Weekly SmartPills #54
Financial Markets
Bitcoin experienced a significant correction this week, falling below the $100,000 threshold. Bitcoin (BTC) is currently trading at $96,749, down -3.02% from the previous close. The intraday high reached $101,210, while the low dipped to $92,192. This decline is attributed to a wave of crypto market liquidations, with over $1 billion liquidated, signaling potential investor caution.
This week’s market overview reflects mixed results. The S&P 500 gained 1.1% on Friday, trimming its weekly loss to 2%, while the Nasdaq fell 1.8% overall despite a 1% recovery in the final session. Encouraging inflation data eased concerns over Federal Reserve rate hikes. Fed Chair Jerome Powell emphasized the resilience of the U.S. economy, maintaining investor confidence. The tech sector advanced with Nvidia and Microsoft leading gains, fueled by enthusiasm for AI. Nvidia closed at $134.70, up 3.28% on the day, while Microsoft held steady at $436.60. However, the VIX "fear gauge" signaled potential short-term volatility, keeping investors cautious.
Economics and Regulation
Italian PM Giorgia Meloni called for a pragmatic EU approach to Trump's proposed tariffs to prevent a trade war and focus on cooperation. As one of Trump's closest EU allies, she emphasized strengthening European competitiveness while maintaining open dialogue with the US.
UniCredit increased its stake in Commerzbank to 28%, fueling takeover speculation and drawing criticism from the German government, which called the move "uncoordinated and unfriendly." UniCredit emphasized its strategic approach, citing confidence in Commerzbank's value and the importance of a robust German banking sector.
Blockchain and Innovation
This week, Ripple launched its regulated stablecoin, RLUSD, on both the XRP Ledger and Ethereum networks. This development aims to provide a compliant and reliable stablecoin, expanding the cryptocurrency ecosystem and offering new opportunities for secure and stable transactions. Additionally, crypto exchange OKX announced the launch of its own Layer-2 ZK network, in collaboration with the Polygon Chain Development Kit (CDK). This initiative seeks to enhance blockchain scalability and transaction efficiency by reducing costs and increasing speed, contributing to the evolution of blockchain infrastructure.
Trends and Statistics
Italy's annual inflation rate rose to 1.3% in November, up from 0.9% in October.
The November inflation rate was slightly below the preliminary estimate of 1.4%.
Key driver of the increase: accelerated rise in regulated energy goods prices (from +3.9% to +7.4%).
Consumer price index declined by 0.1% in November on a month-to-month basis.
Food, household, and personal care items saw a price increase, rising from 2.0% to 2.3% year-on-year.