Financial Analyst/Content Writer, RADEX MARKETS
Lawrence J. came from a strong technical and engineering background before pivoting into a more financial role later on in his career. Always interested in international finance, Lawrence is experienced in both traditional markets as well as the emerging crypto markets. He now serves as the financial writer for RADEX MARKETS.
PODÍL
On Tuesday, for the second time this month, Bitcoin dipped below $63,000 per coin. It may not seem like an important price marker, but it represents a 50% drawdown from last October’s record high of $126,000 and is therefore psychologically important for many market participants. It goes without saying that the price action in cryptocurrencies has been abysmal in recent months. Many projects are now flirting with prices last visited years ago, ranges that many traders had thought they had long since left behind. Unless Bitcoin undergoes a massive rally over the next few days, it will close in the red for a fifth consecutive month. It has not done this since the 2018 bear market, which saw a total drawdown of 85%. At the time, crypto was reeling from the collapse of the initial coin offering boom, which imploded in spectacular fashion after the ICO bubble popped. The current collapse does not have a prevailing narrative behind it because the underlying cause is structural in nature. To put it bluntly, too many people lost too much money back in October. The 10/10 crash wiped out large swathes of the trading population, from small retail to advanced traders to market makers. No one was spared; the lack of liquidity is still being felt to this day.
There is very little going on this week with regard to scheduled events. The economic calendar is dry as a bone, the only exception being US PPI figures on Friday. The main event of the week is Nvidia (NVDA) Q4 earnings report, which is set for publication after the closing bell later today. Despite all the panic surrounding tariffs and Iran, stock markets have been relatively muted so far this week. The AI scare trade has emerged once again however, this time marking International Business Machines (IBM) as its target. IBM plummeted 13% on Monday, its worst stock performance in 25 years, following claims from AI startup Anthropic, who said that its Claude Code tool could help modernise the COBOL programming language. COBOL is often cited as an antiquated language with which fewer and fewer programmers are familiar, but one that remains crucial to IBM infrastructure. Whether or not the tool can actually disrupt the status quo is irrelevant; the AI scare trade remains a powerful narrative, at least for the time being.
Obchodování s deriváty a pákovými produkty je vysoce rizikové a může vést ke ztrátám přesahujícím vaši počáteční investici. Před obchodováním si přečtěte naše Obchodní podmínky (T&C) a Dokument o zveřejnění informací o produktu (PDS).
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