🤑 Markets on Record Breaking Run: Bitcoin $100K Nearly Here!

Good Morning!

The markets are giving us quite a show this week, and not the fun kind. Gold's making its biggest weekly leap in eight months, touching $2,687 as Russia ups the ante with concerning military moves. Meanwhile, Bitcoin's flirting with the $100K milestone – talk about a study in contrasts. The euro's having a particularly rough time, kissing $1.0469 and eyeing its 2023 low. Multiple headwinds are hitting the currency: U.S. tariff tensions, Germany's government shake-up, and French budget drama. Not exactly a recipe for confidence.

In today’s email:

• S&P500: Edging closer to historic annual gains 

• Bitcoin: $100k practically here 🚀

• MSTR: Takes a 25% nosedive 

• Gold: Surges back on geo-political concerns!

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THE BIG IDEA

Bitcoin approaches six-figure milestone as Trump's pro-crypto stance and shifting political landscape spark a remarkable rally, marking a historic moment for cryptocurrency adoption

Well, would you look at that – Bitcoin's knocking on the door of $100K, and it's not just another crypto fever dream. The OG cryptocurrency has been on an absolute tear, doubling in value this year and surging 40% since election night. Why? Let's connect these digital dots.

Picture this: Trump, our president-elect, isn't just warming up to crypto – he's practically rolling out the red carpet. His campaign promise to make America the "crypto capital of the planet" isn't just talk; he's even launched his own crypto venture, World Liberty Financial (though details are still as elusive as those last few satoshis needed for a whole bitcoin).

The institutional money's flowing in too

Since the election, we've seen over $4 billion pour into U.S.-listed Bitcoin ETFs. BlackRock's ETF options debut is turning heads, with bulls clearly running the show. As KuCoin's Alicia Kao points out, every single Bitcoin holder right now is sitting pretty in profit territory.

But it's not all moonshots and lambos. Let's keep it real – the industry's still got some explaining to do. The FTX debacle and SBF's fall from grace are fresh wounds, and concerns about crypto's environmental impact and its role in illicit activities ($24.2 billion worth last year alone) aren't going away.

Still, with Trump showing SEC Chair Gary Gensler the door and Elon Musk cheerleading from the sidelines, the regulatory clouds are starting to lift. As Joe McCann of Asymmetric puts it, "$100,000 is a foregone conclusion." Wells Fargo's John LaForge draws an interesting parallel to gold in the '70s – we're in price discovery mode, folks, and nobody knows just how high this rocket might go.

MARKETS AT A GLANCE

TOP NEWS

S&P 500 edges closer to historic annual gains, powered by tech sector strength and Trump-fueled market optimism

The S&P 500's having a banner year, up 24% and flirting with its all-time best annual performance. Need to beat 2013's 29.6% surge to claim the crown, and with Nvidia's stellar earnings and Trump's market-friendly policies lighting a fire under stocks, we might just get there. Fresh data shows investors poured a whopping $55.8B into U.S. stocks last week alone. The real MVP? Corporate profits, which jumped 8.8% in Q3.

European weather conditions and supply diversions drive Asian LNG prices to yearly high, though China's demand remains muted due to sufficient stockpiles

Asian LNG's hit $15.3/MMBtu, its 2024 peak, as Europe's cold snap and wind lull create a perfect storm for gas demand. While US shipments favor European ports, Asian buyers like India and China are sitting tight, finding the current prices too spicy to bite. China's well-stocked inventories mean they're unlikely to jump back in unless Jack Frost makes an unexpected appearance.

Currency market braces for turbulence as Trump's anticipated policies spark a surge in volatility bets and dramatic forecast revisions

The sleepy currency market's about to wake up, with traders placing their chips on a volatile 2025. After Trump's win, euro-dollar volatility metrics are jumping, and hedge funds are loading up on options that'll pay off if currencies start swinging. Bank of America reports a surge in long-term hedging products, while major banks slash their currency forecasts.

CRYPTO

US Bitcoin ETFs Exceed $100B, Challenge Largest BTC Holders

Spot Bitcoin ETFs, led by BlackRock’s iShares Bitcoin Trust, have amassed over $100 billion in assets, representing 5.4% of Bitcoin’s market value. In under a year, major players like Grayscale and Fidelity contributed to this growth. Bloomberg analysts note the ETFs’ rapid rise may soon surpass Satoshi Nakamoto's holdings, signaling a historic shift in Bitcoin market dynamics.

MicroStrategy completes massive zero-interest debt offering amid company stock volatility, signaling aggressive Bitcoin acquisition strategy despite market skepticism

MicroStrategy's playing 4D chess, completing a $3B zero-interest note offering while its stock took a 25% nosedive. Part of a bold $42B three-year plan to stack more Bitcoin, this could add 30,600 BTC to their already massive 331,200 BTC treasure chest. But not everyone's buying the hype – Citron Research just revealed they're shorting MSTR, calling it "overheated."

Solana Hits New All-Time High of $263 Amid Market Rally

Solana surged 11% in the last 24 hours to reach a record $263, fueled by a broader crypto rally after Donald Trump’s re-election. Increased activity in decentralized applications, memecoins, and institutional funding on the Solana network further boosted demand. With Ethereum facing fee challenges, Solana’s efficient ecosystem positions it as a strong competitor, reinforced by SEC discussions on spot Solana ETFs.

SEC Chair Gary Gensler announces complete departure from commission as Trump presidency approaches, marking potential shift in crypto regulatory landscape

The crypto industry's most prominent regulatory nemesis is heading for the exit. Gary Gensler won't just step down as SEC chair – he's leaving the commission entirely on January 20 when Trump takes office. His tenure saw aggressive crypto enforcement, multiple exchange lawsuits, and reluctant Bitcoin ETF approvals. The plot twist? His replacement could be one of several crypto-friendly candidates.

GOLD

China Discovers $83B Gold Reserves in Hunan

China uncovered $83 billion in gold reserves in Hunan, with over 300 tons found at depths exceeding 2,000 meters, and potential for 1,000+ tons deeper. Already the world’s top gold producer, China must import to meet domestic demand. Rising geopolitical tensions have fueled gold price surges, with Shanghai futures gaining 27.8% this year and nearing record highs.

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