Wednesday , March 3 2021

Bitcoin and Tesla; The ‘smart money’ and platinum

Last week there were events that changed the game in the crypto market, which pushed the prices of bitcoin, the site and others to highs. Meanwhile, on the commodity front, a high rise in raw material prices has caused market markets to wonder if we are on the verge of a new super-cycle. The coming week may reveal whether large investors are buying crypto, as well as the resilience of precious metal, platinum.

Bitcoin to the moon … and beyond

Bitcoin reached a high of nearly $ 50,000 last week, and this time it was not an experienced team of amateur traders who organized an effort to squeeze the price higher. Elon Musk, a longtime supporter of cryptocurrencies and bitcoin, in particular, has already ignited a frenzy in “meme crypto” “diminco”.

But it was Tesla – the electric vehicle maker he founded and manages – that unveiled a $ 1.5 billion acquisition of Bitcoin that propelled this latest leg higher. Tesla said it would also consider allowing customers to pay through the digital token, and possibly open the floodgates to other large companies to do so.

Online payment groups like PayPal and Square already allow users to buy and sell using crypto. Last week, MasterCard joined their ranks and said it would allow the use of some cryptocurrencies on its network.

RBC has suggested that Apple may be the next big corporation to adopt Bitcoin, and Twitter’s CFO told CNBC on Wednesday that it too could buy the token. However, the world’s largest asset manager, UBS, Bitcoin is not ready to move into the mainstream. The treasurer, Janet Yellen, once again expressed reservations about cryptocurrencies in general, saying their use in online crime and money laundering is on the rise.

BlackRock, the world’s largest fund manager, said last month that it would allow two of its funds to invest in Bitcoin futures. So who’s next?

This week could bring the answer to that question, with the big Wall Street guns reporting how they invested their money in the last three months of 2020.

read more: Tesla has simply invested $ 1.5 billion in Bitcoin. Here are the cases of Taurus and Bear for crypto, according to legendary macro trader Mike Novogretz and Goldman CIO for managing wealth.

“Hey big waste” – how the money spent their money

In the coming week, major US investors will release details of why they are putting money in – and sold – in the fourth quarter of 2020. The so-called 13-F submissions to the Securities Authority offer a breakdown of holdings at the end of December of each fund with more than $ 100 million in management.

However, following the short squeeze of GameStop in January, anyone hoping to check out what stocks the funds are bumping into will be disappointed. F-13 filing contains only long positions, along with fund options holdings, convertible bills and U.S. Depository Receipts (ADRs) – or holdings in U.S.-listed foreign company shares. But there are no short-term positions.

Despite this, most investors – professionals and amateurs – are scanning the 13-Fs to see what the “smart money” did in the last quarter. Warren Buffett, the “Big Short” investor, Michael Berry – who must be one of the few Tesla pants to stand – Ray Ray, David Einhorn, Seth Kellerman and Ryan Cohen will all post details on what they bought and sold.

read more: It can only take two catalysts to the pockets of speculation to snowball into an extensive bubble, says one global strategist. He recommends 3 ways to take advantage of this frothy environment.

Platinum star appearance

The price of platinum rose by 15% to a price higher than $ 1,200 per ounce the highest in six years last week, driven by a brisk cocktail of a weaker dollar and a broad investor pushing into commodities and turning it into the best-performing raw material in the past. week. It is scorched over crude oil, copper and wood and is on its way to the summit of February.

Until last March, in the depths of the coronary heart disease crisis, platinum was on a long and painful downward trend. Aside from the use of jewelry, the main industrial use of platinum was in the catalytic converters of diesel-powered vehicles. The diesel emission scandal, which has led to a drastic drop in diesel vehicle sales and some punitive measures aimed at reducing their numbers on the roads, has eaten away at the demand for platinum – so much so that for the past six years it has been worth less than gold, despite being slightly more.

As the world shifts to using cleaner energy sources and reducing emissions, some commodities are proving to be central to this effort, and platinum is one of them.

Platinum, together with iridium, is used as a catalyst in the electronysis of proton exchange membranes – used to extract hydrogen from water as a source of sustainable fuel without emissions.

Johnson Mathieu, the world’s largest refiner of platinum group metals, said in a February 10 report that the global platinum market had run a deficit for the second year in a row in 2020. It appears that this year, too, there will be a shortage.

“The move towards an expected supply deficit is taking place at a time of increased focus on tightening emissions regulation in conventional combustion engines, while accelerating green hydrogen production has increased demand for platinum-based electrolysis capacity,” said Saxo Bank’s commodity strategy chief Ola Hansen. Note last week.

“After being on a downward trend for almost a decade, the platinum breakthrough last November helped attract renewed demand for investment, not long after gold reached $ 2,000 an ounce and its platinum premium rose above $ 1,000 an ounce. These developments helped attract increased branding activity between the two. Metals, “Hansen said.

Chart of the week – luck in the pot

Last week, cannabis stocks became parabolic, driven by rallies in double-digit percentages like Afria, Tillery and the sundial towers. Joe Biden’s victory in the presidential election and Democrats’ promises to reduce cannabis incrimination have given a number of investors, including Reddit traders, a reason to pile up. Cannabis was the leading investment topic last week, according to broker CMC Markets’ global theoretical ETF. Also screening, with an increase of almost 40%, compared to the fourth uranium, with an increase of 11%.

Relative performance of ETFMG's alternative harvest certificate compared to S&P 500

Relative performance of ETFMG’s alternative harvest certificate compared to S&P 500.

Bloomberg / Insider

The economic calendar for February 15th

February 14 GDP in Japan

February 16 GDP growth in the Eurozone in the fourth quarter

February 17 U.S. Retail Sales / FOMC Minutes

February 17 Unemployment rate in Australia

February 17th

February 18 Retail sales in Australia

February 18 The Philadelphia Fed’s Business Activity Index

February 19 UK Retail Sales / Consumer Inflation

February 19 Retail sales in Canada

February 21 PBOC class decision

February 21 Retail sales in New Zealand

Calendar of earnings on w / c February 15th

2/15 BHP Billiton

2/15 BHP Group

2/16 CVS Health Corp.

2/16 Glencore

2/16 Planetary Technologies

2/17 BAT (British American Tobacco)

2/17 Garmin

2/17 Rio Tinto

2/17 Shopify

2/18 Airbus

2/18 Barclays

2/18 Carrefour

2/18 Credit Suisse

2/18 Daimler

2/18 EDF (Electricité de France)

2/18 Nestle

2/18 Newmont Mining

2/18 Walmart

2/19 Alliance

2/19 Danone

2/19 Renault

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