Bitcoin Battles to Reclaim $100K

CRYPTO
Bitcoin Battles to Reclaim $100K

Bitcoin’s Christmas surge brought hope to crypto investors as the digital currency briefly touched $99,000. However, the rally proved short-lived, with Bitcoin retreating to under $94,000—a sharp drop from its December 17 all-time high of $108,000. This pullback raises questions about whether the cryptocurrency is experiencing a temporary dip or a more significant correction.

Historically, Bitcoin has been known for dramatic cycles of booms and busts. Earlier peaks, such as $1,100 in 2013, $20,000 in 2017, and $69,000 in 2021, were followed by steep crashes exceeding 80%. The latest rally, however, has shown resilience thanks to factors like institutional adoption, Bitcoin ETF approvals, and political shifts favoring crypto in Washington, D.C., following pro-crypto leadership wins in November.

Despite broader adoption and Bitcoin’s growing role as “digital gold,” the market remains influenced by macroeconomic trends. While volatility persists, the currency’s stronger fundamentals suggest it is better equipped to weather downturns.

FINANCE
Buffett Bets Big on VeriSign

Warren Buffett’s Berkshire Hathaway has placed a significant bet on VeriSign, a once-dominant 1990s tech company, purchasing $74 million worth of shares despite a challenging year for its stock. VeriSign, known for its critical role in domain name registration and internet infrastructure, has seen its stock decline by 1.38% year-to-date, contrasting sharply with the broader tech surge in 2024, where the S&P 500 rose 25% and the Nasdaq climbed 30%.

Berkshire, which first invested in VeriSign over a decade ago, now owns more than 13 million shares valued at $2.6 billion, making it the company’s largest shareholder. The investment could stem from VeriSign’s robust profit margins, tied with Nvidia for fifth-best among S&P 500 companies. Despite a 19% drop since its 2021 peak, Buffett’s faith underscores the company’s enduring potential. This move aligns with Berkshire’s strategy of targeting high-margin businesses amid market highs and portfolio adjustments.

NATURAL GAS
Natural Gas Prices Soar 20%

Natural gas prices surged as much as 20% Monday, reaching a 52-week high, driven by forecasts of colder-than-average January temperatures across the U.S. East Coast. February futures rose 15% during the session after reports from The Weather Co. and Atmospheric G2 predicted below-average temperatures from Florida to Maine and parts of the Great Lakes.

While the East braces for a deep freeze, the West, including the Four Corners region, is forecasted to experience milder-than-usual weather. Colder temperatures in the East are expected to peak mid-month, with a potential stormy pattern bringing substantial snow and ice, according to AccuWeather.

The spike in natural gas prices reflects heightened demand for home heating and potential production disruptions due to "freeze offs," said John Kilduff of Again Capital. February futures hit $4.201 per thousand cubic feet, their highest since January 2023. Meanwhile, crude oil prices also rose modestly, with Brent crude at $74.39 per barrel.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.