“Bitcoin is a fraud. It’s worse than tulip bulbs.”
— Jamie Dimon, 2017
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Just a few quick observations after a lengthy struggle to get the engine room up and running again following a rare power cut in Zurich yesterday evening …
Bonds and associated interest rates where once again the focus in financial markets yesterday (and as an aside will also be a major topic in the upcoming weekly Quotedian newsletter), as the Big Beautiful Bill passed the House of Representatives, initiating another sell-off in duration. However, at same stage the bond market seemed to collectively to say “enough for now” and yields started falling again in what was probably a combination of “buy the rally, sell the fact” and position squaring ahead of a long weekend. Here’s the intraday chart of the 30-year US treasury bond yield:
Not surprisingly, equities showed pretty much the mirror picture of the above, first selling off and then recovering as speculators starte closing their positions:
But confirming how lacklustre the recovery rally was, were the breadth figures, which showed that for every two stock higher on the day, three closed lower. This followed Wednesday massive 96% down day …
On the currency side, it was a relatively quite day in comparison to the recent past, though we find the breakout of the GBP versus the USD to new cycle highs interesting;
Sterling leading the way for other currencies to breakout and up versus the Greenback?
And I am sure you are aware of this, but yesterday was Bitcoin Pizza Day! According to online sources:
Bitcoin Pizza Day is celebrated annually on May 22, commemorating the first real-world transaction using Bitcoin. On this day in 2010, programmer Laszlo Hanyecz paid 10,000 BTC for two Papa John's pizzas, marking a pivotal moment in cryptocurrency history. At the time, those bitcoins were worth about $41; today, they would be valued at over $1.1 billion
And what better way for Bitcoin to celebrate this with a new intraday all-time high at 111,995.39 AND a new all-time closing high at 111,718.09?!
As I said, only a short note today, but make sure to be subscribed to The Quotedian (www.thequotedian.com) to get your full-blown update on cross-asset happenings on Sunday evening/Monday morning.
HAVE A GREAT WEEKEND AND MY THE TREND BE WITH YOU!
Excellent piece from the very fine technical analysis folks at Julius Bär, which perfectly fits the weaker-USD-thread we have been spinning throughout the week just gone by. Without further ado:
