Bitcoin's Long Liquidations
And, Nu Holdings faces non-performing loans.
Gif by Empirex_Capital on Giphy
Today is Wednesday, November 15, 2023.
The Early Bird Index today is 59.26.
New to this newsletter? Sign up here.
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.
Our friends at Scrab.com are working on a survey about stock investing. Here’s the link to take the quick survey: https://app.opinionx.co/investing/intro
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
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?
Getty Images Posts Weaker Loss
Getty Images Holdings (NYSE: GETY) dropped 5.37% in after-hours trading on Tuesday after the company reported a loss in the past quarter.
Final Thoughts: Getty is down 21% this year as its AI product struggles to remain relevant in the market.
Trends to Watch
Big Appetite for Weight Loss Drugs: Investors increase holdings of weight-loss drug makers’ shares in Q3 -filings (Reuters)
Pivoting: Glencore Built Its Empire on Coal. Now It’s Preparing to Say Goodbye (Bloomberg)
Big Tech: The Magnificent Seven add more than $200 billion to their market caps (MarketWatch)
Expectations: Investors have never been this confident bond yields are headed lower (Yahoo! Finance)
AI Gains: Nvidia Stock Is on a Hot Winning Streak. Where It’s Going Next. (Barron’s)
Thank you for reading!
Forward to a friend and tell them to sign up here.
Want more investing tips? Listen to the podcast.
Show Your Support: Buy Me a Coffee.
Questions or comments? Hit reply to reach out.