In the Asian market on Monday (January 15), the U.S. dollar index rose to 102.46 to maintain the short-term bullish trend, but Barclays Bank predicted that the Federal Reserve's interest rate cut would occur in advance in March, and dovish pricing regained support. Gold rebounds to $2,050 as bullish traders stay in camp. Tesla CEO Elon Musk’s super charging station is nearing completion and it is rumored that Dogecoin payments will be available. BlackRock CEO Larry Fink hinted that both stock and bond settlements will be tokenized. Bitcoin encountered a strong pull after the collapse, and the currency price rebounded to above $42,200.
Fed officials’ signals are mixed, “dovish” rate cut pricing regains support
Uncertainty continues with mixed messages from Fed officials, the latest coming from Cleveland Fed President Loretta Mester.
She said the U.S. Consumer Price Index (CPI) report for December showed that the work was not yet done. She mentioned: "Inflation is forecast to continue to decline this year and we will fall short of our 2% target this year. As the data comes in, the Fed is in a good position to assess it."
"The CPI report doesn't tell us that inflation progress has stalled, but it tells us there's more work to do. The labor market is still tight, but not as tight as it was before," the source said. "I think a rate cut in March is too early and we're still Without a rate cut, we need more evidence that the economy is developing as expected," she added.
However, analysts at Barclays predicted in a report that the Federal Open Market Committee (FOMC) will cut the federal funds rate by 25 basis points at its March meeting. The bank had previously predicted that the first rate cut would take place in June.
After U.S. CPI exceeded expectations, but the producer price index (PPI) fell short of expectations across the board, the market looked ahead to major economic data this week, including U.S. retail sales data. Monday will be a public holiday in the United States. In addition to U.S. retail sales, this week also includes the Canadian Consumer Price Index, changes in the number of people applying for unemployment benefits in the United Kingdom, the initial value of the U.S. Consumer Confidence Index, the U.S. Empire State Manufacturing Index, and U.S. Initial Claims. Unemployment claims, UK retail sales, Australian unemployment rate, and Chinese industrial production.
USD technical analysis: No significant directional indicators
DailyForex analyst Adam Lemon said that the U.S. dollar index had a doji candlestick last week, but it did not give any significant directional indicators.
The weekly closing price is lower than the price 3 months ago, but higher than the price 6 months ago, showing a mixed long-term trend.
It is worth noting that there are several bearish factors, including the fact that the weekly candle has a clear upper shadow, which once again appears to reject the new key resistance level of 102.57, where all price action is occurring. horizontally below.
Recent price action has invalidated the previous key support level at 101.56.
For these reasons, Lemon is prepared to short the dollar, but since it is still January and the direction of the market may be difficult to predict, he is cautious.
Gold Technical Analysis: Long-term buy and hold scenario remains unchanged
Precious metals analyst Christopher Lewis pointed out that the gold market was very noisy this week, initially falling sharply and then showing signs of recovery. Of course, gold will continue to be very sensitive to interest rates in the U.S. and other major economies. If interest rates continue to fall, then the market is likely to continue to see the gold market as one of the main beneficiaries.
The $2,075 level above is a huge resistance level that gold needs to overcome. If gold prices are able to break above this level, gold prices may continue to be a long-term "buy and hold" situation.
Musk’s Supercharger station is nearing completion and rumored to accept Dogecoin payments
According to aerial footage recently disclosed by FOX LA, Tesla's Supercharging Station is under construction and is nearing completion. The charging station is located near Santa Monica Boulevard in Hollywood. , the original restaurant Shakey's Pizza Parlor and Restaurant has disappeared, and a disc-shaped building is emerging.
The construction plan shows that the super charging station will include a restaurant, an open-air drive-in cinema and 34 charging stations, 29 of which will be super charging stations. The charging stations will be open to all electric vehicle brands, not just Tesla. . It is reported that the waiters will deliver the food on pulleys. This will be the first entertainment center in the United States that combines restaurants, open-air drive-in cinemas, and charging stations, and is expected to begin operations by the end of this year.
It is worth noting that Musk personally tweeted in February 2022 to announce that the super charging station would accept Dogecoin payment. He wrote at the time: "Supercharging stations in the Hollywood area, plans to install futuristic restaurants or drive-in movie theaters, and you will be able to pay with Dogecoin."
Dogecoin community members posted on Saturday that this is an exciting time for the Tesla Supercharger station and its attached restaurant and drive-in movie theater to accept Dogecoin. The tweet immediately sparked heated discussions in the Dogecoin community, calling for Dogecoin to rise to $1.
Musk revealed in a Twitter discussion this week that he still holds a large amount of Dogecoin and has not sold any Dogecoin because Dogecoin is his favorite cryptocurrency. He did not mention and whether he holds other cryptocurrencies, but he mentioned that his own SpaceX holds Bitcoin.
Musk also mentioned earlier that he is considering using Bitcoin on Mars, but there are still difficult problems to solve. At the same time, he is open to using Bitcoin on Twitter.
BlackRock reveals major financial reforms: stock and bond settlement will be tokenized
BlackRock, with assets under management exceeding US$10 trillion, submitted a Bitcoin spot ETF application in June 2023, setting off a wave of Bitcoin spot ETF applications from traditional financial institutions. The U.S. Securities and Exchange Commission approved 11 Bitcoin spot ETF applications including BlackRock on January 11 last week, setting an important milestone for the cryptocurrency market.
Fink said in an exclusive interview with Bloomberg over the weekend that after the listing of the Bitcoin spot ETF, asset tokenization will be the next step for BlackRock. He said: “We believe that the next step will be the tokenization of financial assets, which means that each stock and bond will have its own CUSIP code, which will be recorded in a general ledger. Every investor, you and I, will have our own code, our own identification.”
The so-called CUSIP code, whose full name is Committee on Uniform Security Identification Procedures, is the American Bankers Association Committee's Uniform Securities Code Program. It is a number that identifies all U.S. stocks and registered bonds and is managed by the United States Uniform Security Identification Committee (CUSIP).
Fink believes that through the tokenization of real world assets (RWA), it will be possible to get rid of all the current problems surrounding bonds, stocks and digital illegal activities, and most importantly, it will be possible to customize it to suit each individual through tokenization. Investment Strategy. He explained: “We will be able to do instant settlement, think about how much it will cost to settle bonds and stocks, if there is tokenization, everything can be done immediately because it is just an itemized account, we think of it as a financial asset technological changes.”
He previously pointed out that the Bitcoin spot ETF is the first step in the technological revolution of the financial market. The second step will be the tokenization of every financial asset. He sees the value of the Ethereum ETF, and these are just the beginning of tokenization. . “If you have a tokenized security, and you have a tokenized identity, when you buy or sell an instrument, it’s recorded on a jointly established ledger. Think about things like money laundering, through tokens. A modernized system will eliminate all corruption.”
Bitcoin Technical Analysis: Bulls and bears battle hard as bears maintain pressure
CoinTelegraph said that Bitcoin failed to maintain the price above $48,000 in the past few days, attracting short-term traders to take profits, and began to fall sharply on January 12.
Bulls and bears are witnessing an uphill battle near the support line of the ascending triangle pattern, and although buyers managed to hold the support line at last week's close, they were unable to start a meaningful recovery, suggesting that the bears are maintaining pressure.
The 20-day exponential moving average of $43,933 has begun to decline, and the relative strength index (RSI) is just below the midpoint, indicating that the bears are trying to stage a comeback.
If the price sustains below the triangle, Bitcoin could drop to $40,000 and then to $37,980. Buyers will have to push the price above $44,700 to regain control.
