The White House and President Trump want a US strategic reserve for crypto, including Bitcoin. The Daily Breakdown digs into the details.
Monday’s TLDR
- Crypto reserve ignites BTC
- Earnings remain in focus
- IBIT aims for big gains
Weekly Outlook
February wasn’t the best month for stocks, with the S&P 500 and Dow falling around 1.5%, while the Nasdaq 100 fell almost 3%. Bitcoin had an even worse month, losing over 17%.
However, it has recouped some of those losses over the weekend thanks to reports that the White House plans for a crypto reserve. That had Bitcoin, Ethereum, Bitcoin Cash and others rallying over the weekend (more on this below).
As we turn our attention to this week, earnings will be in focus, with a particular interest in retailers.
Target, Best Buy, and CrowdStrike will report earnings on Tuesday, while Abercrombie & Fitch, Foot Locker and Marvell report on Wednesday.
On Thursday morning, JD.com, Cracker Barrel and Kroger will report earnings. After the close, Costco, Broadcom and Gap will report. Check out the full earnings calendar here.
Friday’s main event will be the February jobs report. It will show us how many jobs were added (or lost) last month, as well as provide the updated unemployment rate. Given last month’s disappointing report, this week’s result will surely be in focus.
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The setup — Bitcoin
Over the weekend, the White House unveiled a US strategic crypto reserve, including Bitcoin, Ethereum, XRP, Solana, and Cardano. This led to large gains within the crypto space, although some crypto investors argue the reserve should hold only Bitcoin.
Speaking of Bitcoin, it’s been a volatile couple of days, with BTC recently hitting its lowest level since November 10th.
Last week we talked about what could happen if Bitcoin broke below support, noting that it could potentially test down to its 200-day moving average. Well, that’s exactly what happened, but this area ended up being a big support level.
The good news is, Bitcoin has regained the key $90,000 level after a successful test and hold of the 200-day. The bad news is, it still remains below the 50-day moving average and downtrend resistance.
Bulls will want to see BTC clear these hurdles. If it can do so, it’s possible that Bitcoin retests the $100,000 level and potentially higher.
However, if these areas remain resistance, the $90,000 level will be back on watch for support, followed by the 200-day moving average and recent lows.
What Wall Street is watching
TSLA – Tesla bulls are hoping the stock finds a new energy source in March after shares were battered with a 27.6% loss last month. It was one of Tesla’s worst months on record as shares were pressured lower due to political volatility and a sharp decline in Tesla-registered vehicles in Europe.
QQQ – The QQQ ETF had its best trading session since President Trump took office, gaining roughly 1.6%. The ETF didn’t look so hot in the morning, trading lower after falling 2.8% on Thursday and after falling nearly 5% for the week. Bulls are hoping Friday’s momentum can push the ETF higher to start off March.
IBIT – Shares of the largest Bitcoin ETF, IBIT, are up more than 10% in Monday’s pre-market trading session. Other Bitcoin-focused stocks, like MicroStrategy and MARA Holdings, are also catching a strong bid following the crypto reserve news out of Washington.
Disclaimer:
Please note that due to market volatility, some of the prices may have already been reached and scenarios played out.