We are back with another lightning-round edition of The Daily Scoop. Here are the most important events that shaped the movements of the stock market last week:
- Last week, the stock market started on high notes. However, two things made investors anxious. The Fed’s meeting was due on Wednesday, and the looming December 15th tariff deadline was rapidly approaching. (Read More)
- By mid-week, the Feds met and decided to keep the interest rate the same. The stock market ended the day slightly higher on the possibility of a trade deal before Sunday’s deadline. (Read More).
- Also, during the week, the largest publicly traded company was born in Saudi Arabia. Moreover, semiconductor stocks finally started to recover as the demand cycle entered a new upward phase in this sector.
- On Friday, the news broke that President Trump approved phase one of the trade deal. However, Chinese authorities remained awkwardly silent. Moreover, as investors learned about the deal, they realized the agreement is mostly around the need to continue working on a deal, and it doesn’t include any meaningful commitment on either side. Consequently, the early excitement flattened by the end of the day on Friday.
Beyond the overall market, we are going head to head with John McAfee about Bitcoin’s price tag. More information is available in the “Water Cooler” section. And, don’t forget to scroll down to read more about what happened in the stock market last week.
- U.S. markets: Despite a big jump in the morning, all three indices finished Friday almost flat. Scroll to the “Overall Market” section to learn more.
- Cryptocurrency: We don’t know what to tell you here. Bitcoin’s price continues to hover slightly above $7,000 level. Despite the rather stable trend in the price, one of Bitcoin’s most prominent supports, John McAfee, believes that the price per coin will hit $1 million by December 2020. Scroll down to the “Water Cooler” section to read more.
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Not a deal yet…
What happened last week?
The stock market started Friday on steroids. Everyone was high the news that President Trump approved phase one of the trade deal before Sunday’s deadline. Brexit got a nod of approval from the people of the UK who voted Prime Minister Boris Johnson in power again. And, the Feds announced that they would keep injecting cash into the financial markets to avoid any further cash crunch. Those were all positive news fueling the market with confidence.
All the commotions brought the stock market to a flat state for Friday, but the uncertainties were not too much to dampen the mood for the whole week. Overall, we ended last week in the green, even without a real trade deal.
Can Bitcoin price reach $1 million per coin?
Earlier in this Daily Scoop, we told you about John McAfee’s opinion about the future price of Bitcoin. He believes the price of Bitcoin will reach $1 million per coin by December 2020.
Is it possible?
His rationale is that Bitcoin is scarce, and scarcity leads to higher prices. It’s a simple supply and demand justification. However, the problem with such an argument is that scarcity is only one driver of value. Not everything scarce is valuable. Large enough number of people must want to have that rare thing to jack up the price. For Bitcoin, we need mass-scale adoption and day-to-day use of Bitcoin as the second ingredient for jacking up the price to $1 million per coin. Considering that McAfee’s timeline is December of 2020, it’s hard to imagine the target is realistic.
Maybe, one of the cryptocurrencies, perhaps a cryptocurrency that doesn’t exist currently, will be widely needed and used to justify such a price tag. However, we predict that it won’t be happening by December 2020.
Mark your calendars. We will revisit this prediction one year from now to see who wins the argument, John McAfee or the editorial team at the Daily Scoop.