Wall Street Futures Up, Bitcoin Hits 3-Month High Above $50,000
23 Aug 2021 · 3rd Party Analysis
- Futures contracts hover in the green with Dow futures up about 140 points in pre-market trading
- Bitcoin surges above $50,000 for the first time in three months, up over 70% in 33 days
Stock futures were pointing to a positive open in overnight activity on Monday after choppy trading narrated last week’s stock movements. Several key events weighed on major benchmarks, including Fed tapering signals, and led to a losing week for the Dow, the S&P500, and the Nasdaq Composite.
Despite the setback in the previous week, futures on the Dow Jones Industrial Average moved higher by roughly 140 points. S&P500 futures jumped about 15 points, and Nasdaq futures were also in positive territory, higher by almost 0.40%, or over 50 points.
Major averages on Wall Street prepare to kickstart the week in the green as investors price in the latest update from the Federal Reserve. Last week, the US central bank said it could pull back some of its monetary stimuli by the end of the year.
The looming prospects for reducing the $120bn monthly bond-buying weighed on the growth outlook for stocks, particularly those directly tied to the economy. Investors’ worries over a potential slowdown in the economic expansion are reflected mostly in the performance of the Dow Jones Industrial Average.
The 30-stock index declined 1.1% last week despite a 0.65% jump on Friday. Fears that reducing the monetary support would hamper growth also dented the performance of the S&P500, which closed down 0.6% last week, breaking a two-week winning streak. The tech-heavy Nasdaq Composite also drifted lower and ended the week down by 0.7% after a 1.19% gain on Friday.
Confidence Reigns Among Crypto Enthusiasts
As US investors are waiting to start exchanging stocks ahead of the opening bell in New York today, bitcoin is trading at a three-month high over the $50,000 milestone.
Bitcoin pushed above $50,000 before the close of Sunday trading. The digital currency peaked at $50,400 early on Monday and is currently gravitating near $50,300, up almost 5% today.
The leading cryptocurrency has been in a relatively steady upside swing for a little more than a month. On July 20, the orange coin dropped to its lowest level since January and erased all its 2021 gains. Afterward, the crypto token has sprinted over 70%, gaining more about $20,000, at the same time adding nearly $400bn to its market capitalization.
Bitcoin hit an all-time high of nearly $65,000 in mid-April. Shortly after, the flagship coin sold off by more than 50% after China announced it will crack down on crypto mining and trading operations.
Coupled with environmental concerns, the price of bitcoin remained pressured near $40,000 for about three months. Presently, bitcoin’s price hovers roughly 20% away from its record-high.
Crypto enthusiasts remain confident the rally will continue now that the digital asset market enjoys support from major banks, corporations, and institutional investors.
In Europe today, major stock indexes float mostly sideways to slightly positive. The region-wide Stoxx 600 is modestly in the green after it ended last week lower by 1.5%, logging its worst weekly performance in six months.