Happy New Year’s to all my readers.
A quick update. Bitcoin has spent the entire 2017 over $1,000 so far.
As global Forex markets are trading today, the Chinese yuan is trading near a 52-week high, which for the Chinese is a weakening of the currency. As some of the young middle class see their currency being hit on purchasing power, the move into the crypto-currency to sustain wealth and transfer capital into dollars is growing.
On Jan. 2 in morning trading in the US eastern time zone has bitcoin trading at $1,025.22.
Bitcoin has risen roughly 65% from the Feb. 2016 lows over the last year. Over that time the yuan has depreciated 7.2% from its 2016 lows.
The key to this latest run up in bitcoin is the strength of the dollar compare to other currencies.
This could be a problem for the Trump Administration as the struggle for keeping jobs in America runs headlong into increasing costs for our exports.
I will not get a read on equity futures for the first trading day in the US until later on when they open, but suffice it to say I am looking for stocks to take a leg down for the beginning part of the year based on pent-up selling on the premise of lower capital gains.
Time will tell.