Risk appetite is eroding across all asset classes.
Bitcoin’s recent break through a crucial support level has heightened fears that the cryptocurrency sell-off will continue. Hims & Hers, a company in equities that sells weight loss drugs, has sparked a war of prices, causing Big Pharma to tremble.
Commodities have been under renewed pressure after gold and silver fell sharply following a volatile trading week.
Saudia is weighing a massive aircraft order which could change the global jet market.
Bitcoins’ $67K breakdown
Bitcoin is still below $67,000, but technical analysts say the bottom hasn’t yet been reached.
A “perfect storm” macro-headwinds is driving the sell-off, including Treasury Secretary Bessent’s rejection of a cryptocurrency bailout, ETF withdrawals that are relentless, and forced leverage liquidations of over $16 billion.
The next floor for chart watchers is the zone between $62,000 and $65,000.
The 200-week average is under attack and the sentiment has shifted to “extreme fears”. This lack of liquidity on the buy side means that the correction still has room to grow.
Hims & Hers launches a price war on weight loss products
Hims & Hers has just destroyed the GLP-1 price model.
They are not just undercutting Novo Nordisk, but also threatening the moat of Big Pharma.
It’s a direct attack on Novo’s recently launched oral Wegovy which costs nearly $200, even after discounts. Novo’s shares fell 6% instantly. Investors saw the danger.
Hims believes that, as consumers become tired of insurance obstacles and scarcity, they will turn to an option where cash is paid, which costs less than the cost of a gym membership.
It’s about to become very nasty in the regulatory battle over “compound” drugs.
Commodities are facing another selling off
The gold market continues to be volatile, and the price of the metal has fallen back in the red.
Gold spot lost momentum after briefly reaching the $5,000 mark. It is now trading down by 0.8%, or $4,926 per ounce.
The futures contract for delivery in April mirrored this weakness. Prices hovered around $4,942 following a volatile session which saw the prices fluctuate by more than $200.
The silver, on the other hand, suffered the most.
Metal prices plummeted by 13% to $73.60 per ounce. This effectively ended the rally that had taken place earlier this week.
The $4,700 to $ 4,800 gold zone is now a crucial line for traders. Failure to maintain this floor may signal the continuation of the correction.
Saudia eyes historic fleet expansion
Saudia Airlines has begun negotiations with Airbus and Boeing for a possible blockbuster deal that could involve at least 150 aircraft.
To support Vision 2030 and its aggressive tourism goals, the airline plans to purchase both narrowbody and largebody aircraft.
The deal will surpass the previous record purchase of 105 Airbus aircraft in 2024.
Although the talks are still in their early stages, they could have a massive impact on order books.
Riyadh Air, meanwhile, is looking for 50 widebodies to help it dominate the skies in Saudi Arabia.
The post Evening Digest: Bitcoin Crash, Weight-loss Drug Price War, Saudia’s Fleet Expansion may change as new developments unfold
