Bitcoin Eases from Record, Wall Street Stocks Push to New High

22 Oct 2021 · 3rd Party Analysis

Vector Candle chart showing volatility and Bitcoin logo in the back, both over a candlechart background. Bitcoin Eases from Record, Wall Street Stocks Push to New High

WRITTEN BY ThorFX

In Summary:

  • The price of bitcoin moved lower on Thursday after setting a record high on Wednesday
  • Wall Street stocks edge higher as companies report blowout revenue and profit for Q3

Bitcoin Retreats but Still Up 6% on the Week

Bitcoin, the biggest cryptocurrency in the market, is trading slightly lower on Friday. After setting a new all-time high of $67,000 on Wednesday, the leading token has declined 5% to float near $63,000. Still, bitcoin is on track to finish the week in positive territory, up about 6% since Monday.

That said, this would be bitcoin’s fourth straight week of solid gains. Over these four weeks, the price of bitcoin has skyrocketed over 50% charged by the first Bitcoin ETF launch on Wall Street.

Adding to the growth of the cryptocurrency market, a second Bitcoin futures ETF will be released for trading today. The Valkyrie Bitcoin Fund, with a ticker BTF, will debut today on the Nasdaq exchange. The step comes just two days after the first Bitcoin futures fund was cheered by Wall Street.

PayPal Co-Founder Peter Thiel Says “Just Buy Bitcoin”

In signs of broader crypto adoption, bitcoin as the leading digital currency was hailed by Peter Thiel, PayPal co-founder. Mr. Thiel spoke at an event in Miami after bitcoin surged to a new record on Wednesday.

You’re supposed to just buy bitcoin“, Mr. Thiel, a tech billionaire, said. He also added, “I feel like I’ve been underinvested in it.” He continued by noting the record price of bitcoin is highly positive for the crypto market.

“I don’t know that you should put all your money into bitcoin at $60,000 a bitcoin right now,” he said. “But surely the fact that it is at $60,000 is an extremely hopeful sign. It’s the most honest market we have in the country.”

Wall Street Equities Gain, S&P500 Logs a Fresh Peak

Meanwhile, in stocks and currency pairs, Wall Street equities eked out a new record. In more detail, the S&P500 pushed higher by 0.3%, just enough to close at a fresh peak of $4,549.78. The broader market index was buoyed by positive earnings reports. For example, Tesla shares were a strong contributor to the rise. The EV maker gained 3.3% on the day and reached a record high of $900 a share. A day earlier, Tesla reported blowout revenue and profit for the third quarter.

On Friday, the stock market is looking to open fairly flat to slightly lower. Futures contracts tied to the Nasdaq dropped about half a percent. In addition, S&P500 futures and Dow Jones futures were trading little changed ahead of the Friday bell in New York.

On the currency market front, the US dollar is trading sideways against the euro. The EUR/USD pair hovered near 1.1640 in the early Friday hours. The USD/CHF, however, slipped below 0.9200 and is gravitating towards 0.9170.

What to Expect in the Markets?

Traders and investors expect the earnings reports to continue breaking records. That said, next week brings us quarterly financial results from Big Tech companies. Among them, Facebook delivers earnings on Monday.

On Tuesday, Microsoft and Google parent Alphabet post their third-quarter figures. On Thursday, Apple, the largest company by market cap, reports earnings. In addition, Amazon is also scheduled to announce its quarterly results on Friday.

Economic News Today (EST time)

The UK releases its PMI numbers at 04:30 am. The report could increase the volatility in the British sterling. Next, Canada follows with its Core retail sales data at 08:30 am. And Federal Reserve Chairman Jerome Powell will appear for a discussion at 11:00 am.

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