Bitcoin volatility spikes on South Korean news 04/12/2024

HOT stories for today
 

Stocks on the move:

• Salesforce (CRM) shares climbed 6% after reporting third-quarter revenue of $9.44 billion, exceeding forecasts of $9.35 billion, per LSEG.
• Marvell Technology (MRVL) stock surged 10% on upbeat guidance, with projected fourth-quarter revenue of $1.80 billion surpassing Wall Street’s estimate of $1.65 billion, according to LSEG.
• Okta (OKTA) shares jumped 16% after the company delivered stronger-than-expected fourth-quarter guidance and exceeded third-quarter earnings and revenue projections.
• Box (BOX) stock fell 2.6% after the cloud content management firm provided weaker-than-anticipated fourth-quarter guidance.

Watchlist: CHWY, OKTA, CRM, BBY, FL, DLTR, MRVL

Today’s action

• South Korea’s Kospi dropped nearly 2%, and the won hit a two-year low as political turmoil escalated with impeachment moves against President Yoon Suk Yeol. The Bank of Korea held an emergency meeting to stabilize markets. Elsewhere in Asia, Japan’s Nikkei fell 0.4%, while Hong Kong’s Hang Seng edged up 0.1%. Australia’s GDP growth missed expectations amid high borrowing costs and inflation.
• S&P 500 futures rose 0.17% Wednesday morning after the index hit a record close. Nasdaq 100 futures gained 0.4%, while Dow futures added 140 points (0.31%). Traders await the ADP payrolls report, projected to show 163,000 new jobs, along with U.S. Services PMI, factory orders, and durable goods data. Fed Chair Jerome Powell is set to speak in New York later, and earnings reports from Chewy, Dollar Tree, and Foot Locker are due.

Bitcoin

• South Korea’s martial law declaration caused chaos in the cryptocurrency market. On Upbit, Bitcoin (BTC) briefly plunged below $75,000 before rebounding to $91,699, while its global price stayed around $95,700, revealing a sharp regional price discrepancy tied to the political crisis. Other cryptocurrencies, including XRP, also saw steep declines.
• Within an hour of the announcement, Lookonchain reported over $163 million in Tether (USDT) flowing into Upbit. Analysts attribute this surge to opportunistic traders attempting to buy assets during the sharp downturn and capitalize on market volatility. The incident underscores how political instability can disrupt the crypto market, causing rapid price swings and heightened trading activity despite South Korea's recent regulatory measures, such as the Virtual Asset User Protection Act.
  Watchlist: Bitcoin: 90 000-99 590, Ethereum: 3000-3723, Solana: 220-265

Forex

• The Japanese Yen (JPY) softened during Wednesday’s European session, pressured by a stronger USD following upbeat U.S. Manufacturing PMI and job openings data, highlighting economic resilience. Expectations of a potential Bank of Japan (BoJ) rate hike in December and safe-haven flows may temper further losses. Investors now turn their attention to Fed Chair Jerome Powell’s speech and upcoming U.S. economic data for clues on monetary policy direction.
• EUR/USD declined on Tuesday, failing to sustain a recovery attempt above 1.0600. The pair trades near the 1.0500 level as EU data releases, including final PMIs, are expected to have a limited market impact. Market focus remains on U.S. Nonfarm Payrolls (NFP) data due Friday and Powell’s speech, which could determine the near-term direction for the Euro against the Dollar.
  Watchlist: EUR/USD: 1.0300-1.0650, USD/JPY: 150-157

Basic Materials

• Gold (XAU/USD) edged higher for a second day but remains in a tight range, reflecting trader caution ahead of Fed Chair Jerome Powell’s speech and Friday’s Nonfarm Payrolls report. Limited upside persists due to rising U.S. bond yields and expectations of a less dovish Federal Reserve. However, geopolitical tensions and trade concerns lend some support as subdued USD demand continues to impact the precious metal.
• According to API data, crude oil inventories increased by 1.232 million barrels for the week ending November 22, defying analyst expectations of a 2.06 million-barrel draw. WTI crude rose to $70 despite this rise, with year-to-date crude inventories declining by just over 4 million barrels. Last week’s data had shown a larger 4.753-million-barrel build.
  Watchlist: GOLD 2530-2790, US Oil: 65.00-73.00

The TEFS Analyst team wishes you a successful day!