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Bitcoin's Powerful 2024 Start

Bitcoin's Powerful 2024 Start

Plus, ASML's new China restrictions.

Today is Tuesday, January 2, 2024.

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Bitcoin's Powerful 2024 Start

Bitcoin started 2024 off with a bang, jumping 7% on Monday to over $45,000.

Details: This marks the first time that Bitcoin has made it past the $ 45,000 level since April 2022.

Powering the Story: Reuters reported on Saturday that the U.S. Securities and Exchange Commission could notify some spot Bitcoin ETF (exchange-traded fund) applicants about the agency's decision to accept their proposals as early as Tuesday.

Background: Anticipation has been building for the approval of a spot Bitcoin ETF in the U.S., which would give traditional investors direct exposure to Bitcoin. The SEC has been dragging its feet with its decision to approve them.

Price: Bitcoin is up 21% in the last 30 days. It is also up over 150% in the past year.

Final Thoughts: Keep your fingers crossed and hope that a decision comes soon. A spot Bitcoin ETF would legitimize cryptocurrency investing.

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Notables

Notable Earnings Today: N/A.

Notable IPOs Today: enCore Energy Corp. Common Shares (Nasdaq: EU), AI Transportation Acquisition Corp Ordinary Shares (Nasdaq: AITR).

Notable Equity Crowdfunding Campaigns Ending Today: La Coop Coffee (SMBX). NettyWorth (Republic).

Notable Economic Events Today: S&P Global U.S. Manufacturing PMI (9:45 a.m. ET).

ASML's New China Restrictions

Netherlands-based semiconductor maker ASML (Nasdaq: ASML) said Monday that the Dutch government is blocking some of its exports to China.

Details: A license for the shipment of two ASML products, the NXT:2050i and NXT:2100i lithography systems, has been partially revoked by the Dutch government. A small number of customers in China will be impacted.

Zooming Out: ASML said that it doesn't expect the decision to have a material impact on its financial outlook.

Background: In October, the U.S. introduced restrictions on the exports of certain chips to China. It's another trade issue between the U.S. and China.

Stock Price: ASML had a good 2023 with a 38% increase in its stock price. It is also up 11% in the last 30 days.

Final Thoughts: The semiconductor space has been resilient, though it is fair to wonder how all of these export bans will impact the business.

EV Stocks Face Uncertain 2024

Following some mixed results for electric vehicle stocks in 2023, the new year could bring new headwinds to the industry.

Background: Tesla (Nasdaq: TSLA) led the way for EV stocks with a 129% gain in 2023. Other winners included Rivian Automotive (Nasdaq: RIVN), which went up 31%.

Yes, But: Several EV stocks struggled last year. NIO (NYSE: NIO) dropped 5% and Lucid (Nasdaq: LCID) fell by 31%.

Powering the Story: EV sales slowed throughout 2023 due to sticker shock from consumers. EV makers lowered their prices to meet the slow demand. The discounts and tax cuts to purchase these EVs didn't move the needle at all. As EV sales declined in 2023, sales for traditional cars increased.

Zooming Out: How bad can things get for the EV industry in 2024? Last month, a Bernstein analyst predicted that delivery and revenue estimates for Tesla will come down in 2023.

Final Thoughts: Long-term, EV stocks have a bright future. But 2024 will likely be tricky for the industry.