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Bitcoin's Long Liquidations

Bitcoin's Long Liquidations

And, Nu Holdings faces non-performing loans.

November 15, 2023

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Today is Wednesday, November 15, 2023.

The Early Bird Index today is 59.26.

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Bitcoin's Long Liquidations

As stocks jumped on Tuesday, the price of Bitcoin and other cryptocurrencies sank due to leveraged long traders getting out of the market.

Details: Over $126 million in Bitcoin trades were liquidated on Tuesday, including long liquidations totaling over $97 million in a one-hour span, according to Cointelegraph. Reports suggest that this happened because of leveraged trades in the futures market, where some traders were forced to close their positions. In fact, there were over $300 million in leveraged crypto liquidations on Tuesday, according to CoinDesk.

Big Picture: Stocks performed well on Tuesday due to positive economic data, but crypto did not get the same benefit because of these long liquidations.

Yes, But: Optimism remains strong in crypto. A report from Grayscale said that slower inflation and lower bond yields could work well for crypto in the short term.

Price: Bitcoin is already up 114% this year, including a 30% increase in the last 30 days.

Final Thoughts: For the longest time, analysts have said that crypto was correlated to the stock market. With stocks up and crypto down yesterday, they may not be correlated after all.

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Notables

Notable Earnings Today: Cisco Systems (Nasdaq: Nasdaq: CSCO), Target (NYSE: TGT), Palo Alto Networks (Nasdaq: PANW), Advance Auto Parts (NYSE: AAP), JD.com (Nasdaq: JD), TJX (NYSE: TJX), Sonos (Nasdaq: SONO), Zim Integrated Shipping Services (NYSE: ZIM), XPeng (NYSE: XPEV), Catalent (NYSE: CTLT), J&J Snack Foods (Nasdaq: JJSF), Kulicke & Soffa (Nasdaq: KLIC), Tetra Tech (Nasdaq: TTEK), PennantPark Floating Rate Capital (NYSE: PFLT), Pennantpark Investment (NYSE: PNNT), Copa Holdings (NYSE: CPA), Endava (NYSE: DAVA), Gambling.com Group (Nasdq: GAMB), VNET Group (Nasdaq: VNET), Riskified (NYSE: RSKD), The RMR Group (Nasdaq: RMR).

Notable IPOs Today: N/A.

Notable Equity Crowdfunding Campaigns Ending Today: StartEngine (StartEngine), Boichik Bagels (SMBX), Kineon (StartEngine).

Notable Economic Events Today: PPI / Core PPI (8:30 a.m. ET), Retail Sales (8:30 a.m. ET), Retail Control (8:30 a.m. ET), NY Empire State Manufacturing Index (8:30 a.m. ET), Business Inventories (10:00 a.m. ET), Crude Oil Inventories (10:30 a.m. ET).

Nu Holdings Faces Non-Performing Loans

Photo by Rodion Kutsaiev on Unsplash

Shares of the digital banking company Nu Holdings (NYSE: NU) dropped 4.30% in after-hours trading on Tuesday following the release of financial results.

Financials: Nu Holdings reported revenue of $2.1 billion, a record in the quarter, which was better than expected.

Details: The digital financial services platform added 5.4 million customers in the quarter and expanded its gross profit.

Yes, But: The non-performing loan ratio, a key indicator of asset quality, decreased by 10 basis points to 4.2%.

Final Thoughts: Even though the financial sector has been shaky this year, Nu Holdings is up 148%. Can the company keep growing despite the non-performing loan ratio drop?