Wall Street Stocks Mostly Lower, Bitcoin Jumps Above $46,000
10 Aug 2021 · 3rd Party Analysis
- Equities on Monday traded rather muted, futures on Tuesday hover flat
- Bitcoin spikes to levels above $46,000 as the crypto market continue to recover
The blue-chip Dow Jones Industrial Average and the broad-based S&P500 retreated from record highs on Monday as slipping oil prices and increasing Delta virus cases suggested the coronavirus pandemic might overshadow the expansion of the global economy.
The Dow Jones tumbled 106.66 points, or 0.30%, to 35,101.85. The S&P500 dropped 4.17 points, or 0.09%, to 4,432.35. The tech-driven Nasdaq Composite eked out a relatively small gain of 24.42 points, or 0.16%, to 14,860.18.
The three major benchmark indexes hover near records set last week. Both The S&P500 and the Dow Jones ended Friday at new all-time highs, boosted by July’s strong employment report. The Labor Department on Friday said the US job market has added 943,000 new positions, the most significant number in 11 months. While the Nasdaq slipped after the report, the index notched a record closing high earlier in the week.
Renewed pandemic jitters this week are making investors nervous. Official data released earlier today showed the US reported 235,099 new Covid-19 cases for Monday. The figure marked the highest daily level since Jan 14 when the US was coming down from its pandemic peak.
Crypto Gains Extend Into The Week
Meanwhile, cryptocurrencies on Monday extended their weekend gains. Bitcoin reached a session high of $46,200, surpassing the $46,000 milestone for the first time since the major market meltdown that started mid-May and lasted for about two months.
The leading digital currency ended Monday higher by 3.6%, as investors were able to sustain another day in the green. Today, the price of bitcoin is trading to the upside, currently at $46,100 per coin.
Since July 21, the entire cryptocurrency market has been on a tear, adding more than 50% to its valuation, which now sits at $1.9tn. Bitcoin, for that period, has appreciated by 55% with only five negative sessions out of 21. Bitcoin is now less than 30% away from its all-time high of $64,800 set April 14.
The upbeat sentiment over the crypto industry is currently overshadowed by contentious legislation proposed by US Senators. A $1tn infrastructure package approved by both Democrats and Republicans in the Senate is at its final steps before being approved, but a sticking point related to cryptocurrencies is extending the debate.
An amendment, now largely known as the Portman-Warner amendment, is looking to raise about $28bn from taxing gains of proof of stake validators, software developers, and decentralized exchanges.
The harsh requirement was opposed by large crypto circles and devoted cryptocurrency advocates. Some of those who would want to see the proposal dropped include Tesla CEO Elon Musk and Coinbase CEO Brian Armstrong. In a Twitter discussion, they both argue against the passing of contentious legislation. A final vote on the bill is expected to happen today.
In Europe, markets on Tuesday fare in positive territory as investors are maintaining the optimistic outlook for European stocks. The pan-continental Stoxx 600 Europe is positive by 1 point during the regular session, marking a new intraday record as the index approached the 472.00-landmark.
European bourses continue their ascend for the week as Monday gains for the broad-based Stoxx 600 lifted it to a record closing level of 470.68.