On November 27, 2024, a Bitcoin trading advertising truck in Hong Kong.
Mladen Antonov | AFP | Getty Images
This report comes from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open keeps investors updated on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
What you need to know today
European stocks close higher
U.S. markets were closed Thursday for the Thanksgiving holiday. Asia Pacific market Most fell on Friday. South Korean stocks led the decline, with the Kospi index falling 1.88%. Japanese Nikkei 225 Index Stocks fell about 0.5% as investors assessed Tokyo stocks 2.6% inflation rate November. China’s CSI 300 index bucked the trend and rose about 1.2%.
China tightens tungsten export controls
China will start restricting tungsten exports this weekend as measure Controls the movement of goods that can be used for military and civilian purposes. Argus said this is a sharp departure from the situation in past decades, when China controlled 80% of the tungsten supply chain. To make up for the drop in supply, companies are looking to open or resume tungsten mine production.
U.S. eases ban on chip exports
Stocks of global semiconductor suppliers, e.g. ASML and Tokyo Electronicsjumped out on Thursday Report The United States may impose less stringent export restrictions than expected. According to reports, the United States is considering adding fewer Huawei suppliers to the export blacklist.
NewJeans wants to break away from Hybe sub-brand
Hybe, South Korea’s largest K-pop music agency, saw its share price plummet 6.97% on Friday, losing more than $423 million in market value. This was caused by the popular girl group NewJeans announcement The company will terminate its contract with Hybe’s sub-brand Ador due to an alleged breach of contract.
(PRO) Hedging possible tariffs
The EU has a 158 billion euro ($165.6 billion) trade surplus with the United States, which could draw attention to tariffs from President-elect Trump. To prepare for this possibility, investors should address “tariff risks” and seek defensive investments, said Davide Oneglia, director of European and global macro at TS Lombard.
bottom line
Bitcoin Cryptocurrencies have been tantalizingly close to the $100,000 level this week – peaking just under $1,000 – but cryptocurrencies are unable to reach this psychological peak. It fell back to a low of $90,702.27 on Tuesday before rising to around $96,150 today.
One of the reasons for its decline is that investors profited from Bitcoin’s all-time high price, increasing the supply of Bitcoin. “Long-term holders have begun to allocate significant amounts to Bitcoin on the recent rally,” Andre Dragosch, head of European research at crypto-focused asset manager Bitwise, wrote in a research note shared on Monday.
But there are more fundamental reasons why some strategists are unsure whether Bitcoin can muster enough power to hit the six-figure milestone.
David Morrison, senior market analyst at brokerage Trade Nation, said the $100,000 mark “feels like it has become a high hurdle, even a barrier” to further gains.
In fact, George Milling-Stanley, chief gold strategist at State Street Global Advisors, said Bitcoin’s recent surge may have given investors a false sense of security. “Bitcoin, pure and simple, is a returns game,” Millin-Stanley said, suggesting that investors are pouring into Bitcoin for capital gains rather than because they see value or use in the cryptocurrency.
The launch of a spot Bitcoin exchange-traded fund option last week may have something to do with this. Options allow investors to deploy less cash to bet on Bitcoin’s price movement rather than buying a portion of Bitcoin itself.
In fact, Mike Novogratz, CEO of Galaxy Digital, a long-time cryptocurrency investor, told CNBC that “the cryptocurrency community has reached the limit of leverage, so there will be a correction.”
In other words, the adjustment is not a permanent deflation. If only a fraction of U.S. President-elect Trump’s promises to the cryptocurrency industry come to fruition, the $100,000 price level may not be a ceiling but just another rung Bitcoin passes on during its celebratory rise.
—CNBC’s Tanaya Macheel, Ryan Browne, MacKenzie Sigalos and Krysta Escobar contributed to this report.
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