Round up of today's market news *

North American News

US Broader Indices Close Higher, Led by NASDAQ; Dow Struggles

Market Summary:
The broader US stock indices saw positive movement, led by the NASDAQ, which closed higher. However, the Dow Industrial Average moved lower, influenced by underperforming sectors. The final numbers show:

S&P 500: +23.36 points (+0.40%) at 5916.98
NASDAQ: +195.66 points (+1.04%) at 18987.47
Russell 2000: +18.48 points (+0.80%) at 2324.82
Dow Industrial Average: -120.66 points (-0.28%) at 43268.94

In the Dow 30, UnitedHealth was the largest decliner at -2.16%, followed by 3M (-1.51%), Travelers (-1.32%), and Nike (-1.30%). In contrast, Nvidia rose by +4.89% and Walmart increased by +3.0%. Overall, 18 of the 30 stocks fell, with only 11 advancing and one remaining unchanged.

Walmart Earnings Surpass Expectations: Key Insights on Consumer Sentiment
Walmart delivered impressive earnings, exceeding expectations and reflecting a solid consumer base. Despite not being part of the Mag 7, Walmart’s performance provides a pulse on US consumer sentiment. Notable figures include:

Q3 2024 Adjusted EPS: $0.58, surpassing expectations of $0.53
Q3 2024 Revenue: $169.50 billion, exceeding the expected $167.68 billion
Comparable US Sales (Excluding Gas): +5.5%, well above expectations of +3.8%
FY 2024 Adjusted EPS Guidance: Raised to $2.42-$2.47 from previous $2.35-$2.43

Other Key Insights:

Walmart reported a 3% reduction in Thanksgiving basket costs, aiding consumer sentiment.
The company saw 75% of market share gains from households earning $100K+.
Notably, Sam’s Club posted an impressive +7% in comparable sales.
The hurricane boosted revenue from stocking up, though some expenses offset gains.

Shares are on track for a record close, currently trading up by $2.27 (2.69%) at $86.34.

Nvidia Earnings Preview: Strong Growth Expected
Nvidia will announce earnings after the close tomorrow, with shares up $6.57 (+4.69%) to $146.69 in anticipation. The company is expected to report:

Adjusted quarterly earnings: $0.74 per share (85% YoY increase)
Revenue: $33.2 billion (84% YoY increase)
Fiscal Q4 sales guidance: $37.7 billion, below the previous estimate of $40 billion
Fiscal Q4 earnings outlook: $0.83 per share, down from $0.88

Analyst Sentiment is overwhelmingly positive, with 90% of analysts recommending a buy. KeyBanc maintains an Overweight rating with a $180 price target.

Key Drivers:

Robust demand for AI infrastructure and Nvidia’s Blackwell AI chips.
Strong growth in robotics, traditional computing, and emerging demand from AI software developers.

Challenges:

Unconfirmed overheating issues with Blackwell servers.
Ongoing supply chain challenges and increased pressure from China hyperscalers to use domestic AI solutions.

Performance Highlights:

Shares are up 195.5% in 2024.
Last quarter saw earnings of $0.68, exceeding estimates of $0.647, with revenues of $30.04 billion.

Atlanta Fed GDPNow for Q4 up to 2.6%

GDP tracker for Q4 rises modestly after data today

The Atlanta Fed GDPNow growth estimate for Q4 rises to 2.6% from 2.5% previously.

In their own words:

The GDPNow model estimate for real GDP growth (seasonally adjusted annual rate) in the fourth quarter of 2024 is 2.6 percent on November 19, up from 2.5 percent on November 15. After this morning’s housing starts report from the US Census Bureau, the nowcast of fourth-quarter real residential fixed investment growth increased from -1.2 percent to 0.1 percent.

US housing starts for October 1 311M vs 1.330M estimate

The US housing starts and building permits for October 2024

Housing starts 1.311M vs 1.330M estimate. Prior month 1.354M last month revised to 1.353M
Building permits 1.416M vs 1.430M estimate. Prior month 1.428M last month.

Building Permits

Privately-owned housing units authorized: 1,416,000 (seasonally adjusted annual rate) vs 1,430,000 estimate
0.6% below revised September rate (1,425,000)
7.7% below October 2023 rate (1,534,000)
Single-family authorizations: 968,000
Authorizations of units in buildings with five units or more: 393,000

Housing Starts

Privately-owned housing starts: 1,311,000 (seasonally adjusted annual rate) vs 1,330,000 estimate
3.1% below revised September estimate (1,353,000)
4.0% below October 2023 rate (1,365,000)
Single-family housing starts: 970,000
Units in buildings with five units or more: 326,000

Housing Completions

Privately-owned housing completions: 1,614,000 (seasonally adjusted annual rate)
4.4% below revised September estimate (1,688,000)
16.8% above October 2023 rate (1,382,000)
Single-family housing completions: 986,000
Units in buildings with five units or more: 615,000

Building permits (-7.7%) and housing starts (-4.0%) remain below year-ago levels in an industry that suffers from not having enough supply.

KC Fed Pres. Schmid: Remains to be seen how far interest rates may fall

KC Fed Pres. Schmid speaking

Remains to be seen how far interest rates might fall
Cuts are an acknowledgment of the Fed’s confidence inflation is on a path to 2% target.
Large fiscal deficits will not cause inflation because the Fed will prevent it, though that could mean higher interest rates
Rates are still somewhat restrictive, but not overly so
The coming tariffs, immigration policies will be relevant to the Fed if the impact employment and inflation
the inflation fight is not done yet

Goldman Sachs sees S&P 500 hitting 6,500 by the end of next year

The firm joins Morgan Stanley in calling for the S&P 500 to hit the 6,500 mark in 2025

Goldman Sachs says that they see the ‘Magnificent 7’ carrying the benchmark index mostly, with the bunch set to outperform as compared to the other index constituents. That being said, they do expect the ‘Magnificent 7’ to only outperform by about 7% – the slimmest margin in seven years.

Adding to upside risks, the firm sees a “friendlier mix” of fiscal policy and a more dovish Fed as helping. However, they do warn that risks remain high for broader US equities going into 2025. And that is due to the threat from Trump’s tariffs and also higher bond yields.

Bank of America says US stock market statistically expensive, raises 2025 price target anyway

Cites potential for shift to cyclical and dividend-yielding stocks

Bank of America says broad market is ‘statistically expensive on almost every metric’

raises year-end price S&P 500 to 6,000
we see limited near-term upside to the cap-weighted S&P 500 and prefer the equal-weighted index, but our bear market signposts — the triggers that typically precede an S&P 500 peak — are not signaling elevated risks of an imminent bear market
on the other hand, the S&P 500 is higher quality, less levered and more asset light compared to prior decades
long-term growth expectations on megacap tech at a record high
sees potential for a market rotation into cyclicals and high dividend-yielding stocks

US DoJ to pressure Google to sell Chrome – break monopoly

Anti trust move

Bloomberg carry the report, saying the US Department Of Justice is to prompt Google to sell Chrome in order to break its monopoly. Top Justice Department antitrust officials have decided to ask a judge to force Alphabet’s Google to sell off its Chrome browser.

The report is carried by Bloomberg, which is gated, but Reuters have ungated info available if you are after more:

U.S. Department of Justice will ask a judge to force Alphabet’s Google to sell off its Chrome internet browser
DOJ will also ask the judge to require measures related to artificial intelligence and its Android smartphone operating system

Canada CPI inflation for October 0.4% versus 0.3% MoM

Canada CPI data for October 2024

Prior month -0.4%
CPI MoM 0.4% versus 0.3% estimate
Core CPI M 0.3% versus 0.1% last monthoM
CPI YoY 2.0% versus 1.9% YoY . Prior month or .6%
CPI Median 2.5% versus 2.4% estimate. Last month 2.3%
CPI Trim 2.6% versus 2.4% estimate. Last month 2.4%
CPI Common 2.2% versus 2.1% last month
CPI BOC Core YoY 1.7% versus 16% last month
CPI BOC Core MoM 0.4% versus 0.0% last month

Commodities

Gold Strengthens as Geopolitical Risks Escalate with Russia’s Nuclear Doctrine Update

Gold’s Safe-Haven Appeal:
Gold has extended its recovery for a second consecutive day, rising to nearly $2,635 in North American trading hours on Tuesday, driven by renewed fears of geopolitical instability. The surge in gold prices follows an alarming update to Russia’s nuclear doctrine, signed by President Vladimir Putin. The revision has escalated fears of further conflict, prompting investors to flock to gold, traditionally viewed as a safe-haven asset during times of uncertainty.

Russia’s Nuclear Doctrine Update:
Putin’s decree revises Russia’s nuclear policy, emphasizing that Russia reserves the right to use nuclear weapons if it faces conventional military aggression that threatens the country’s sovereignty or territorial integrity. The announcement came amid escalating tensions over the ongoing Russia-Ukraine war. Kremlin spokesperson Dmitry Peskov stated that Russia views the U.S. supplying missiles to Ukraine, including ATACMS missiles, as an act of aggression that could lead to a broader conflict, potentially even a third world war.

The revision of Russia’s nuclear doctrine is widely interpreted as a direct response to U.S. support for Ukraine, particularly in light of reports that Ukraine has already used U.S.-supplied ATACMS missiles in attacks on Russian territories. The escalation in rhetoric and military support has stoked fears of further violence and instability, driving demand for gold.

Gold’s Performance Amid Geopolitical Tensions:
Historically, gold strengthens in times of heightened geopolitical risks, and this situation is no different. Gold has recovered nearly 38% of its losses from the first half of November, as investors react to growing concerns over global security. Goldman Sachs remains bullish on gold, forecasting that it could rise to $3,000 per ounce by 2025 due to a combination of increased central bank demand and a potential lift from interest rate cuts by the Federal Reserve.

Market Impact of Trump’s Policies:
Gold’s recent strength also reflects broader market sentiment surrounding potential changes in U.S. fiscal policy. Following President-elect Donald Trump’s victory, market expectations shifted, with the anticipation that Trump’s promised 10% tariffs and tax cuts could lead to higher inflation and stronger economic growth, which might reduce the likelihood of the Federal Reserve cutting interest rates aggressively. As such, gold prices are supported by concerns about inflation and the Fed’s future rate path, particularly if the Fed’s stance becomes more cautious due to Trump’s economic policies.

Nomura’s View on Fed’s Interest Rate Path:
Analysts at Nomura predict that the Fed will likely keep interest rates unchanged in its December meeting, as higher inflation expectations from tariffs may lead to a prolonged pause in rate cuts. This outlook supports the case for gold, as a slower pace of rate hikes would maintain the precious metal’s appeal as a hedge against inflation.

Conclusion:
Gold’s recovery is being fueled by rising geopolitical risks following Russia’s nuclear doctrine update, coupled with growing inflation concerns stemming from potential policy shifts under a Trump administration. With central banks increasing their gold reserves and expectations of a slower pace of rate cuts from the Fed, gold is well-positioned to maintain its upward momentum, with analysts projecting further gains in the coming years.

Oil private survey of inventory shows a large headline crude oil build vs expectations

This is from the privately surveyed oil stock data ahead of official government data tomorrow morning out of the US.

Crude Inventory Data
Crude +4.753 million (analyst exp. +800,000)
Gasoline -2.480 million
Distillate -688,000
Cushing -288,000
SPR +1.4 million

Crude oil futures settled at $69.39

Up $0.23 or 0.33%

The price of WTI crude oil is settling at $69.39. That’s up $0.23 or 0.33% . Technically, the price is closing above its 200-hour moving average at $69.23. The low price on Monday stalled within a swing area between $66.31 and $66.91.

IAEA says Iran has agreed to stop producing near bomb-grade uranium

Crude oil whips around

The IAEA is saying that Iran agreed to stop producing near bomb-grade uranium. The news that sent oil prices down from six $9.61 to a new session low at $68.46. However the price has since rebounded to near mid range and $69.23. That is up about seven cents on the day.

Goldman Sachs forecasts Gold higher amid Trump tariffs risks

Trade tensions, policy uncertainty, and central bank demand key drivers

Goldman Sachs sees gold as a strong hedge against potential risks from Trump-era tariffs, predicting prices will rise further in 2025.

GS highlights gold’s role as a safe haven during heightened Trump trade tensions and tariff increases
current policy uncertainty and recent market consolidation create a favorable opportunity for investing in gold
structural demand from central banks and cyclical factors, like expected Federal Reserve rate cuts, as key drivers

EU News

European shares close lower but off the lows

Russian saber rattling ease from US pre-market levels

The major European indices are closing lower on the day but off the lowest level from the geopolitical concerns from the pre-US opening levels.

The final numbers are showing:

German Dax fell -128.88 points or -0.67% at 19060.32. At session lows the index reached 18812.53.
France’s CAC fell -48.59 points or -0.67% at 7229.65. Session lows reached 7029.91.
UK’s FTSE 100 fell -10.29 points or -0.13% at 8099.03. At session lows the price reached 8052.02.
Spain’s Ibex fell 86.39 points or -0.74% at 11588.41. Session lows reached 11428.30.
Italy’s FTSE MIB felt -433.70 points or -1.28% at 33324.72. At session lows the index reached 32787.77

Eurozone October final CPI +2.0% vs +2.0% y/y prelim

Latest data released by Eurostat – 19 November 2024

Prior +1.7%
Core CPI +2.7% vs +2.7% y/y prelim
Prior +2.7%

Eurozone September current account balance €37.0 billion vs €31.5 billion prior

Latest data released by the ECB – 19 November 2024

There were surpluses recorded for goods (€33 billion), services (€16 billion) and primary income (€2 billion). Meanwhile, a deficit was recorded for secondary income (€14 billion).

Switzerland October trade balance CHF 8.06 billion vs CHF 4.95 billion

Latest data released by the Federal Statistics Office – 19 November 2024

Prior CHF 4.95 billion; revised to CHF 4.94 billion

Here’s the breakdown of the Swiss trade balance for last month:

ECB’s Panetta: It is not blasphemy that rates could go below neutral levels

Remarks by ECB executive board member, Fabio Panetta

If domestic demand remains weak, inflation could fall well below 2%.
The ECB should move to neutral monetary policy stance, or even expansionary if necessary.
Eurozone economic activity remains weak, no turning point in sight for beleaguered manufacturing sector.
The tightening bias in our official description of the monetary stance is no longer necessary.
The ECB should return to more traditional, forward looking approach to monetary policy.
Directional guidance from the ECB would help consumption and investment.
The ECB needs to give more explicit indications of its rate policy intentions.

ECB’s Muller: I don’t see a reason to move in bigger steps now

Remarks from the Bank of Estonia Governor Madis Muller

A 25 bps rate cut in December is likely.
I don’t see a reason to move in bigger steps now.

BoE’s Bailey: We need to watch services inflation very carefully

Comments from the Bank of England Governor before the UK Treasury Committee

We need to watch services inflation very carefully.
Services inflation is still above a level that’s compatible with on-target inflation.
Inflation was lower than expected when the BoE cut rates.
A gradual approach to removing monetary policy restraint will help us to observe risks to the inflation outlook.
The most important part of the budget is how businesses respond to higher employment costs.
Return of inflation to target has been faster than expected.
Not clear how the national insurance rise will play out.
H1 GDP growth was noticeably stronger than expected.
Evidence points to fading second-round effects.
I see a risk of lingering persistence of wage pressures.
Recent evidence has been that inflation has been lower than expected but we don’t know if that will continue.
A gradual approach to rate cuts allows BoE to adjust to evidence.

BoE’s Taylor: Gradual cuts implies 100 bps of easing over the next year

Remarks by Alan Taylor before the UK Treasury Committee.

It’s ok to continue with a gradual pace of rate cuts.
Gradual cuts implies 100 bps of easing over the next year.
This is closely aligned with market curve currently.
That is not necessarily what will unfold, depending on economic conditions.
There are conditions where the BoE can go faster.
Labour market data is key for my view on rate cuts.
Disinflation is unfolding as we would expect.
QE is a tool that needs to be there for a crisis.
QT is moving the BoE in a healthy direction compared to the past.

BoE’s Mann: Forward-looking indicators raising the risk of inflation persistence

Remarks by Catherine Mann before the UK Treasury Committee.

Forward-looking price and wage indicators have been flat and above target for four months, raising the risk of inflation persistence.
Financial markets’ inflation expectations suggest the BoE will not get to a sustainable 2% inflation in the forecast horizon.
Risks to inflation are almost all upside.
I do not use gradual language on rate cuts.
I prefer activist strategy on monetary policy.
It’s important to keep rates on hold, and not pursue a gradualist strategy on rate cuts.
The current stance on monetary policy is not particularly restrictive.
Gradualism causes inflation persistence to drag on for longer.

BoE’s Lombardelli: I see risks to inflation on both sides

Remarks by Clare Lombardelli before the UK Treasury Committee

I see risks to inflation on both sides.
We have seen a fall in services inflation and wage settlements.
Minimum wage comes up as pressure for businesses more than any other pressure.
I am more concerned about upside risks to inflation as costs are higher if inflation gets entrenched.

Asia-Pacific-World News

PBOC widely expected to keep benchmark lending rates unchanged this week

The PBOC will be making its policy decision for the 1-year and 5-year loan prime rates (LPR) on Wednesday

Reuters’ latest survey of 28 market watchers sees all respondents expecting both the 1-year and 5-year LPRs to remain unchanged at 3.10% and 3.60% respectively. A trader at a Chinese bank commented that:

“LPRs were lowered so sharply in October, so it is unlikely to have another cut this month. We may first wait and see the impact of the policy in the short-term.”

PBOC sets USD/ CNY central rate at 7.1911 (vs. estimate at 7.2305)

PBOC CNY reference rate setting for the trading session ahead.

In open market operations (OMOs):

PBOC injects 288bn yuan via 7-day RR, sets rate at 1.5%
126bn yuan mature today
net injection is 162bn yuan

China state planner says has ample room and tools to support economic recovery

The National Development and Reform Commission of the People’s Republic of China (NDRC)

The National Development and Reform Commission of the People’s Republic of China (NDRC) ins the country’s ‘state planner’:

Approved 97 fixed-asset investment projects worth a total of 916 bln yuan in January – October
Expects China’s economy to sustain recovery momentum in November and December
China has ample policy room, tools to support economic recovery

Chinese state media outlet says further RRR cuts are expected this year

China Securities Journal quotes analysts saying further cuts to RRR coming this year

The Reserve Requirement Ratio (RRR) is a central bank regulation that sets the minimum amount of reserves each bank must hold in relation to their deposit liabilities. Its the percentage of total deposits that banks are legally required to keep on hand, either as cash in their vaults or in a reserve account at the central bank.

RBA minutes: Vigilant to upside inflation risks, policy must remain restrictive

Minutes of the Reserve Bank of Australia November 2024 meeting

The Reserve Bank of Australia minutes indicate that the board remains vigilant to upside inflation risks and believes policy needs to remain restrictive.

The board saw no “immediate need” to change the cash rate.
It is not possible to rule anything in or out regarding future changes in the cash rate.
Forecasts are based on the technical assumption that the cash rate will stay steady until mid-2025.
The board considered what might warrant a future change in the cash rate or a prolonged steady period.
The board discussed scenarios where policy would need to stay restrictive for longer or tighten further.
The supply gap might be wider than assumed, necessitating tighter policy.
Rates might need to rise if the board judged that policy was not as restrictive as assumed.
The board has “minimal tolerance” for inflation above forecasts.
The board would need more than one good quarterly inflation report to justify a rate cut.
The board considered scenarios where a rate cut would be justified, including weak consumption.
A sharp deterioration in the labor market or forward-looking data could require an easing of policy.
The board discussed risks from abroad, including U.S. economic policy and China’s stimulus measures.
The outlook for U.S. policy is uncertain, with some scenarios indicating significantly lower global growth and higher inflation.
The outlook for China has been upgraded thanks to stimulus, though the impact on Australia could still be modest.

ANZ forecast a 50bp interest cut from the RBNZ next week

Market expectations are for 50bp also.

ANZ preview the Reserve Bank of New Zealand meeting on November 27. In brief:

We expect a 50bp cut to 4.25% next week. That would be consistent with RBNZ October messaging, economists’ forecasts, and market pricing. Data since the October Monetary Policy Review has been mixed, but no data looks likely to upset the apple cart.
Beyond this meeting, the data will decide, but with the OCR much closer to neutral, our baseline expectation is that the RBNZ will reduce the pace of easing to standard 25bp cuts, to reach a trough of 3.5% in May.

Australian Consumer Confidence, weekly survey, comes in at 86.8 (prior 86.7)

Household confidence in the 12mth economic outlook has risen 10.7pts since early July.

ANZ-Roy Morgan Australian Consumer Confidence weekly survey: 86.8

prior 86.7

ANZ comments:

moving in a narrow range
Household confidence in the 12mth economic outlook has risen 10.7pts since early July
Inflation expectations eased 0.2ppt to 4.7%

Japan finance minister Kato – will continue to take action on excessive FX moves

Kato late to the game today

Japan finance minister Kato

Important for currencies to move in stable manner reflecting fundamentals
Will continue to take appropriate action against excessive forex moves
Absolutely no change to our stance on forex

Japanese Economic Revitalisation Minister Akazawa says crucial to boost pay

Spoke also on the economic package

aiming for cabinet approval of economic package soon
crucial to boost pay for all generations with the package

“BOJ to bid farewell to stimulus era, justify rate hikes in policy review”

The Bank of Japan will release findings of its policy review on December 19

Reuters with this on the Bank of Japan review of its monetary policy. The review will be released on December 19.

Reuters make some assertions on what to expect:

symbolic step towards ending its massive stimulus
While the BOJ has said the outcome of the review will not have direct implications on near-term monetary policy, it will likely include findings and surveys that justify its plan to steadily proceed with policy normalisation.

More at the piece, link here.

Cryptocurrency News

SEC Lawsuit Against Kraken Advances as Judge Denies Appeal

Case Development:
A California federal judge has dismissed Kraken’s appeal to delay the Securities and Exchange Commission’s (SEC) lawsuit, ruling that it would unnecessarily prolong the case. The decision, made by Judge William Orrick, allows the SEC’s claims against Kraken to move forward without further delay.

Howey Test Allegation: The SEC has presented sufficient evidence suggesting that Kraken’s operations, specifically the cryptocurrencies it traded and sold, may qualify as investment contracts under the Howey Test, which could subject the exchange to securities regulations.
Appeal Rejection: Kraken had hoped to appeal an earlier ruling from August that denied its motion to dismiss the lawsuit. The company argued that the SEC’s claims raise significant legal questions about the necessity of formal agreements for investment contracts. However, the judge sided with the SEC, emphasizing that no legal precedent supports Kraken’s view that formal contracts are needed to establish such agreements.

Legal Context:
The SEC’s lawsuit, filed in November 2023, alleges that Kraken failed to register as a securities exchange, broker, dealer, and clearing agency, violating US securities laws. The agency’s stance has been bolstered by prior court rulings against Kraken’s interpretations of securities law. In the ongoing case, the SEC seeks to eliminate several of Kraken’s defenses to streamline the litigation process.

Next Steps:
As the case progresses, the SEC is pushing for further discovery, which will determine whether Kraken’s activities meet the necessary criteria for classification as investment contracts under the Howey Test. This legal framework has long been central to securities law in the US.

Bitcoin Surges to New All-Time High at $94,000, Leaving Ethereum Behind

Bitcoin’s Bullish Performance:
Bitcoin (BTC) has reached a new all-time high of $94,000, surpassing its previous record of $93,483. The cryptocurrency has gained an impressive 40.81% since November 4, the day before the US elections. From the August 5 low during the Japan carry trade unwind, Bitcoin has risen 89.72% and 122.5% for the year, making it a standout performer in 2024. Since breaking above $80K on November 10 and above $90K on November 12, Bitcoin has maintained a solid hold above the $90K mark, trading in a narrow range with only a few fluctuations. Traders now look to the $100K milestone as the next key target.

Ethereum’s Struggles to Keep Up:
Despite Bitcoin’s remarkable rally, Ethereum (ETH) continues to struggle, failing to keep pace with Bitcoin’s gains. On the same day Bitcoin achieved its new high, Ethereum saw a 1% decline, with its ETH/BTC ratio plunging to new lows, a sign of Ethereum’s lagging performance.

Institutional Capital Flows: Bitcoin has greatly benefitted from institutional inflows, especially following the launch of Bitcoin ETFs in January, which have solidified its status as a mainstream asset. Meanwhile, ETH ETFs, launched in July, have failed to replicate the success seen by Bitcoin. This disparity in institutional interest is one factor contributing to Bitcoin’s outperformance.
Solana’s Competition:
Ethereum is also facing increasing competition from Solana (SOL), which has dominated in on-chain trading volumes and captured much of the current meme coin activity. Solana’s low fees and faster transactions have attracted users away from Ethereum, further pressuring ETH’s market position.

Bitcoin’s Brand Strength vs Ethereum’s Struggles:
Bitcoin’s brand recognition and institutional appeal have strengthened significantly, with high-profile endorsements from figures like President-elect Donald Trump and major CEOs of financial institutions. Bitcoin has successfully broken out of the crypto niche to become a globally recognized and trusted asset, while Ethereum continues to lag behind in global recognition and institutional trust.

Outlook for Ethereum:
For Ethereum to catch up to Bitcoin, it must overcome several challenges:

Build a stronger narrative and a global brand.
Increase on-chain activity and improve accessibility.
Compete with institutional capital flows and meme coin activity to regain market momentum.

Conclusion:
Bitcoin’s dominance in the market is clear as it continues to set new highs, while Ethereum faces significant challenges in attracting institutional capital and growing its on-chain activity. With Solana also emerging as a strong competitor, Ethereum needs to address its brand strength and activity levels to close the gap with Bitcoin.

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Round up of today’s market news

ByBilals Tech