Markets and shutdown
The S&P 500 has crossed 6,700 points for the first time in history, setting a new all-time high even as the U.S. federal government is shut down the second day now. Also Bitcoin made a climb and reached 119k last night.
While the shutdown has forced agencies to furlough workers and pause economic data releases - like jobs report coming friday - marketmarkets appear largely unfazed. Investors are focusing instead on expectations of Federal Reserve rate cuts and solid corporate earnings, both of which continue to fuel optimism.
History shows that shutdowns often cause more political drama than economic damage, and markets typically recover quickly. Still, risks remain: prolonged disruption could weigh on consumer spending, delay key economic reports, and weaken regulatory oversight.
S&P 500 vs Bitcoin performance
Fun Fact: S&P index now has doubled within 5 years which is an impressive APR of 15%. Bitcoin outperformed that though by far, delivering an APR close to 60%, 4x the S&P performance! We will see how this year will end, S&P is up +14% while BTC already rallied +25%.
I expect both Bitcoin and the S&P index to reach further ATHs in the coming weeks. What about you?
I'm wondering why SO MUCH capital is flowing into risk-on assets during a shutdown. Is this because of an expectation of further rate cuts due to slower growth? It seems like the reaction is a bit extreme...not complaining though 😉
Yes cheaper Money with lower rates makes Risk Assets go up
I suppose Trump has been keen on getting this shutdown - on one hand, he can now fire a ton of public servants while blaming it on the Democrats, otoh his crypto and equity investments are thriving.
😅 Definetely nothing he does not like.
Hopefully Bitcoin and the S&P index will reach further ATHs soon.
🤞🏻
I'm betting on BTC and expect it to rise above 120k. We'll likely see new price highs this year.
Definetely. I expect BTC to rise even higher. 150k Area is my target
Also Gold has made another ATH, now think that everthing will go up, new Bitcoin ATHs probably even this Q4 and/or next year.
True. Gold also rallying. 👍🏻
Interesting how the shut down blocks financial reports and job occupation, maybe it's done on purpose
Schon seit Monaten sagen viele immer wieder: Bad kommt die nächste Korrektur! Bald...
Mal schauen.
Wird kommen, nur mit dem Timing das ist eben so ne Sache.
The SPX and BTC chart look similar lol, they're both indeed correlated in some shape or form. Rooting for more BTC ATHs :)
Both up. 👍🏻
S&P hitting 6700 while everything's on hold?! 🚀 Crazy times! Let's see how the horses react. 😉