It's getting hot in here, honey, bring some Bitcoin [Video]

Ipek Ozkardeskaya Swissquote Bank Ltd

US inflation advanced to 6.2% in October. That’s the highest level since more than three decades. More worryingly, it looks less and less transitory.

The jump in US inflation, and the yields soured the mood in the equity markets. Nasdaq of course paid the highest price among the three major US indices. But overall, compared to the inflation shock, it’s not a dramatic decline. And activity in US equity futures was positive in Asia, Nasdaq futures are up 0.22% at time of writing, hinting that the moodiness in the market will likely be transitory, unlike inflation…

Goldman advises to buy the USD 5-year 5-year breakevens on a bet that inflation would accelerate, and that the Fed would do nothing dramatic to tame the inflationary pressures, but people actually prefer rushing to Bitcoin, as a new-age inflation hedge. As such, Bitcoin hit a fresh record yesterday, before easing.

I am not saying that Bitcoin is not a good inflation hedge, I am saying that we don’t have enough data in hand that proves that it is. So why are people rushing to Bitcoin?

Despite a limited risk appetite, Rivian made a great debut in Nasdaq. The company sold 156 cars so far and is public since a day only, but it is already worth more than GM and Ford. Why?!

Author

Ipek Ozkardeskaya

Swissquote Bank Ltd

Ipek Ozkardeskaya began her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked in HSBC Private Bank in Geneva in relation to high and ultra-high-net-worth clients.

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