Six-month implied volatility is higher for Ethereum than it is for Bitcoin. Given the affordability of ETH at 1,200 compared with BTC’s 40,000, it suggests investors may make larger bets on altcoins such as ETH over the coming weeks.
Another day, another milestone for Bitcoin. Just one day after conquering $36k, bulls drove prices another 10.7% overnight and tested $40k.
Following a clean break of 36,500 as outlined in yesterday’s report, bitcoin (BTCUSD) prices pulled back and confirmed the breakout level as support, before rising swiftly to $40k. Yet it didn’t stay there too long, as an elongated bearish outside and engulfing candle saw prices crash back to 36,500 support within the hour.
Yet it was Ripple’s XRP (XRPUSD) which stole the show with a 34.4% rebound. Now trading around 0.3340, XRP has effectively doubled in price since December’s multi-year low, which was achieved thanks to SEC’s lawsuit of Ripple Inc. But as we cannot say for sure if SEC’s lawsuit is fully priced in. And as XRP remains well beneath last year’s highs, its rally could prove short lived.
Six-month implied volatility is higher for Ethereum (ETHUSD) than it is for Bitcoin. Given the affordability of ETH at 1,200 compared with BTC’s 40,000, it suggests investors may make larger bets on altcoins such as ETH over the coming weeks.
US indices touched fresh record highs following stronger economic data and confirmation of the blue wave. Despite hundreds of Trump protestors storming capitol hill, which resulted in congress being evacuated and four people being killed, Mike Pence officially certified the results in the early hours to cement Joe Biden’s win. This meant out-of-hours trading was as turbulent as the headlines, yet as soon as Wall Street opened, stocks went flying out the gate and indices hit new highs. The Nasdaq 100 (USTEC) was the largest performer at 2.5% higher, followed by S&P 500 (US500) at 0.7% and the Dow Jones (US30) at 0.2%. European equities also closed in the black in anticipation of a strong session from Wall Street.
The US dollar index touched a fresh 2.5 year low and the session closed with a bullish hammer. Yet bearish momentum does appear to be waning. Whilst this does not provide a strong conviction for a strong rebound, it does suggest bears should err on the side of caution given some of the stronger moves we have seen on pairs such as AUD/USD and NZD/USD.
Trump, Accused of Inciting Violence, Faces Calls for Impeachment
But if Trump really has burned his bridges with his fellow Republicans, perhaps the Senate could also vote to impeach him this time around. And this may be shrewd move, assuming they don’t want him to run for office in future…
Republicans are distancing themselves from President Trump, who has been accused of inciting violence and spearheading the protest. Just an hour before protestors marched to Capitol Hill, Trump addressed supporters in Washington DC suggested “we” march down Pennyslvania Avenue to “try and give our Republicans” the kind of pride and boldness they need to “take our country back”.
And the fallout from yesterday’s protest at Capitol Hill appears to be an ongoing matter. A slew of resignations from Republicans has already started, with some sources saying they expect more resignations to come over the next 12-48 hours.
Will They Impeach Trump?
Democrat House Speaker Nancy Pelosi has urged Vice-President Mike Pence to remove Donald Trump from office by invoking the 25th Amendment. Should he refuse, she is prepared to impeach Trump. Again.
On the face of it, it may have limited impact given he is leaving office anyway. When the Democrat House impeached him previously it was seen as a symbolic move, given the Republican Senate were never going to allow it. But if Trump really has burned his bridges with his fellow Republicans, perhaps the Senate could also vote to impeach him this time around. And this may be shrewd move, assuming they don’t want him to run for office in future, as he will be unable to run for office if both the House and Senate impeach him this time around. And given he has clearly fractured the Republican party’s base, if Trump is allowed to run he could effectively dilute the Republican base which could give Democrats and advantage at the next election.
US Service Sector Follows Manufacturing’s Lead
…with both the manufacturing and services sectors expanding, it points towards a broader recovery for the US economy. Add the vaccine rollout into the mix and 2021 isn’t looking so bad all of a sudden.
On the data front, the ISM non-manufacturing (services) index expanded at its fastest pace since September and hovers near levels it sat prior to the pandemic. However, whilst the headline index rose to 57.2 in December from 55.9 prior, and the employment sub index was at its lowest level since August due to the rising case in COVID-19 infections. So there’s certainly room for improvements.
Yet with both the manufacturing and services sectors expanding, it points towards a broader recovery for the US economy. Add the vaccine rollout into the mix and 2021 isn’t looking so bad all of a sudden. From an economic perspective, at least.