š At death(-cross)'s door
Bitcoin's plunge continues, China's producer prices skyrocket, Refyne raises Series A and some more updates.
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First up,
Market SnapshotĀ š
Sensex: 51,941.64 (-0.64%) ā
Nifty 50: 15,635.35 (-0.67%) ā
Dow Jones:Ā 34,599.82 (-0.088%) ā
Nasdaq 100:Ā 13,810.86 (+0.058%) ā
Bitcoin: $34,669.27
Top StoriesĀ š°
1. Bitcoin be tumblin' š
There seems to be no respite for our beloved Bitcoin.
The world's largest cryptocurrency dropped nearlyĀ 2%Ā to $33,000, with some analysts saying that it's ādangerously approaching the $30,000 level.ā The virtual currency has plummeted 10% this month alone, compared to its 45% slump since mid-April. The continuing downward spiral has led chart-watchers to sound alarms that the crypto could reach a bearish pattern known as theĀ "death cross."
What's a death cross?Ā It's a technical chart pattern that indicates a potential for a major sell-off. The death cross occurs when a short-term moving average crosses over a long-term moving average to the downside.Ā
For Bitcoin, the recent slump has led its 50-day moving average to inch closer to its 200-day moving average. The last this happened was in November 2019, when Bitcoin dropped nearly 5% in one month.
But there's even a bigger crisis looming on the horizon. Some analyst said that if Bitcoin were to continue on its downward trajectory, it could reach $20,000!Ā
How did we get here? The plunge comes in the backdrop of growing regulatory rhetoric from the US and China. Moreover, Tesla CEO Elon Musk's energy concerns and the growing number of ransom payments made using Bitcoin further fueled the downfall.Ā
Why it matters? Despite such bearish outlooks, long termĀ hodlersĀ remain optimistic about Bitcoin's future. Proponents of cryptocurrencies like MicroStrategy CEO Michael Saylor boosted investor confidence by announcing plans to raiseĀ $500 millionĀ in junk bond sales to purchase more Bitcoin. Feeling bullish on crypto? Well then, letās getĀ started!
2. China's high on commodities šµ
The prices of commodities leaving China's factory in May has soared to theirĀ highestĀ level since the 2008 global financial crisis, mounting speculation and hoarding concerns.Ā
Producer price index ā which measures price movements from the seller's point of view ā advanced 9%, against Bloomberg's estimates of 8.5%. The index stood at 6.8% in April after spending the entirety of last year in negative territory.Ā Ā
Since January, the cost of raw materials rose sharply as demand for commodities reinforced China'sĀ industrial recovery. But rising prices have squeezed business margins, especially for producers directly selling their goods to consumers.
The growing prices have brought the attention of China's government, which warned againstĀ "excessive speculation"Ā in commodity markets. It's now taking targeted actions to tackle soaring prices, monopolies, and misinformation.
Meanwhile, China's consumer price index ā which measures price movements from buyer's point of view ā has remained at 1.3% from a year ago. The increase was mainly driven by volatility in pork prices, prompting the government to boost itsĀ pork reserve.Ā
Why this matters?Ā For the past decade, commodities did not enjoy bull runs as much as stocks and bonds. But that changed when the pandemic hit, which sent commodities prices to new highs. Prices of soybeans, copper, and oil rose nearly 60% since March 2020. Additionally, rising inflation, weakening US dollar, and fiscal and green infrastructure further contributed to this newfound growth.
3. Todayās big deals š
Fisker's unveils its moonshot goal for 2027Ā
Fisker, a California-based EV startup that hasn't launched any vehicle so far, has announced ambitious plans to make itsĀ first-ever climate-neutral carĀ by 2027. While the company hasn't released any project details, it aims to split the vehicle's lifecycle intoĀ five phases: upstream sourcing, manufacturing, logistics, use phase, and end-of-life. Fisker plans to make the vehicle without carbon offsets and will instead work with suppliers to create climate-neutral materials and production processes. The company is on track to start production for its all-electric Fisker Ocean SUV in November 2022, but it won't be climate neutral. Fisker, which first went public through a SPAC deal with Apollo Global, plans to bring four vehicles to market by 2025. Other automakers like Porsche and Polstar plan to go carbon-neutral by 2030.Earned wage access startup raises Series A
Refyne, a Bangalore-based startup that offers wage access solutions to full-time and contractual workers in India, raised aĀ $16 millionĀ Series A funding round from RTP Global and DST Global. The fundraising included participation from QED Investors, Jigsaw VC, and XYZ Capital, all of whom participated in a $4.1 million seed round in December. The company works alongside employers to provide workers with real-time access to their earned salaries to prevent them from taking payday loans or micro-credit schemes that carry predatory prices. So far, Refyne has over 100 companies as customers, including Cafe Coffee Day, Rebel Food, and Hira Group. It now plans to use the capital towards expanding its technology and accelerating its growth to serve 1 million workers in India this year.
Top ReadsĀ š
Here's how the FBI got access to the crypto wallet that received $2.3 million ransom fromĀ Colonial Pipeline.Ā
Global crypto exchanges are exploring ways to enterĀ IndiaĀ as the country contemplates banning virtual currencies.Ā
US Senate passes massive bipartisanĀ legislationĀ to address China's growing economic influence.Ā Ā
IndiaĀ extendsĀ food grain scheme to 80 crore people; to vaccinate citizens above 18 years for free starting June 21.
Fastly failure:Ā How a cloud glitch caused a slew of websites to go offline.
Tweet Of The DayĀ š
BREAKING NEWS: Uber-rich Americans are evading their taxes! š„±
Well, that's all from us. Until next timeĀ š
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