The market is trying to ignore tariff disputes and is closely watching large bank earnings and inflation data. Bitcoin broke through $120,000 for the first time yesterday, reaching a high of $123,218, driving up cryptocurrency-related stocks. Coinbase's stock closed at $394.01 on Monday, marking its market value at $100 billion for the first time. Although MicroStrategy (MSTR) announced buying 4,225 more BTC for $472.5 million, bringing its Bitcoin holdings to 601,550 BTC, MSTR is still far from its November high of $543 as Bitcoin continues to set new records.
(Bitcoin Breaks New High Silently at 123K: Preparation or Top Emerging?)
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ToggleBanks Open Earnings Season, Low Expectations May Drive Market Higher
The second-quarter earnings season will kick off on Tuesday, with several major Wall Street banks, including JPMorgan, Goldman Sachs, BlackRock, and Citibank, set to report their results.
Although U.S. companies are preparing for the weakest earnings season since mid-2023, lower expectations may make it easier for companies to exceed forecasts.
Morgan Stanley strategist Michael Wilson stated that large U.S. stocks are attractive as they may be driven by fiscal spending bills and strong earnings prospects.
CPI to be Announced Soon
The Consumer Price Index (CPI) will be released tonight (7/15), and after several months of low inflation rates, the market expects June's CPI to potentially accelerate slightly as businesses begin to pass on import cost increases due to tariffs.
Increases in categories like furniture, toys, entertainment goods, and automobiles are expected to end the trend of consistently moderate consumer inflation. This presents a challenging situation for the Federal Reserve, which has been defending maintaining interest rates in anticipation of tariff-driven inflation that has not yet materialized.
Josh Rubin from Thornburg Investment Management said:
"I don't think people believe any data expected to be released this week will substantially guide portfolio allocation. We are still observing tariff policies and other inflation and employment data that might affect the Fed's decision-making."
Bitcoin Breaks $120,000, Coinbase Market Value Reaches $100 Billion
Bitcoin broke through $120,000 for the first time yesterday, reaching a high of $123,218, driving up cryptocurrency-related stocks. Coinbase (COIN) and MicroStrategy (MSTR) stocks both rose. Coinbase's stock closed at $394.01 on Monday, marking its market value at $100 billion for the first time. In just the past month, Coinbase's stock has surged 50%, driven by the successful IPO of stablecoin issuer Circle and positive regulatory developments in the U.S.
(Circle Boosting Coinbase? Bernstein Raises COIN Target to $510)
MicroStrategy (MSTR) rose 3.78%, closing at $451.02. Although it announced buying 4,225 more BTC for $472.5 million, bringing its Bitcoin holdings to 601,550 BTC, MSTR is still far from its November high of $543 as Bitcoin continues to set new records.
(Bitcoin Keeps Setting New Highs, Why Isn't MSTR Moving?)
Risk Warning
Cryptocurrency investments carry high risk, and prices may fluctuate dramatically. You may lose all your principal. Please carefully assess the risks.
