The Daily Breakdown looks at headlines hitting the markets, while taking a closer look at the technical setup for Bitcoin Cash.
Monday’s TLDR
- KO, SHOP report earnings
- Gold hits more record highs
- 2025 has headline risk
What’s happening?
It’s time to wake up and remember the power of a headline.
Over the weekend, reports surfaced of a 25% tariff on steel and aluminum imports. The weekend before, there were tariff headlines on Mexico and Canada, two of the biggest trading partners with the US. The weekend before that, the AI trade temporarily unwound after the DeepSeek reports.
Then just yesterday an unexpected headline hit the tape: “Elon Musk-led group makes $97.4 billion bid for control of OpenAI.” That news weighed on Tesla.
Investors should prepare themselves and their portfolios for more of these headlines, where tariffs (and mainly other large politically-related decisions) can come and go in an instance. These headlines and the potential volatility that ensues may become commonplace in 2025.
Depending on the severity of these announcements, it’s possible that investors get “fatigued” by the headlines — meaning stocks and crypto don’t move as much on these announcements — but if 2025 has proven anything so far, it’s that we’re likely going to see plenty more throughout the year.
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The setup — Bitcoin Cash
We usually spend more time talking about Bitcoin and Ethereum in this note, but Bitcoin Cash caught my eye this morning.
After last week’s temporary but violent pullback, BCH found support in a familiar area around $275.
This level was notable resistance in 2023 and in early 2024, but has been key support since breaking out last year. Going forward, bulls will want to see this level continue to hold as support.
If it does, it at least gives BCH the potential for a larger bounce back to the upside. If this support level fails, then it could usher in more selling pressure.
While Bitcoin is down about 10% from its high in 2025, Bitcoin Cash has fallen more than 30%. In other words, be aware of its potential volatility.
What Wall Street is watching
KO – Shares of Coca-Cola are rising more than 3% in pre-market trading after the company delivered an earnings and revenue beat for its Q4 results. The stock was up about 3.8% so far this year coming into today’s report and has rallied in four straight sessions. Check out the chart.
SHOP – Shopify stock is falling in pre-market trading, down almost 5% after reporting earnings. Revenue increased 31% to $2.8 billion and beat analysts’ estimates, while earnings of 44 cents a share slightly topped expectations. However, management’s free cash flow guidance of mid-teens growth in Q1 was below estimates, which appears to be weighing on the stock this morning.
GOLD – On Monday, gold notched its seventh record high in the last eight trading sessions. The rally has helped drive shares of the GLD ETF higher as well, while gold prices are up almost 43% over the past year and have climbed 10% so far in 2025.
Disclaimer:
Please note that due to market volatility, some of the prices may have already been reached and scenarios played out.