US Futures Keep Steady, Bitcoin Slips Below $60,000
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- US stock futures muted in pre-market trading
- Bitcoin climbs over $61,000, slips about 5% on Monday
US equity futures are trading relatively unchanged ahead of the trading session on Monday. A steady pace is narrating the futures markets before US trading kicks off as investors seem to have paused to reassess last week’s wild gyrations that led the Dow and S&P500 to all-time highs. The three US benchmark indexes are hovering around unchanged levels with Dow futures modestly in the green, while S&P futures and Nasdaq futures are flat to negative.
Last week’s turbulent trading pushed the Dow Jones Industrial Average higher by 4.80%, while the S&P500 snatched a 4.20% gain. The tech-focused Nasdaq Composite ended the week up by 1.70%, having gone through a 6.70% move inside the week, rattled by rising bond yields, concerns over inflation, and the imminent release of the $1.9tn stimulus package.
The American Rescue Plan, the second-largest economic stimulus in the history of the US, is now being disbursed among recipients. Joe Biden’s flagship legislative item includes a one-time payment of $1,400 per American earning up to $75,000 a year. It also includes an extension of unemployment benefits at least until early September. “The American Rescue Plan’s direct payments have begun going out. Help is here” said President Biden using his Twitter account.
New Heights for Bitcoin
Over to cryptocurrencies, bitcoin topped $60,000 for the first time this weekend. The number one digital asset shot to a high of $61,500 on Saturday as crypto enthusiasts shrugged off speculation worries. On Saturday alone, bitcoin jumped 10% to reach an all-time high as the whole crypto space continued its move to the upside. Ethereum also received a significant boost but it was not sufficient for a new all-time top. The second-largest coin climbed 12% over the weekend to reach a high of $1,935, a couple of hundred dollars short of its all-time peak at $2,038 made on Feb 20.
On Monday, the cryptocurrency market seems to be going through a pullback as main crypto players are lower during the early trading hours. Bitcoin has come down to $58,000, or a 7.10% decline from its high, while Ethereum is lower by 8.70% and is trading at levels near the $1,800 mark. Bitcoin’s market dominance has been holding steady above 61% for the past few days as investors as predominantly focused on injecting liquidity into the most popular coin in the market. Bitcoin’s market value continues to float above $1tn, while the whole crypto space is valued at nearly $1.75tn.
Elsewhere, early Monday trading has the US dollar moving higher against other currencies, while gold is pushing lower. Oil is higher and on its way to regaining the $70 mark per barrel. Later in the week, investors will be monitoring the Federal Reserve convention where Fed Chair Jerome Powell will lay out Fed’s policies and provide insights on the US economic recovery from the sweeping effect of the pandemic. Additionally, during the meeting, market participants will be looking for updates on the Fed’s plans to tackle borrowing costs and increased inflation expectations.
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