First, given that gold’s above-ground market value is $19 trillion, the majority, around $17 trillion comes from the network of holders who value gold for its non-confiscatability.
Second, just like gold, bitcoin cannot be confiscated by monetary inflation or banking system failure (Chart 4). Additionally, and unlike gold, it is difficult for the state to confiscate it by outright expropriation. Yet bitcoin, with a market value of $1.5 trillion comprises less than 10 percent of the total market for non-confiscatable assets. As bitcoin’s share of this market increases, and the supply of bitcoins reaches its upper limit, bitcoin’s price has substantial upside.
The S&P 500, Nasdaq Comp and Dow Jones closed at record highs on Wednesday after strong corporate earnings reports from tech stocks. Large caps and small caps advanced: S&P 500 (+0.61%) vs. Russell 2000 (+0.42%). MSCI Emerging Markets (EEM) and MSCI EAFE (EFA) added 0.25% and 0.08% respectively.
Market News:
"Federal Reserve Chair Jerome Powell said the economy looks better now than it did when the central bank began cutting interest rates in September, which means the Fed can move more slowly in reducing borrowing costs." Source: WSJ
"Paul Atkins, a veteran financial regulator and a fixture in Washington’s conservative financial circles, is President-elect Donald Trump’s choice to lead and possibly overhaul the US Securities and Exchange Commission. Trump picked Atkins to replace outgoing Chair Gary Gensler, according to a statement posted on Truth Social. Gensler has said he plans to depart on Jan. 20." Source: Bloomberg
"Federal Reserve Bank of St. Louis President Alberto Musalem said it may be appropriate to pause interest-rate cuts as soon as this month, emphasizing incoming data will guide his decision.
"Private payrolls growth was less than expected in November, reflecting a slowing labor market, according to a report Wednesday from ADP. Companies added 146,000 jobs on the month, below the downwardly revised 184,000 in October and less than the Dow Jones estimate for 163,000." Source: CNBC
"The figures are now in for consumer spending on Cyber Monday, the third big online spending day — alongside Thanksgiving and Black Friday — in the first critical week of the holiday shopping season. On Monday, as many U.S. consumers returned to work after the long weekend, online shopping continued to power ahead spurred by big discounts of as much as 40% on average for some items. Adobe said that shoppers spent $13.3 billion online in the U.S. on the day. Salesforce has some slightly more sobering figures. It said that U.S. consumers spent $12.8 billion, while global spending was $49.7 billion." Source: TechCrunch
Politics/Geopolitics:
US President-elect Trump's Middle East envoy met the Qatari and Israeli PMs in a push to reach a Gaza ceasefire deal before inauguration, while Qatar has resumed its role as a key Gaza mediator and the Hamas negotiating team is expected to return to Doha to facilitate talks. It was separately reported that Trump's adviser cited by Axios said Trump wants to implement a Gaza ceasefire deal ASAP without delay and before January 20th.
Russia reportedly fired missiles from its bases in Tartus, targeting Syrian rebels near Hama, according to a journalist via X.
North Korea-Russia comprehensive strategic partnership treaty came into force, according to KCNA.
US senior cyber security official said there is a risk of ongoing compromise from ‘Salt Typhoon’ hackers and the White House made tackling the hackers a priority of the federal government, while the official noted that Chinese access to Americans’ telecommunications was potentially broad.
