PANews reported on November 7th that, according to a Citibank report, Bitcoin's recent weak trading pattern may be a warning sign of a weakening Nasdaq 100 index. The analysis points out that the US Treasury's cash restructuring and a reduction of approximately $500 billion in bank reserves have led to a liquidity crunch, suppressing the performance of Bitcoin and other risk assets. However, as the Treasury's cash balance nears the end of its restructuring, liquidity may improve, driving a year-end rebound for Bitcoin and the stock market. Furthermore, Citigroup noted that while the AI boom has supported the stock market, investors are skeptical about the returns on their massive AI investments, while soaring hardware costs and supply constraints are raising concerns. Tech giants Meta and Alphabet have raised tens of billions of dollars through debt financing to build data centers, a shift from cash to debt reminiscent of the dot-com bubble, but current corporate balance sheets are more robust. The report argues that this debt expansion reflects more opportunity than pressure, but it may not necessarily be beneficial for bondholders.

Bullish
0

Bearish
0