Rising Inflation and the implications. Is Palantir stock ready to hit $100?
The BITCOIN halving is near - what to expect..
🚀Dear Valued Subscribers,
Welcome to another exciting week filled with compelling topics and investment insights. In this newsletter, we're delving into key areas that have been making waves in various markets. Here's a sneak peek into the topics we'll be exploring:
Rising Inflation: Implications for Federal Reserve Rates
The Bitcoin Halving Unlike Any Other Is Almost Here
Decentralized Social Media: The Next Big Sector In Crypto?
Palantir Stock Poised For BIG Growth In 2024
So folks, strap in as we have a lot to cover as we dive into the materials for this week's newsletter!Â
Rising Inflation: Implications for Federal Reserve Rates
Overview Of The March Inflation Data
Inflation, the increase in prices over time, has been on the rise, impacting our economy. In March of this year, inflation continued its upward trend compared to the previous year. Fresh data from the Bureau of Labor Statistics revealed that prices rose by 3.5 percent from March 2023 to March 2024, slightly higher than the 3.2 percent increase noted in February. Additionally, prices saw a 0.4 percent rise from February to March alone.
This uptick in inflation suggests that the Federal Reserve is unlikely to cut interest rates in the coming months. Typically, the Federal Reserve adjusts interest rates to control inflation and promote economic growth. Though Powell had suggested Rate Cuts in 2024, this is starting to look less and less likely, at least for the first half of 2024. With inflation on the rise, the FED may choose to maintain current interest rates to prevent further escalation of prices.
The primary drivers of this recent inflation increase are housing and energy costs. These factors accounted for more than half of the overall rise in prices. Rent costs, for example, increased by 0.4 percent in March, although this was a slight improvement over February. Nevertheless, rent costs remain significantly higher, up by 5.7 percent compared to a year ago.
Federal Reserve Chair Jerome H. Powell acknowledged the challenge of addressing inflation. He likened it to navigating a bumpy road, as managing rising inflation can be quite tricky to navigate because there are a lot of unexpected factors that can occur. Powell emphasized the need for caution and careful consideration when making decisions regarding monetary policy in the face of rising inflation.
How To Approach This Economic Data:
What does this mean for the average consumer? Well, it's essential to understand that as inflation rises, the purchasing power of your money decreases. This can impact your budget and overall financial well-being. While the Federal Reserve works to manage inflation, it's important for individuals to stay informed and adjust their financial strategies accordingly.
So to summarize, the recent rise in inflation underscores the challenges facing the economy. As we observe these trends, it's crucial to remain vigilant and adapt to the changing economic landscape. While the Federal Reserve grapples with the complexities of inflation, individuals can take proactive steps to mitigate its impact on their finances.
Bitcoin Update Leading Into The Halving on April 20th
A Halving Like No Other:
When we compare the conditions surrounding Bitcoin leading into this halving with its previous ones, it's clear that we're witnessing something unprecedented. Firstly, Bitcoin shattered its all-time highs before the 2024 halving, marking the first time EVER that it has achieved this milestone pre-halving.
Having been involved in crypto for over a decade, I can attest that the current mainstream adoption surpasses anything I've seen before. It began with the approval of ETF filings, which essentially legitimized Bitcoin as an asset in the eyes of major institutions.
The early attainment of all-time highs can be largely attributed to the significant players entering the space. But what truly excites me is the supply dynamic that occurs during a halving. With a sharp drop in selling pressure from miners, the supply of Bitcoin becomes scarcer. Historically, this, coupled with increased demand, has propelled Bitcoin into parabolic runs during bull markets.
What makes this cycle particularly special is the unprecedented demand from institutional and retail investors alike. Take the accessibility provided by Bitcoin ETFs, for example. In the past, traditional investors hesitated due to Bitcoin's perceived complexity. Now, these same investors have easy exposure to the asset, with their asset managers even able to trade it on their behalf. This accessibility will bring millions of new participants into the space.
Needless to say, I couldn’t be more excited about the next several months for Bitcoin.
Now, let’s swiftly assess Bitcoin's current standing…
Understanding The Current Price Action For Bitcoin:Â Â
Since January of this year, Bitcoin has had an incredible run upwards of over 90% to and through all-time highs. While it's easy to get extremely euphoric on the way up, getting worried or scared when price action cools down is equally as easy - if not easier…
Since setting its new all-time high just under a month ago, Bitcoin has cooled off. What I mean by this is that Bitcoin has started to trade within a clear consolidation zone, which simply means that it has been range bound between support and resistance.Â
Typically when this happens after an up move, it points to further upside to come. This is because price is building up, as it continues to consolidate. Here is the consolidation zone we’re watching right now:Â
I have always urged people to remain neutral during consolidation, as we don’t want to get too bullish or too bearish too early. While I can’t definitively say whether it's going to breakout in either direction, my bias is slightly shifted in favor of new highs in the short-term.Â
With a bullish event like the halving coming up, and consolidation forming on the way up, momentum seems to be in favor of the bulls. My bias aside, we can be prepared for either scenario.Â
If Bitcoin breaks down from this consolidation pattern, it has a technical target of $52,000. While this seems dramatic, we have seen a 30% correction following the halving before, so we definitely shouldn’t rule this possibility out. Additionally, this would create the last great buying opportunity before Bitcoin starts shooting up again.Â
On the flip side, an upside breakout of this pattern has a target of about $80,000, which of course would be a new all-time high again.Â
For now, all we can do is wait and see. I’ll continue to keep a close eye on Bitcoin so I can let you know as soon as there’s updates!
Leading Decentralized Social Blockchain Sees 400% Increase In Daily Active Users… But Why?
What Is Farcaster?Â
Farcaster, a decentralized platform for social media applications, positions itself as the catalyst for the next generation of decentralized social media platforms. Recently, it garnered attention with a remarkable 400% surge in daily active users, signaling a potential shift in the landscape of emerging crypto sectors. To comprehend the significance of this surge, let’s take a look into the factors that are likely behind it.
What Caused User Activity To Surge?
The surge in daily active users closely followed the introduction of a groundbreaking innovation known as "Frames'' on its Wapcast app. Warpcast, built on the Farcaster blockchain, became the focal point due to its ability to mint NFTs, conduct transactions, claim tokens, and access external blog posts seamlessly within the app. These functionalities, previously lacking in Farcaster's applications, were now seamlessly integrated, igniting curiosity and interest among users.
The incorporation of these pivotal features into the application fundamentally transformed the user experience, enticing users with the potential that the platform now offered.
Is This A Major Crypto Narrative In The Making?Â
So, why should we be paying attention to Farcaster? As an experienced investor, I've observed that interest sparked by innovative upgrades to promising concepts often heralds the onset of a new narrative gaining traction. If this surge in usage and innovation on Farcaster persists, it could mark the emergence of a significant narrative, catching the public's attention seemingly out of nowhere. Yet, by recognizing these early signs, we position ourselves to embrace and capitalize on this emerging trend.
I will continue to monitor the User Activity on this network, and update you if it continues to progress…
Reasons Why Palantir Stock (PLTR) Will Continue To Grow In 2024!
Overview:Â
2023 was a MASSIVE year for Palantir, as it gained over 200% during its peak in 2023, and closed a really strong year closing 2023 up 167.45%. Thus far in 2024, it is currently up 30%, but has been up as much as 60% in 2024. Despite its current pullback, many analysts believe that PLTR will continue to surge higher.Â
I know many people have voiced concern with its recent pullback, however, I think it is necessary if anything, and shouldn’t be cause for any real concern. Anything that runs as much as PLTR has will have healthy corrections along the way. Simply put, pullbacks are caused by earlier investors taking profits, as well as whale investors removing some of their risk. Due to its very strong fundamentals, I believe that PLTR will rebound swiftly, and continue to break its local highs.Â
To understand why I believe that the fundamentals are extremely strong for PLTR, let’s take a look at some of the most recent accomplishments and developments for Palantir.
The Fundamentals:Â
Here are key factors contributing to why Palantir stock is poised for a massive 2024:
1. Q4 Earnings Surge: Palantir's recent Q4 earnings report showcased an impressive 70% growth in its U.S. commercial business, signaling a strong demand for its data analytics platforms. Moreover, the company raised its 2024 forecast, indicating a bullish outlook for the year ahead.
2. Strategic Partnerships: The strategic partnership between Palantir and Oracle is poised to be a game-changer, particularly in driving international commercial and government growth. This collaboration opens up new avenues for market penetration and revenue generation.
3. Anticipated Q1 Earnings: Analysts anticipate Palantir's Q1 earnings to exceed expectations, further bolstering investor confidence. Despite potential turbulence in the near term, the company's solid performance sets the stage for continued stock appreciation.
In conclusion, Palantir's strong fundamentals, paired with strategic partnerships and optimistic forecasts, position the company for remarkable growth in 2024 and beyond. Despite short-term uncertainties, investors may find Palantir stock an enticing prospect for capitalizing on the evolving data analytics landscape.