BTC stalls at $60k, Tesla could benefit from EV trucking boom, GameStop earnings due
By John Shepard
10:41, 22 March 2021
Bitcoin (BTC) has stalled at the $60,000 level this week with a bout of selling on Sunday which saw the coin trading at $56,000.
In the meantime, stock markets are beginning to fret about the rise in long-term bond yields again, and this brings the risk of a correction after the Dow Jones Index (US30) recently hit 33,000.
Swiss bank UBS sees potential for the $1.5trn trucking market, as EV makers expand their product lines.
Bitcoin seeing support under $60,000 but markets bring risk
Bitcoin is trading at $57,580 on Monday after giving up recent gains to a new high above $60,000. The week ahead is more about market risk as the US economy sees the release of GDP on Thursday and inflation on Friday. There is already fear of stocks correcting as bond yields rise after the Federal Reserve refused to make any aggressive statements on the current rise.
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Fed plays chicken, UBS sees potential in $1.5trn market, GME releases earnings
The Federal Reserve is now locked in a game of chicken with investors, as policymakers are content to sit on their hands and shrug off the market fears over inflation. Despite this, the US 10-Year Treasury Rate, which is the benchmark for global risk markets, hit 1.75 per cent this week.
The ECB recently dug their heels in over the rise in euro yields, with the bank fearing a rise in borrowing costs for companies and the government at a fragile time in the bloc’s recovery. We may end seeing a short-term wobble in stocks before the banks intervene to lower the bond yields.
Swiss bank UBS has released research which sees disruption in the $1.5trn trucking sector as vehicles move towards electric. The bank has tipped Tesla (TSLA) and Volkswagen (VOW3) to be the top two in electric cars with 1.2 million in sales next year. The bank also sees future gains in companies that produce electric trucks, and the associated battery and charging technology.
GameStop (GME) will be back in the headlines this week as the company releases Q4 earnings after the market closes on Tuesday. This could see the stock moving in the after market and there should be some volatility during the Wednesday session. The company’s revenues have been hurt by the closure of its retail stores but analysts will be looking for any changes to their strategy after the company was aiming to pivot more towards an e-commerce model of game downloads and streaming.
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