Bitcoin price today: dips to $92k as Fed cut doubts spark risk-off mood
Bitcoin is now at a 7-month low and has declined this year. The decline in cryptocurrencies may be a “canary in the coal mine” warning about impending worldwide deflation. On the other hand, gold remains very firm, so it is possible that crypto investors may be shifting to gold.
Home Depot (HD) cited a lack of storms for its disappointing quarterly report. This is the fourth quarter in a row that Home Depot has missed analyst estimates. I think it is safe to conclude that the housing market remains depressed and can only be shored up by another Fed key interest rate cut.
Of course, before the end of the year, President Trump will nominate a new Fed Chairman, effectively making current Fed Chairman Jerome Powell a lame duck. A new, more pro-business Fed Chairman will be a positive development for both the stock and bond markets.
This week will all be about Nvidia’s quarterly announcement. As always, Nvidia’s (NVDA) guidance will be crucial. There have been reports trying to imply that the data center boom would be constrained by construction delays as well as soaring electricity costs. The simple fact of the matter is that the U.S. is the “Saudi Arabia” of natural gas, so the U.S. has unlimited resources to cheap electricity via natural gas turbines. Although both GE Vernova (GEV) and Siemens have 5-year order backlogs for their train-sized natural gas turbines, the data centers can also operate on smaller turbines per data center that are widely available, thanks to the aviation industry.
When you look around the world, the U.S. remains an economic oasis. Deflation is systematically destroying China. Japan announces that its economy shrank at a 1.8% annual pace in the third quarter. Britain chased out wealthy residents and is now forced to raise taxes to curtail its bloated budget. France remains dysfunctional, and Parliament cannot pass a budget due to the inability to implement pension reforms. Germany continues to commit economic suicide by curtailing gas turbines to appease to NetZero crowd, which is systematically destroying its manufacturing base.
The fact that Nvidia’s market capitalization is higher than the British, French, German, and Italian stock markets says it all. In America, we have legal monopolies that are taking over the world. The Trump Administration is embracing America’s economic dominance and hitting the accelerator pedal.