This week we have seen relative strength in the big indices such as the Dow, S&P, and NASDAQ. Although many large caps such as META and Amazon have seen large draw downs in light of poor earnings reports.
In the coming week, we have even more earnings reports coming in from big companies such as Uber, Pfizer, Paypal, Starbucks, Moderna, Toyota, CVS, SONY, AirBNB, Paramount Global, and many more.
If earnings reports continue to be underwhelming, indices' strength is likely to falter.
We also had the Advance GDP and Core PCE Index statistics come out this week in the US, the market saw a slight rise after expectations were largely met.
Next week we have many more large economic statistics being revealed including The Federal Funds Rate, the US unemployment rate, and multiple FOMC statements.
Elon Musk and Twitter have engaged in a long war for the Twitter acquisition deal to go through.
Elon did not take the entirety of the 44 billion dollar deal out of his own pocket though.
In documents revealed by Musk to the Securities and Exchange Commission (SEC) he had raised $7.14 billion amongst numerous investors including American computer technology company Oracle’s co-founder Larry Ellison, Binance, asset management company Fidelity and Brookfield, as well as Sequoia Capital and A16z.
But these were not the only investors interested, FTX CEO Bankman Fried's offer of up to 10 billion was apparently rejected by Musk.
Binance CEO Changpeng Zhao stated: “We’re excited to be able to help Elon realize a new vision for Twitter and we aim to play a role in bringing social media and Web3 together in order to broaden the use and adoption of crypto and blockchain technology."
Binance has been confirmed to have invested $500 million in equity funding toward Elon Musk’s $44 billion bid to buy Twitter.
The Binance stake in Twitter could give Zhao a chance to realize Web3′s decentralized ideals through large web 2 social media such as Twitter, the integration of crypto into the web 2 world is ever closer with this acquisition.
Musk has previously stated some of his many plans for Twitter, he has already hinted at plans to make the site more crypto-friendly, including accepting dogecoin as Twitter's local method of payment.
Let's see where Elon can take Twitter as the new free speech and web 3 integrated social media platform.
The founder of FTX Crypto Exchange, Sam Bankman-Fried, offered a hefty sum of money in order to purchase Twitter alongside Elon Musk.
But Elon rejected the offer, preferring to acquire the with the previously listed investors and the world's largest crypto exchange, Binance.
But why might this be? A big stake of up to 10 billion would have made it much easier for Elon to purchase the platform.
Bankman-Fried’s advisor, Will MacAskill, was reported to have sent Musk a text to discuss the acquisition of Twitter with the FTX founder.
Text messages revealed in the court case between Musk and Twitter showed that Bankman-Fried offered to support Musk with up to $15 billion.
A strange rejection from Elon, although surely thought through. The question remains why? Does Elon distrust the FTX CEO's motives? All we can do is speculate.
With Elon Musk's acquisition of Twitter, we saw Dogecoin price rally 150% in 4 days, but DOGE is now most overbought since April 2021 according to numerous indicators.
As stated, earlier this year, Elon had hinted at the idea of making Dogecoin a payment method to be used on the platform.
The full integration of a cryptocurrency in a major platform such as twitter would mark a great milestone for cryptocurrency legitimacy and global adoption.
Binance finished the week by sending 55,000 BTC to an external wallet.
The latest data from on-chain analytics firm CryptoQuant shows that more BTC left Binance in a single day than ever before.
Binance saw a net position change of over 55,000 BTC on October 26.
The most ever, totaling 1.1 billion us dollars with a calculated average price of approx. 20,000 per bitcoin.
Unlike with Binance, cross-platform position change did not set a global record, with June remaining higher.
Although this certainly is a good sign for the crypto bull case.
Cryptocurrency exchange FTX is working on creating a stablecoin, according to FTX CEO Sam Bankman-Fried in a recent interview.
CEO of crypto exchange FTX said that their collaborating on a stablecoin with another firm could be "very powerful"
“I think you’ll probably be hearing something from us on that in the not-too-distant future,” he told interviewers on the subject.
“We’ve held off on doing it because, I think to some extent, we think that cooperating on that can be really powerful and a lot of that ends with us trying to find the partners we’d be really excited to work with there,” said Bankman-Fried.
More stablecoins from trusted institutions and individuals could be a good thing, depending on their partnerships and decentralized nature.
Ready to level up your market knowledge?
As stated this week we have seen relative strength in the big indices such as the Dow, S&P, and NASDAQ. Although many large caps such as META and Amazon have seen large drawdowns in light of poor earnings reports.
We have seen a great rally over October, but a pullback is certainly what we should be expected sometime soon.
The likelihood of the FED coming out with any positive news for the markets is low. And if they come out with good news, it merely delays the inevitable crash.
We saw a breakout of the channel on the Dow (Fig. 1),, although we have seen these breakouts before, and they often just reverse back into the channel lows.
The key long-term levels for the Dow at 26000 currently sit at the bottom of the channel. Under the right conditions, these levels are extremely likely to be reached in the next 2 months.
The crypto market has seen a decent rally off its lows in mid-October.
For bitcoin, this low was put in at approx. 18000 on the 13th of October and has rallied over 13% since the low.
It has also broken out of the long-term descending triangle as seen in Figure 2.
The slight breakout to the upside out of the descending triangle has not seen much follow through for bulls. With key resistance sitting at 22000 we are only 5% away of a possibly strong rejection.
Under the current macroeconomic conditions, a fresh bull market seems unlikely.