This week ahead || Apr 1st - Apr 5th 2024
Here's your news for the week ahead.
Bitcoin Sinks on Ebbing Fed Rate-Cut Bets and Cooling ETF Demand
The digital asset market experienced a decline, with Bitcoin falling up to 5.3% before partially recovering to $66,735. This drop follows a broader trend as investors temper expectations of Fed interest-rate cuts due to lingering US price pressures, leading to higher Treasury yields and a stronger dollar. The shift in sentiment regarding the Fed has affected various sectors, including cryptocurrencies, with meme-based tokens like Pepe and dogwifhat experiencing notable declines. Bitcoin, which peaked at $73,798 in mid-March, has seen a 10% decrease since then. Additionally, the daily inflows into US spot-Bitcoin ETFs have slowed, contributing to the digital asset's downturn. Despite the upcoming halving event, where the supply of new Bitcoin tokens is set to decrease, some traders believe that further gains may be challenging given the significant price appreciation of Bitcoin since the beginning of 2023.
Investor in Trump SPAC to Change Plea in Insider Trading Case
US District Judge Lewis J. Liman has scheduled a hearing later in the week regarding a plea change for Michael Shvartsman, the chief executive officer of Rocket One Capital LLC, who is accused, along with his brother Gerald and Bruce Garelick, of trading ahead on confidential information about potential targets of a SPAC, including Trump Media & Technology Group Corp. The trial for Shvartsman and the other defendants is set to begin on April 29. The government alleges that they made more than $22 million from trades made prior to the announcement of Digital World Acquisition Corp.'s merger with Trump Media. The defendants were arrested in June and charged with securities fraud, conspiracy, and other counts, facing up to 25 years in prison if found guilty.
Cathie Wood's ARK makes major moves in Tesla stock, sells Robinhood
On April 1st, 2024, Cathie Wood's ARK Investment Management made notable trades in the ETF space. The firm increased its position in Tesla Inc. (TSLA) with a substantial purchase, reinforcing its bullish stance on the electric vehicle giant. Conversely, ARK sold a significant number of shares in Twilio Inc. (TWLO), signaling a strategic shift away from the cloud communications platform. Another notable sale involved reducing stakes in Robinhood Markets Inc. (HOOD). ARK also made purchases in companies like Datadog Inc. (DDOG) and Kratos Defense & Security (KTOS), reflecting its interest in innovative tech and defense sectors. In biotech, ARK acquired shares in Pacific Biosciences of California (PACB) and Personalis Inc. (PSNL), among others. Additionally, ARK increased holdings in Pinterest Inc. (PINS), Roblox Corp, Roku Inc., and Recursion Pharmaceuticals, demonstrating confidence in their growth potential. ARK's trading patterns continue to attract attention and influence investor sentiment in the dynamic ETF landscape.
Asian shares up, dollar firms as rate cut wagers fade
On Tuesday, Asian stocks advanced while the dollar strengthened, leading to the yen hovering near 152-per-dollar levels, prompting concerns about potential intervention from Japanese authorities. This shift comes as expectations for Federal Reserve interest rate cuts diminish following robust U.S. manufacturing data. The MSCI's broadest index of Asia-Pacific shares outside Japan climbed 0.65%, with Japan's Nikkei surpassing the 40,000 points mark. The yen stood at 151.715 per dollar, with traders closely monitoring for signs of intervention from Japan. Chinese stocks showed mixed performance, while Hong Kong's Hang Seng Index surged over 2% after reopening from a public holiday. Meanwhile, U.S. Treasury yields rose, impacting the dollar's strength. Despite easing slightly, yields lifted the dollar against major currencies. Markets are now assessing the likelihood of Fed rate cuts, with futures suggesting reduced expectations compared to the previous week. In commodities, crude oil prices edged higher on improved demand and tensions in the Middle East, while spot gold dipped slightly after reaching an all-time high on Monday.
