The markets are oscillating between anxiety and ambition.
Elon Musk plans a moonshot merge that could redefine the next IPO in tech, while Washington prepares for a Fed shake-up which threatens independence of central banks.
Commodities flash speculative over-exuberance as copper surges and cryptos crack under the pressure of capital flight.
Today’s headlines are a testament to the fact that volatility has returned and confidence is rapidly eroding.
Musk’s Space Play gets a Tech Boost
Elon Musk has a bold plan: merge SpaceX and xAI, before he takes the rocket company to public in 2019.
Reuters reported the exclusive Thursday, citing Nevada Corporate Filings dated 21 January that suggests the deal is already in motion.
Imagine Starlink, Grok and Falcon rockets under the same roof.
Musk plans to place AI data centers into orbit and reduce computing costs through solar energy.
SpaceX alone is worth over $800 billion, and xAI has a value of $230 billion. The merger may propel Musk’s next IPO to the trillion-dollar club.
The final round of the Fed Chair Game has begun
Trump will drop the hammer on next week when he names the new Fed chairman to replace Powell after his term ends in May.
BlackRock’s Rick Rieder leads the betting pool at 42-43 percent, followed by Kevin Hassett as NEC chief, Christopher Waller as current Fed governor and Kevin Warsh.
Trump is as blunt as ever, “unacceptably” high rates require 2-3 points reduction. It’s no longer about neutral policy.
It’s a real political clash: Powell is already under a false DOJ investigation, and Trump’s zealous rate-cutting will be a further blow to the Fed’s autonomy.
Trump’s unpredictable nature makes him an unpredictable candidate. Wall Street is bracing itself for volatility as soon as he makes his announcement.
Copper tops $14,000
The London Metal Exchange saw copper prices jump 11% on Thursday, the largest single-day increase since November 2008.
The madness was caused by speculation and short-covering, but the truth is that physical demand for Chinese goods, which are the largest consumers in the world, has been incredibly low.
Yangshan’s premium has fallen to $20/ton – the lowest level since July 2024.
Strategists sound the alarm after bearish traders were beaten. Anonymous traders complained that “this isn’t sustainable”.
While miners are sitting on large inventories, speculators have piled in to take advantage of weak dollar dynamics.
The Lunar New year could deflate this. Marex’s Alastair Muro made a comparison to 2006. Same move, the same crash pattern.
Bitcoin falls below $84,000
Bitcoin fell 6.4% Thursday to $83,383 – the lowest since November. This was due to $1.137 Billion in Bitcoin ETF withdrawals across five days.
Gold was the killer. The Fed’s decision to hold rates, coupled with fears over rare earth tariffs and Iran tensions drove traders away from gold.
Call options are now 97% out of the money, resulting in a loss of $319 million within hours.
The technical collapse was brutal. MACD confirmed a bearish crossover, the price is 20% below 200-day EMA and RSI reached 35. Support’s crumbling.
If $79,000 to $80,000 fails, analysts are looking at $74,000. It’s not speculation any more; this is capital rotation towards safety.
The post Evening Digest: Bitcoin Slide rattles Markets, Trump’s Fed Choice, Musk’s Bold Move may be updated as new developments unfold
