Market Update - Feb. 9th 2024

This week, we take a step back on the macroeconomic landscape.

The U.S. economy appears to be transitioning smoothly, reducing the likelihood of a March rate cut. However, persistent high interest rates raise worries about U.S. regional banks' stability.

And the crisis in China, exemplified by Evergrande's liquidation, impacts Chinese real estate equities, reflecting ongoing concerns about the heavily leveraged property market.

For investors, this uncertain context could mean a need for cautious navigation and diversification strategies, and we currently witness digital assets being increasingly recognized as a powerful tool for this purpose.

We've seen significant inflows in the Spot Bitcoin ETFs in the U.S. Despite a price dip due to sell-offs from the Grayscale Trust Fund, their approval signals a pivotal moment for crypto, suggesting a shift in regulatory attitudes. Bitcoin is increasingly seen as a hedge against monetary policy risks, gaining support as access to this asset class improves.