Day: 24 June 2024

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Bitcoin tumbles back to $60,000

Bitcoin falling

The price of the cryptocurrency Bitcoin was down more than 6% at close to $60,000 on Monday 24th June 2024 – its lowest level in more than a month and about 17% from its March 2024 record.

In the past week, it’s fallen more than 10%.

Crypto investment products reportedly notched a second consecutive week of outflows, according to analysts. Last week, they saw their lowest trading volumes globally since the U.S. Bitcoin ETFs launched in January 2024.

Bitcoin one day chart 24th June 2024 at around $60,000 (CoinMarketCap)

Bitcoin one day chart 24th June 2024 at around $60,000
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Have you heard of the ‘Sahm Rule’ recession indicator?

Rules in a book

The ‘Sahm Rule’ serves as a heuristic indicator employed by the Federal Reserve to ascertain the onset of a recession in the economy.

The Sahm Rule is a real-time evaluation tool based on monthly unemployment data from the Bureau of Labor Statistics (BLS). Named after economist Claudia Sahm, it forecasts the onset of a recession when the three-month moving average of the national unemployment rate (U3) increases by 0.50% or more compared to its lowest point in the preceding 12 months.

This simple yet effective indicator helps policymakers monitor economic cycles and respond accordingly

Time to cut according to the ‘Sahm Rule’

Sahm has reportedly stated that the Fed is taking a significant risk by not implementing gradual rate cuts now. Last week, Federal Reserve officials significantly reduced their forecasts for rate cuts this year, shifting from three anticipated reductions noted in the March 2024 meeting to just one.

According to the creator of a well-established rule for predicting recessions, the Federal Reserve is risking an economic contraction by not lowering interest rates immediately.

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Nvidia briefly surpassed the individual stock market values of Germany, France and the UK

Market Cap up

The little-known company, Nvidia, now stands alongside Apple and Microsoft in market cap valuation thanks to AI.

In just a little over a year it has all but tripled its market valuation and become a go to investment on Wall Street and around the world.

Nvidia’s market capitalization has recently individually surpassed the total value of the German, French, and U.K. stock markets.

With a market cap exceeding $3.4 trillion, Nvidia now stands above these significant European stock markets in valuation.