Weekly SmartPills #56
Financial Markets
Cryptocurrency Market
In the ever-dynamic world of cryptocurrencies, Bitcoin recently made headlines by surpassing the $100,000 milestone, hitting an all-time high of $108,364 on December 17. However, it has since corrected to around $94,171, reflecting a weekly dip of 1.28%. Ethereum, on the other hand, has shown consistent growth throughout the year. As of December 27, ETH is trading at approximately $3,343.82, marking a slight daily increase of 0.72%. Notably, today's expiration of Bitcoin and Ethereum options, valued at over $18 billion, could stir up market volatility
Traditional Financial Markets
Shifting focus to traditional financial markets, the U.S. saw a downturn in major indices. The Dow Jones dropped by 1.1%, the S&P 500 by 1.48%, and the Nasdaq by 2.01%, driven largely by a slump in tech stocks like NVIDIA (-2.64%) and Tesla (-4.47%). Meanwhile, in Italy, the FTSE MIB index displayed resilience, climbing 1.25% to 34,160 points, with notable performances from STM (+2.2%), Moncler (+2.1%), and Stellantis (+2.1%).
Economics and Regulation
European gas prices surged after Russia halted gas flows to Europe via Ukraine on January 1, 2025, reaching their highest level since October 2023. The EU's gas storage is currently at 75% capacity, but cold weather and a 5% loss in imports have raised concerns about faster depletion. Central European countries, particularly Hungary and Slovakia, are the most vulnerable due to their reliance on the Ukrainian transit route, though alternative gas sources are being explored. While the EU expects no immediate energy crisis, the high prices and potential costs for refilling storage could negatively affect competitiveness and household expenses.
Spain's inflation reached 2.8% in December, higher than the 2.6% forecast, driven by rising fuel prices and increased leisure costs. Core inflation also rose to 2.6%, indicating ongoing price pressures, particularly in services. The main driver was a rebound in fuel prices after last year's declines. Looking ahead, Spain's 2025 inflation depends on oil prices, with forecasts ranging from 1.9% to 2.5%. Despite inflation concerns, Spain’s economic outlook is positive, with improving household purchasing power. Markets showed little reaction, though Spain’s IBEX 35 has seen strong growth over the past two years.
Blockchain and Innovation
This week, we're thrilled to highlight QuantumChain (QTC), a pioneering blockchain project that marries quantum computing with traditional blockchain frameworks. QuantumChain is designed to revolutionize security and transaction speeds through the use of quantum algorithms, enhancing both encryption and processing. Its hybrid consensus model, combining Proof of Stake (PoS) with quantum-resistant cryptography, ensures robust security in the face of emerging quantum computing capabilities. The QTC token will be crucial for governance and validating transactions, setting the stage for widespread adoption of this cuttingedge technology. No and how it aims to future-proof blockchain ecosystems.
Trends and Statistics
How many months of salary do you need to buy a house in Europe?
Denmark is the most affordable European country for buying a home, with 114 months of salary needed for a 100-square-metre property.
Ireland and Sweden follow, requiring 123 and 129 months of salary, respectively.
The Czech Republic and Slovakia are the least affordable, with Slovakia needing 297 months (almost 25 years) to buy a home.
South Africa is the most affordable globally, requiring 71 months of salary to buy a house.
Nepal and Turkey are the least affordable worldwide, needing 684 and 631 months, respectively.