US equities got off to a strong start to the week, as bond yields dropped early from last week’s highs on Monday.
Two positive developments over the weekend have also boosted investors: The U.S. House on Saturday passed the Biden administration’s pandemic relief package, which cost $ 1.9 trillion, before the Food and Drug Administration issued an emergency permit to Johnson & Johnson’s JNJ,
COVID-19 Vaccine – The First Single Dose Available To Americans.
The price of bitcoin BTCUSD,
surged more than 5% to $ 47,691 on Monday, after it regained ground after the cryptocurrency’s worst week of the year last week after climbing to a record high of $ 58,332 last weekend.
In our call of the day, Citi analysts said bitcoin was at a “tipping point” between regular acceptance or a “speculative implosion.” But recent developments, including Tesla’s TSLA,
$ 1.5 billion investment and moves by PayPal PYPL,
Visa V,
and Mastercard MA,
to accept payments, be on the former.
The analysts, led by Citi GPS editor-in-chief Kathleen Boyle, noted that there were “a host of risks and obstacles” to the progress of the cryptocurrency.
“But weighing these potential hurdles against the odds leads to the conclusion that bitcoin is at a tipping point and that we could be at the start of a massive transformation from cryptocurrency to the mainstream,” they said.
The report added that bitcoin could eventually become “the currency of choice for international trade,” due to its global reach, neutrality, and lack of exposure to foreign exchange.
The biggest change in recent years has been the shift from a retail-focused company to “something that looks attractive to institutional investors,” the authors noted.
If recent efforts led to a central bank-backed digital currency, individuals and businesses would have digital wallets with a variety of cryptocurrencies, just like today, with checking, savings and treasury accounts, they said. “In this scenario, bitcoin could be optimally positioned to become the currency of choice for global trade,” she added.
However, obstacles in that path include upgrades to the market and the potential for the cryptocurrency space to move closer to the regulation and rules of traditional financial regulators, Citi noted.
The markets
US stocks posted significant gains in the beginning, with the Dow Jones Industrial Average DJIA,
2%, or 620 points, higher shortly after opening. The S&P 500 SPX,
and the Nasdaq Composite COMP,
were also on. European equities climbed and Asian markets rallied overnight on hopes for Biden’s US stimulus package and after last week’s sell-off.
The buzz
Dr. Anthony Fauci, the director of the National Institute of Allergy and Infectious Diseases, said he would have “no hesitation” in taking Johnson & Johnson’s COVID-19 vaccine, and that all three vaccines are available for Americans. ” very effective “.
Reddit Chief Executive Steve Huffman reiterated his praise for the WallStreetBets forum that has shaken Wall Street’s “ meme stocks ” in recent weeks. Huffman said the community was “uncovering a gap” between those who have access to the financial markets and those from outside.
The number of British homebuilders soared Monday, reports say the government will try to boost home ownership with a new mortgage guarantee.
Cruise operator Royal Caribbean Group said it has begun a $ 1.5 billion public share offering.
Ladbrokes owner Entain ENT,
said it has increased its bid for rival Swedish sports betting company Enlabs.
At the Golden Globe Awards, “The Crown”, “Schitt’s Creek” and “Nomadland” were among the big winners.
Random reads
Actor Ben Stiller’s baked trophy and other Golden Globes highlights.
Doctor appears in court video call while performing surgery.
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