Bitcoin’s Volatility Returns

CRYPTO
Bitcoin’s Volatility Returns

Bitcoin recently surged past $67,000 for the first time in over two months, only to quickly pull back, showing that volatility has returned to the crypto market. With the U.S. elections approaching, this price action feels like just the beginning of a turbulent period. It’s a reminder of how sensitive Bitcoin is to macro events, especially when politics and market dynamics intersect.

In my view, we’re seeing a perfect storm of factors. Short squeezes, speculative moves, and new capital entering the market are all fueling these rapid price shifts. Bitcoin reached a high of $67,878, but it didn’t take long for it to fluctuate between gains and losses. This isn't surprising given that the market has been relatively flat since Bitcoin’s all-time high earlier this year.

The crypto Fear and Greed Index, which tracks sentiment, shows 2024 as one of the greediest years on record. So, a pullback is expected after such strong bullish sentiment. It’s all part of the natural ebb and flow of the market, but with more volatility likely on the horizon, Bitcoin's next moves could be just as unpredictable.

NOBEL
Economists Win Nobel

Daron Acemoglu, Simon Johnson, and James A. Robinson have won the 2024 Nobel Prize in Economics for their groundbreaking research on how societal institutions shape prosperity. Their studies reveal that the strength of a country’s institutions—such as rule of law, governance, and social systems—plays a crucial role in determining its economic growth.

The economists focused on institutions established during European colonialism, comparing regions where inclusive systems were implemented to those where extractive systems prevailed. They found that inclusive institutions, which fostered broad participation and fair governance, led to long-term prosperity. In contrast, extractive institutions, designed to exploit resources for the benefit of colonizers, resulted in lower economic growth.

This research has had significant implications for understanding economic development and policy. It highlights the importance of building strong, inclusive institutions to ensure sustainable growth. Acemoglu and Johnson, based at MIT, and Robinson, at the University of Chicago, continue to explore how these ideas apply in modern contexts, including the impact of digital technologies on the economy. Their work underscores the importance of democracy and governance in fostering economic progress.

LVMH
LVMH Sales Plunge Unexpectedly

LVMH sales declined unexpectedly at its largest unit for the first time since 2020, highlighting weaker Chinese demand for luxury goods. Organic revenue at the fashion and leather goods division, home to brands like Celine and Fendi, dropped 5% in the third quarter, missing analysts' expectations for a slight gain. This contrasts with the 9% growth seen a year earlier.

The slowdown stems from Chinese consumers cutting back on high-end purchases amid economic concerns and a property crisis. Organic sales in the region, including China, fell 16%, contributing to a 10% drop in LVMH's stock in New York.

SpaceX
Successful Super Heavy Booster Landing

SpaceX achieved a key milestone in its Starship testing, bringing it closer to crewed Moon and Mars missions. In a recent test, the Super Heavy booster successfully landed on its "Mechazilla" launch tower after launching Starship, marking the first successful attempt at this maneuver.

The 70-meter-tall booster, after detaching from Starship and burning most of its fuel, used 13 of its 33 engines for a controlled descent before landing on two metal arms at Boca Chica, Texas. This seven-minute process demonstrates progress towards making Starship a fully reusable space system.

Meme of the day
When my crypto makes me rich, i’m not telling anyone, but there will be signs

Word of the day
Exact

To exact something (such as payment or revenge) is to demand it and get it, especially by using force or threats. Exact is also used in phrases like "exact a terrible toll" and "exact a high/heavy price" to say that something has caused a lot of suffering, loss, etc.

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.