RABIT Weekly news (W4 Nov 2021)
- Due to inflation and tapering, interest rates on government bonds have skyrocketed, which has in turn brought about take-profit sales.
- As confirmed cases of covid soar in Europe, several countries have reinstated lockdown.
- Sharp drop in prices due to the WHO emergency meeting on the new COVID variant found in South Africa (-10%)
- Developments from 2020. 03. 12 through June
- Market had already seen collapses as severe as -50% in a day as WHO declared COVID as a pandemic
- Sharp rise in high-yield bond interest rates and growth in corporate cash holdings brought about a selling spree
- In turn, cryptocurrency has seen a mass buying streak as the U.S. Federal Reserve cut interest rates and made acquisitions in corporate bonds.
- But in June 2021, the Fed made announcements to sell off its corporate bond holdings.
- Volatile market responses due to the fact that the new strain was found in these circumstances
- Additional reports show concerns may have been exaggerated
- New strain was shown to be asymptomatic in the inoculated and while highly contagious, presents with mild symptoms overall
- Mass buying spree starting 1pm EST on November 28th, 2021 (+7%)
- 5 hours later, almost all indexes saw a rebound as the U.S. futures market opened
- MicroStrategy has made 7000 BTC in additional purchases in the down market
- Currently owns 120000 BTC in total
