🔥🪙 Bitcoin on FIRE Again

Nov 10, 2024

Happy Sunday,

This week’s market update brings a mix of intriguing shifts and milestones. Jobless claims are inching up, hinting at potential softening in the labor market after impacts from hurricanes and a major strike. Meanwhile, consumer sentiment is climbing, hitting its highest level since April as optimism about personal finances grows, despite persistent inflation concerns.

And in the crypto world, Bitcoin has shattered a new record, breaking $80,000 following Trump’s election win and his pro-crypto promises. With everything from labor dynamics to record-breaking crypto moves, there’s plenty to explore—let’s dive into the details!

- Humphrey

Market Report

US Initial Jobless Claims Tick Up, Remaining at Pre-Covid Levels

The latest US unemployment benefits data showed a slight increase in initial claims, rising by 3,000 to 221,000 in the week ended November 2.
- Continuing claims, which indicate the number of people receiving ongoing benefits, rose to 1.89 million, marking the highest level since November 2021.
These changes were largely due to recent events such as Hurricanes Milton and Helene in the Southeast, as well as the now-resolved Boeing Co. workers' strike, which led to temporary layoffs in the manufacturing sector.
While initial jobless claims are similar to last year's levels, the increase in continuing claims compared to a year ago could indicate a softening in labor market conditions.

US Consumer Sentiment Advances to Highest Level Since April

The University of Michigan's consumer sentiment index for November 2024 rose to 73.0, marking a seven-month high and exceeding most economists' expectations.
- This increase represents the fourth consecutive month of improvement, with the index now 19.1% higher than a year ago.
The surge was primarily driven by the expectations index, which climbed to 78.5, its highest level since July 2021, reflecting growing optimism about personal finances and both short-term and long-term business conditions.
Consumers' inflation expectations for the coming year decreased to 2.6%, the lowest since December 2020, although long-term inflation expectations slightly increased to 3.1%.
- Despite ongoing concerns about high prices, Americans expressed increased confidence in the economy's trajectory and labor market prospects.

Bitcoin Breaks $80,000 for First Time on Optimism Over Trump

Bitcoin surged past $80,000 for the first time, driven by President-elect Donald Trump's victory in the US presidential election and his pro-crypto stance.
Trump's clean sweep of seven battleground states has bolstered the cryptocurrency market, with the crypto industry having invested over $100 million in supporting crypto-friendly candidates.
- Trump's campaign promises to create a strategic Bitcoin stockpile and appoint crypto-friendly regulators.
The rally adds to Bitcoin's 91% gain in 2024, which has been further supported by strong demand for US Bitcoin ETFs and the Federal Reserve's interest rate cuts.