Precious! 

Bitcoin just broke the $100,000 barrier, and the crypto world is going absolutely ballistic. Let’s unpack this incredible surge and look at what else is happening in the markets this morning.

Bitcoin’s Triumphant $100,000+ Breakout:

It happened. Bitcoin (BTC-USD) has finally cracked the $100,000 mark, surging over 48% since the election and continuing its meteoric rise. The latest catalyst? President-elect Trump’s nomination of Paul Atkins, a known crypto-supporter, to head the SEC. This move is a game-changer, signaling a potentially significant shift in the regulatory landscape for crypto in the U.S. and globally.

The Bullish Narrative:

Many analysts see this as a monumental event for Bitcoin’s future, pointing towards several key drivers:

• Political Support: Trump’s pro-crypto stance is clearly a major factor. His plans for a Bitcoin strategic reserve, combined with Atkins’ appointment, are creating unprecedented optimism in the market.

• Mainstream Adoption: The success of Bitcoin ETFs, surpassing $100 BILLION in assets under management, signifies substantial institutional interest.

• Inflation Hedge: With inflation concerns lingering and fixed-income yields remaining unattractive, Bitcoin’s position as a store of value is strengthening.

• Limited Supply: Bitcoin’s inherent scarcity, with a fixed supply of 21 million coins, creates a powerful upward pressure on price as demand continues to increase.

The Bearish Counterpoint:

Of course, not everyone is buying into the hype. Several concerns remain:

• Speculative Bubble: Some analysts warn of a sentiment-driven bubble, fueled by irrational exuberance and lacking sound fundamentals.

• Decentralization Concerns: The concentration of Bitcoin holdings on exchanges and among miners raises questions about Bitcoin’s true decentralization and increased risk of manipulation.

• Lack of Real-World Use: Bitcoin’s limited use as a payment mechanism compared to its increased use as a speculation tool further questions its utility.

• Past Volatility: Bitcoin’s history of wild price swings is a cautionary tale. Will this rally end the same way previous ones have?

Other Market News:

While Bitcoin is dominating headlines, other significant events are unfolding:

• Dow Hits 45,000: The Dow Jones Industrial Average closed above 45,000 for the first time.

• Tragedy in NYC: The shooting death of UnitedHealthcare’s CEO has sent shockwaves through the healthcare industry.

• Corporate Earnings: Several companies reported earnings with mixed results: PVH, Synopsys, and SentinelOne fell on disappointing news, while Five Below and Dollar General gained.

• Geopolitical Tensions: The South Korean political crisis and President Yoon’s brief martial law declaration are creating instability in the region.

• French Political Upheaval: The collapse of the French government is raising further uncertainty in Europe.

Today’s Markets:

Asian markets were mixed overnight; European markets were slightly up at midday. US futures are currently pointing toward a slightly negative open and this remains unchanged as the opening bell approaches. The 10-year Treasury yield is slightly higher. Bitcoin itself is currently trading at or above $102,000, reflecting the continued enthusiasm.

Today’s Economic Calendar:

A reasonably busy day: Challenger Job-Cut Report, October Trade Balance, jobless claims, EIA Natural Gas Inventory report, Treasury Buyback Announcement, a Fed speech from Barkin, and Treasury Buyback Results this afternoon. The Fed’s balance sheet will also be released later in the day.