In this week's economic overview, we witnessed the landmark launch of U.S. spot Bitcoin ETFs, attracting over $4.6 billion in trading volume on their first day. The Nvidia Corporation's stock soared to new heights, driven by its AI sector dominance. Additionally, oil prices experienced a significant rise amidst geopolitical tensions involving a US-led coalition and Yemen, impacting global markets.
For a comprehensive understanding of these dynamic market movements, explore further details in our review.
US bitcoin ETFs see $4.6B in volume in first day of trading
This week, the U.S. saw the debut of spot Bitcoin ETFs, with more than $4.6 billion in trading volume on their first day. Grayscale Bitcoin Trust (GBTC) led the market, followed by significant contributions from Blackrock's iShares Bitcoin Trust (IBIT) and Fidelity's Wise Origin Bitcoin fund (FBTC).
These three entities combined accounted for about 87% of the day's total trading volume. Additionally, there are now 10 different spot bitcoin ETF products approved in the U.S., with Hashdex's Bitcoin ETF (DEFI) planning to convert from a bitcoin futures ETF to a spot product.
Trading involves significant risk of loss.
Nvidia hits new all-time high
Nvidia Corporation's stock price ($NVDA) reached a record high of $543, representing an impressive 66,180% growth since its initial public offering in 1999. The company's shares have seen a significant increase, particularly in the early months of 2024, climbing by 8.46%, which surpasses the performance of the $SPX500.
This surge is largely attributed to Nvidia's leading position in the artificial intelligence (AI) sector, with its chips being crucial for various AI technologies. Furthermore, Nvidia's financial stability is clearly demonstrated in its third-quarter earnings report, which revealed a 200% rise in sales and a dramatic increase in net profits, jumping from $700,000 to $9.2 billion year-over-year.
Trading involves significant risk of loss.
Oil prices rise amid US-led coalition conflict in Yemen
Oil prices have escalated due to the ongoing conflict in the Red Sea region involving a US-led coalition and Yemen. This development, alongside slightly higher-than-expected U.S. inflation data, has led to subdued reactions in Asian shares. Expectations of early and aggressive rate cuts in the U.S. and Europe continue, partly influenced by the European Central Bank's dovish stance.
Brent futures have increased by 2.0% to $79.00 a barrel, and U.S. West Texas Intermediate (WTI) crude is up by 2.1% to $73.55.
Trading involves significant risk of loss.
US inflation data fails to lift the US Dollar
The US Dollar outperformed its peers with the initial reaction to December inflation figures on Thursday but failed to preserve its strength as US Treasury bond yields turned south later in the American session. Although markets stay relatively quiet early Friday, Producer Price Index (PPI) data for December from the US could ramp up volatility ahead of the weekend.
Following some volatile action in the American session, EUR/USD settled above 1.0950.
Trading involves significant risk of loss.
This concludes our weekly recap. Have a great weekend and see you next week! 👋
