Macroeconomics and financial markets
In the US NY stock market on the 19th, the Dow closed at $252 (0.8%) lower than the previous day.
As the number of US new unemployment insurance applications fell below market expectations and showed the strength of employment, the Fed (US Federal Reserve System) raised interest rates for a long period of time and the risk of economic recession became more cautious.
Relation:NY Dow falls for 3 days in a row, beware of continuing interest rate hikes | 20th Financial Tankan
Virtual currency market
In the crypto asset (virtual currency) market, Bitcoin rose 2.00% from the previous day to $21,175.
It did not keep up with the decline of the US stock index and rose.
According to Arcane Research’s weekly report, the correlation between the US stock market and Bitcoin (BTC) has been declining for some time.
The 30-day correlation index fell to the lowest “0.29” since December 2009.
According to the analysis, the link was confirmed during US time (22:00 to 10:00 the next day, daylight saving time 21:00 to 9:00 the next day), but from November 27, 2010 to January 15, 2011 In the cumulative return of BTC in 2018, Asian hours were less correlated and there were many rises in BTC.
The US time zone increased by 10%, while the Asian time zone increased by 16%.
Although the US time zone is heavily influenced by the US stock index, which fluctuates greatly due to the announcement of economic indicators, it suggests that it is becoming independent in other time zones.
Arcane Research reported last January that “US time is becoming more important.” At the time, 43% of all bitcoin trading volume was recorded during hours when the U.S. stock market was open.
Relation:Arcane Research points out the importance of ‘US time’ in Bitcoin trading
Arcane Research cites the following as the main reasons for the recent drop in correlation:
- Significant decrease in BTC holdings of listed companies such as Tesla
- Decrease in mining and selling of BTC by miners
- withdrawal of institutional investors
From January 22nd, the Chinese New Year (Spring Festival) will begin, mainly in Greater China.
The culture of celebrating the Lunar New Year is held in South Korea, Taiwan, Hong Kong, Singapore, Thailand, Malaysia, and other regions including Southeast Asia, so the financial market is thin, and the renminbi (CNY) is used to cover travel expenses and gifts. and the won (KRW) and other legal tenders will increase.
However, compared to a few years ago, the presence of Greater China in the virtual currency market has declined significantly due to the impact of the Chinese government’s total ban, and the impact is minor.
Among individual stocks in the alt market, FTX’s native token, FTT, soared 21.6% from the previous day.
FTX CEO John J. Ray told the WSJ on Wednesday, “All options are on the table besides liquidating assets. We have launched a task force to investigate the possibility of resuming services.”
Relation:FTT Soars FTX Considers Reopening of Cryptocurrency Exchanges
The new CEO John, who took over management from former CEO Sam Bankman Freed, is a leading figure in “corporate revitalization” such as taking the lead in the 2001 Enron scandal, which went bankrupt due to the largest scale fraudulent accounting scandal in US history. known as Attention will be paid to how Mr. Ray will respond to the huge debt and large number of creditors in this FTX bankruptcy.
The US SEC (Securities and Exchange Commission) indicted Sam on Wednesday for misappropriating $1.8 billion worth of client funds.
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