 𝐉𝐨𝐛𝐬 𝐃𝐚𝐭𝐚 𝐅𝐮𝐞𝐥𝐬 𝐁𝐞𝐭𝐬 𝐨𝐧 𝐑𝐢𝐬𝐤 𝐀𝐬𝐬𝐞𝐭𝐬

Orange coin enjoyed tailwinds from Friday’s nonfarm payrolls — fewer employed people means risk is back on. Here’s why.

Bitcoin prices BTCUSD shifted to a higher gear on Friday and carried on over the weekend, notching a 10% gain after the latest US economic data rekindled risk appetite. The orange coin pumped from a Friday low of $58,670 to a weekend high of $64,500 a piece. Turns out, fewer jobs created are celebrated by risk takers globally. Monday prices kicked off on an upbeat note too, eclipsing $65,000 per token.

Why is that? Nonfarm payrolls arrived at a pace much lower than anticipated. Employers in the US added 175,000 new hires in April, undershooting estimates of 238,000. The report was cheered by investors because it was a stepping stone toward the awaited interest rate cuts — a total of three have been promised by the US Federal Reserve.

Lower rates are generally good for risk assets, especially Bitcoin – the epitome of investment risk. When borrowing costs are relatively low, businesses are stimulated to get loans and expand their operations. Consumers are encouraged to take out their money from the bank and pursue higher, yet riskier, returns. They may also choose to borrow for housing, kids, and … crypto? All that spells good for global markets and the digital-asset industry.

03/05/2024

𝐁𝐢𝐭𝐜𝐨𝐢𝐧 𝐓𝐫𝐚𝐝𝐞𝐫𝐬 𝐓𝐚𝐫𝐠𝐞𝐭 𝐓𝐞𝐬𝐭 𝐨𝐟 $𝟓𝟑,𝟎𝟎𝟎 𝐒𝐮𝐩𝐩𝐨𝐫𝐭 𝐚𝐬 𝐁𝐓𝐂 𝐏𝐫𝐢𝐜𝐞 𝐏𝐫𝐞𝐝𝐢𝐜𝐭𝐢𝐨𝐧𝐬 𝐑𝐞𝐦𝐚𝐢𝐧𝐬 𝐁𝐞𝐚𝐫𝐢𝐬𝐡 𝐅𝐨𝐥𝐥𝐨𝐰𝐢𝐧𝐠 𝐅𝐞𝐝 𝐌𝐞𝐞𝐭𝐢𝐧𝐠

The Bitcoin (BTC) price is consolidating in the mid-$57,000s in wake of the latest policy announcement from the US central bank.

30/04/2024

𝐃𝐗𝐘: 𝐃𝐨𝐥𝐥𝐚𝐫 𝐈𝐧𝐝𝐞𝐱 𝐅𝐥𝐨𝐚𝐭𝐬 𝐒𝐢𝐝𝐞𝐰𝐚𝐲𝐬 𝐍𝐞𝐚𝐫 𝟏𝟎𝟔 𝐀𝐡𝐞𝐚𝐝 𝐨𝐟 𝐈𝐧𝐭𝐞𝐫𝐞𝐬𝐭 𝐑𝐚𝐭𝐞 𝐃𝐞𝐜𝐢𝐬𝐢𝐨𝐧, 𝐉𝐨𝐛𝐬 𝐃𝐚𝐭𝐚

Currency gauge was slow to start a packed week with a Federal Reserve decision, Jay Powell speech, and nonfarm payrolls ahead.

The dollar index DXY made a slow start to a packed week as investors were getting ready to get carried away. The currency gauge was gravitating toward the 106.00 handle after logging a losing week, but looking into a flurry of events this week. Two key reports are headlining the days ahead — the Federal Reserve’s interest rate decision on Wednesday and the nonfarm payrolls on Friday.

The Fed’s rate decision is likely to keep borrowing costs steady at a 24-year high of 5.5%. But this is largely baked into the market already. More importantly, investors will be holding their breath for Jay Powell’s conference after the rate decision. In his remarks, the Fed boss is likely to lay out hints whether there will be any rate cuts in the coming months. Recent data suggests a complicated situation.

Nonfarm payrolls are coming to wreck (or not?) your portfolio on Friday. Money managers anticipate a fairly hot jobs number of 243,000 for April, lower than the scorching 303,000 in March. Volatility is expected to pick up as we approach the milestone events. And with that, the first month of the second quarter is just about in the rearview mirror.

26/04/2024

𝐏𝐲𝐭𝐡 𝐍𝐞𝐭𝐰𝐨𝐫𝐤 𝐏𝐫𝐢𝐜𝐞 𝐅𝐞𝐞𝐝𝐬 𝐋𝐚𝐮𝐧𝐜𝐡 𝐨𝐧 𝐌𝐨𝐫𝐩𝐡 𝐆𝐢𝐯𝐢𝐧𝐠 𝐃𝐞𝐯𝐞𝐥𝐨𝐩𝐞𝐫𝐬 𝐀𝐜𝐜𝐞𝐬𝐬 𝐭𝐨 𝐑𝐞𝐚𝐥-𝐓𝐢𝐦𝐞 𝐅𝐞𝐞𝐝𝐬

Pyth Network has now launched its Pyth Price Feeds on Morph testnet, a Layer 2 which is looking to redefine the Ethereum scaling.

23/04/2024

𝐗𝐀𝐔/𝐔𝐒𝐃: 𝐆𝐨𝐥𝐝 𝐏𝐫𝐢𝐜𝐞𝐬 𝐒𝐡𝐞𝐝 𝟐.𝟒% 𝐢𝐧 𝐖𝐨𝐫𝐬𝐭 𝐏𝐥𝐮𝐧𝐠𝐞 𝐒𝐢𝐧𝐜𝐞 𝐄𝐚𝐫𝐥𝐲 𝟐𝟎𝟐𝟑

Precious metal moved further away from its record high of $2,430 per ounce. Is it time for a correction?

Key Points:

Gold drops in worst day since early 2023.
Investors scale back bets on safe haven.
US dollar gains ground as risk is back.

Gold prices XAUUSD fell sharply to start the week, slipping more than 2.4% for the asset’s worst day since February 2023. The yellow metal tumbled from the session’s opening price of $2,388 to a closing price of $2,330 per ounce. The drop erased all gains from the past five trading sessions and led gold further away from its record high of $2,430. What’s more, another 1% was erased early on Tuesday, with prices dipping to $2,300.

Some analysts attributed the plunge to elevated profit-taking amid a cooldown in Midde East tensions. Others said that froth in the precious metal market was subsiding and that a correction was taking place. Whatever the reason, gold seems to be booking a much-needed reprieve after a breakneck rally. Over the past two months, gold has added more than 17% to its valuation — a rare sight for a fairly dormant asset.

As investors scaled back their haven bets — gold is considered a safe haven asset — they ramped up their long positions on the US dollar and other risk assets. The US dollar index DXY powered higher on Monday and stocks across the board followed right after.

19/04/2024

𝐁𝐢𝐭𝐜𝐨𝐢𝐧 𝐄𝐓𝐅 𝐇𝐲𝐩𝐞 𝐅𝐚𝐫 𝐅𝐫𝐨𝐦 𝐎𝐯𝐞𝐫: 𝐓𝐨𝐩 𝐄𝐱𝐩𝐞𝐫𝐭 𝐄𝐧𝐝𝐬 𝐒𝐩𝐞𝐜𝐮𝐥𝐚𝐭𝐢𝐨𝐧𝐬

Bitcoin ETF Hype Far From Over: Top Expert Ends Speculations

16/04/2024

𝐈𝐗𝐈𝐂: 𝐍𝐚𝐬𝐝𝐚𝐪 𝐂𝐨𝐦𝐩𝐨𝐬𝐢𝐭𝐞 𝐃𝐫𝐨𝐩𝐬 𝟏.𝟖% 𝐀𝐦𝐢𝐝 𝐖𝐚𝐫 𝐓𝐞𝐧𝐬𝐢𝐨𝐧𝐬, 𝐒𝐭𝐫𝐨𝐧𝐠 𝐑𝐞𝐭𝐚𝐢𝐥 𝐒𝐚𝐥𝐞𝐬 𝐏𝐫𝐢𝐧𝐭

Middle East tensions rejiggered the investment landscape. A bump in retail sales added to bearish sentiment in stocks.

Key Points:

Nasdaq tumbles 1.8% on global tremors.
Retail sales data comes in hot at 0.7%.
Earnings gain traction with bank updates.

The Nasdaq Composite IXIC fell 1.8%, or 290 points, on Monday as investors took refuge in a rising US dollar, abandoning risky assets. Ongoing war tensions in the Middle East, including an expected response from Israel to Iran’s attack, kept markets on edge. Incoming hot data added fuel to the fire.

Retail sales data for March arrived at a surprise 0.7% increase from a month ago. The print brought back inflation concerns and supported the bearish narrative across the board. The other two leading indexes — S&P 500 and Dow Jones — also cracked, clocking out at 1.2% and 0.7% in declines, respectively.

In individual stocks, Tesla shares TSLA dived 5.6% after CEO Elon Musk announced in an email at least 10% of global staff will be heading out the door. Earnings are getting up to speed. JPMorgan
JPM kicked off the season with a disappointing outlook. Goldman Sachs GS came to the rescue with a surprise 28% profit jump.