On January 17th in Washington, one of the most anticipated events in the world of cryptocurrency is set to take place—the "Crypto Ball," coinciding with Donald Trump's inauguration. This event promises to be not just a social gathering but a significant milestone in the development of the cryptocurrency industry. Although the president-elect himself is unlikely to attend, the event is drawing significant attention from investors and blockchain enthusiasts alike.
Event Hosts and the Exclusive VIP Section
A highlight of the evening will be the VIP section, hosted by David Sacks. Appointed by Donald Trump as the "czar" of cryptocurrency and artificial intelligence, Sacks is known for his progressive views and deep understanding of technological trends. His participation underscores the event's significance and its forward-looking orientation.
The VIP section promises to be truly exclusive, with ticket prices starting at $100,000. For those willing to invest in a unique experience, a package of four tickets is available for $1 million, which includes a dinner with Trump himself. This offering is sure to attract some of the most influential figures in business and politics.
A fresh chapter of trade tensions has emerged on the political and economic stage between the United States and Canada. Following statements by former President Donald Trump threatening a 25% tariff on goods from Canada and Mexico, Canada issued a strong response. The Canadian ambassador warned that such actions would not go unanswered, promising retaliatory "eye for an eye" measures that could impact U.S. trade interests.
This situation has increased tensions between the two largest economies of North America, raising concerns among market participants, exporters, importers, and political analysts alike. Many are left wondering how this could affect global economic dynamics.
The Nature of the Conflict
Financial markets are on edge as they await one of the most volatile trading days since March 2023. The upcoming release of U.S. inflation data (Consumer Price Index, CPI) has captured the attention of traders and analysts worldwide. Consumer price data could be a decisive factor in shaping the Federal Reserve's future monetary policy and market sentiment.
In anticipation of this event, the market is poised for significant swings: options data suggest that the $^GSPC S&P 500 index may experience fluctuations within +/-1% during tomorrow’s session. Additionally, the kickoff of the fourth-quarter earnings season adds tension to the market atmosphere, with major financial giants like $JPM JPMorgan Chase & Co., $C Citigroup Inc., and $BLK BlackRock Inc. set to announce their results first.
Impact of CPI Data on Markets
The Consumer Price Index (CPI) is one of the primary indicators of inflation, closely monitored by analysts and policymakers. In an environment characterized by high inflation, the Federal Reserve faces a dilemma: either continue raising interest rates to curb inflation or risk slowing economic growth. Any deviation of actual CPI data from expectations can trigger significant volatility in financial markets.
The global economic climate has prompted many nations to reassess their currency management strategies. China, under pressure from external economic forces, has announced plans to take extensive action to slow the depreciation of the $USDCNY . This decision comes in response to several challenges, including US tariffs and the strengthening of the dollar.
Causes of Pressure on the Yuan
The weakening of the yuan is primarily linked to the imposition of US tariffs and the rising value of the US dollar. For China, the world’s second-largest economy, a stable currency is of strategic importance. The strengthening of the dollar puts additional pressure on the yuan, reducing its competitiveness in global markets.
In recent years, the cryptocurrency market has been a hotbed of significant changes and announcements. One newsworthy development is the statement from the new president of TON Foundation about their plans to enter the U.S. market and the future prospects for $TONUSD . According to him, the United States could soon become a global hub for the crypto industry.
This statement is significant not only for the TON project but also for the entire cryptocurrency industry, raising numerous questions about potential economic transformations in the U.S. under certain conditions.
TON Foundation's Plans in the United States
Global economic trends are increasingly influencing U.S. companies, particularly those in $^SPX. Approximately 41% of their revenues come from international markets, making these firms highly vulnerable to economic shifts outside the United States. The threat of a recession in Europe and the ongoing slowdown of the Chinese economy have emerged as significant risks for American corporations.
Dependence on Global Markets
U.S. companies have long relied on international markets for revenue growth, with Europe and China being the two largest regions contributing significantly to profits. However, current economic challenges in these regions could severely impact consumer purchasing power and lead to reduced export flows.
The slowdown in China is a growing concern for investors and analysts. The country is not only a key market for many American products and services, but also an integral partner in global supply chains. A slowdown in China's growth could lead to lower demand for products from S&P 500 companies.
In recent weeks, the global community has turned its attention back to TikTok, the wildly popular short-video platform, as it faces new challenges in Western markets. Chinese government officials are actively discussing the company’s future in the U.S., and one surprising possibility has surfaced: a proposed deal with Elon Musk. This alternative route may open new opportunities for TikTok if realized.
Context of the Situation
TikTok, one of the world’s most downloaded social media platforms, has repeatedly faced challenges in Western countries, particularly in the United States. The primary reason driving bans and restrictions has been concerns over data security and user privacy. Given Elon Musk’s vested interest in cutting-edge technology and his immense influence across industries, the idea of his involvement in TikTok’s future seems not only intriguing but potentially transformative.
China’s economy, one of the largest in the world, remains under close scrutiny from economists, analysts, and investors. Projections for the coming years indicate that the country’s economic growth is set to slow down, despite ongoing stimulus measures and government efforts to maintain stability. According to a recent Reuters survey, China’s GDP growth is expected to decelerate to 4.5% in 2025 and further to 4.2% in 2026. Experts attribute this slowdown to a combination of factors, including rising trade tensions with the United States and the possible implementation of new tariffs.
The Impact of Policy Decisions on China's Economic Growth
The Reuters survey of economists predicts that China’s economy will grow by 4.9% in 2024, aligning closely with the government’s official target of around 5%. This growth is largely attributed to a combination of stimulus policies enacted by Chinese authorities and robust export demand. However, despite the relatively optimistic outlook for the near term, several challenges loom on the horizon that could undermine China’s economic resilience.
For the first time since mid-November 2024, Bitcoin's price has dipped below the psychologically significant $90,000 mark. This decline coincides with a broader drop in cryptocurrency values, sparking discussions among experts about the reasons behind this retreat and the market's future prospects. The primary cause of this sharp decline is attributed to changing macroeconomic expectations in traditional financial markets. But is this merely a temporary phenomenon, or does it signal deeper shifts within the industry?
What Happened: Key Facts About Bitcoin's Decline
As of the evening of January 13, 2024 (7:10 PM MSK), Bitcoin's price settled around $91,700, having dropped to a low of $89,200 during the day. Just a few weeks earlier, on January 7, BTC had reached a local peak of $102,700, only to lose 9% of its value thereafter. From its all-time high on December 17, 2023, the cryptocurrency has fallen by a substantial 15%.
Notably, this decline began after a robust growth of over 10% in the first week of January. Since the start of the year, Bitcoin has already lost about 2%, effectively erasing the gains of early 2024. This price behavior is driven by a combination of technical and fundamental factors, which deserve closer examination.
Tether, known as one of the leading stablecoin issuers, has announced its decision to relocate its headquarters and subsidiaries to El Salvador. This move follows the acquisition of a license for providing digital asset-related services, highlighting Tether's ambition to solidify its stance within the rapidly evolving cryptocurrency landscape.
Tether and Its Role in the Cryptocurrency Market
Managing assets worth over $137 billion, Tether stands as a key player in the crypto market. Originally registered in the British Virgin Islands, Tether has been actively collaborating with the government of El Salvador, assisting the country in becoming a hub for Bitcoin and crypto enterprises. This partnership gained significance after El Salvador became the first nation to adopt Bitcoin as legal tender.
ServiceTitan Inc, a software developer for the trade industry, reported its third quarter 2024 results, showing revenue growth and raising its full-year forecasts. This event captured the attention of investors, leading to a 2.2% rise in the company's stock prices during after-hours trading.
Third Quarter 2024 Results
ServiceTitan announced a revenue of $199.3 million for the third quarter of 2024, ending on October 31. This marks a 24.6% increase compared to the same period last year, when revenue stood at $160 million. The impressive revenue growth once again confirms the success of the company's strategy to expand its presence in the service software market.
Despite the revenue increase, the adjusted loss per share rose to $1.74, which is worse than the result for the same period in 2023, when the loss was $1.53. This outcome, despite the positive revenue trend, raises questions about the business's profitability and its prospects of achieving profit.
On Monday, the US stock market concluded the session with mixed results. This was largely due to strong performances in the materials, oil and gas, and healthcare sectors. Conversely, the utilities, technology, and consumer services sectors exerted pressure, creating a diverse dynamic across the exchanges.
Index Performance
By the close of trading, the Dow Jones index had increased by 0.85%, indicating investor optimism regarding the stability of the US economy. The S&P 500 index also showed a positive trend, rising by 0.15%. However, technology remained subdued: the NASDAQ Composite index fell by 0.39%, reflecting market players' caution towards high-tech companies.
