Hello as always, and welcome to today's edition of Overbit Weekly Round Up. It's tough to get a handle on the markets in general, especially cryptocurrency markets, so it's always important to step back and pay attention to how some of the week's top stories are developing.
Our first story to round off this past week is quite a large one - $1.9 trillion worth to be exact. According to reports, the U.S. House of Representatives finally approved the long-awaited stimulus package on Wednesday, 10 March. Approval by the House was almost assured in the press, given the Democrat's large majority in the house, though it did come down to a straight party-vote line: 220-211.
Nevertheless, though, news of approval is sure to be welcomed by the millions of Americans who've been waiting for their check since the past president.
The bill now heads towards President Biden's desk for his final seal of approval, which is expected to happen at the end of this week. It would take days to report on all the various funding measures within the bill. Still, the vast majority focus on direct stimulus payments to Americans, increased unemployment benefits through September, federal aid for struggling states, and more funding for vaccine distribution.
Though news of this stimulus bill has been quite widely reported for days and weeks (if not months), it seems unclear at this junction whether the news is 'priced in' to the markets. Markets like cryptocurrency, gold, and stocks (especially the tech sector) have shown relative strength off the back of this news, but one might expect stronger price action than they have shown over an approved stimulus package. That being said, now seems wise for a good time to let the market play out and possibly react to President Biden officially signing the bill into the law.
Heading into our next story of the week, one of the world's largest banks, JPMorgan, is poised to launch a Cryptocurrency Exposure Basket With 11 'Bitcoin Stocks' Including MicroStrategy And Square. This Basket is a new product for JPMorgan to offer to investors that want exposure to cryptocurrency.
This Basket will contain an "unequally weighted" group of reference stocks that either own cryptocurrency or operate a business linked to it. Some of the other Basket companies include mining chip manufacturer NVIDIA Corporation and mining company Riot Blockchain Inc.
This new product at JPMorgan is a stark contrast to their CEO Jamie Dimon's policy in 2017, where he stated he would fire any employee trading Bitcoin for being "stupid. This sentiment reversal by a prominent Bank CEO can serve as a trend marker for how institutions currently feel about cryptocurrency as an investment.
With cryptocurrencies gaining so much traction from corporations and institutional investors, it's hard to feel that the current market sentiment is very bullish.
Thank you as always for reading Overbit.com's Weekly Round Up; we'll be sure to keep you informed of the top market news stories every week.