Bitcoin roars above $ 50,000. Buckle up for the ride.

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The time of dreams

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Bitcoin is back above $ 50,000 for the first time since May. Crypto bulls naturally celebrated the milestone, and there is optimism that the world’s largest cryptocurrency could reach new all-time highs and beyond.

A word of warning, however. The coin path so far this year is a stark reminder, if needed, of the insane volatility of Bitcoins.

After going from $ 30,000 to its April peak of nearly $ 65,000 in just over three months, Bitcoin lost more than half of its value over the next three months. The rebound from under $ 30,000 to $ 50,000 took a little over a month.

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Le Quotidien du Barron

A morning briefing on what you need to know in the day ahead, including exclusive commentary from the editors at Barron’s and MarketWatch.

A flurry of bad news was behind the Bitcoin collapse: crackdown on Chinese crypto, other regulatory pressures, and environmental concerns. These problems have not gone away at all. The Wall Street Journal this weekend described the great mining migration of crypto miners to relocate outside of China. But sentiment quickly changed, helped by upbeat comments from top funders including Tesla CEO Elon Musk, Twitter CEO Jack Dorsey, and ARK Invest CEO Cathie Wood, as well as the growing adoption of Bitcoin around the world.

Another key factor is the comments from Securities and Exchange Commission Chairman Gary Genslers pointing to the potential path for Bitcoin ETFs, albeit under strict rules. PayPal’s decision on Sunday to launch its cryptocurrency service in the UK, the first country outside the US, is just the latest piece of good news that is building momentum.

Callum keown

*** This week’s Barrons Streetwise podcast, columnist Jack Hough addresses listeners’ questions, including whether investing has fundamentally changed. Listen now.

*** US hires private airlines to help evacuate Kabul

The U.S. government on Sunday requisitioned planes from six commercial airlines to help evacuate people from Afghanistan, illustrating the challenges Washington faces after the Taliban took control of the country.

The US Department of Defense said a total of 18 planes from American Airlines, Atlas Air, Delta Air Lines, Omni Air, Hawaii Airlines and United Airlines would help transport evacuees from airports. transit or US military bases, around the world, after they have been evacuated from Kabul. Commercial planes will not fly to Kabul’s Hamid Karzai International Airport, the statement said. They will help evacuate U.S. citizens and personnel, special immigrant visa applicants, and others at risk from Afghanistan. President Joe Biden said in a speech at the White House on Sunday afternoon that airlines had voluntarily signed up for the so-called Civilian Reserve Air Fleet program, mirroring the Berlin airlift after World War II.

Whats Next: The Pentagon said it did not foresee a major impact on private airlines from the command, which marks the third time the CRAF has been activated, after being used in 1990/1991 and 2002 / 2003 during the first and second Iraqi wars.

Pierre Brianon

*** House Democrats remain divided on vote on infrastructure

Nine centrist Democratic representatives remain at an impasse with House Speaker Nancy Pelosi over when to vote on the roughly $ 1,000 billion infrastructure bill, threatening his intention to pass it in tandem with a budget framework of 3.5 trillion dollars.

The House of Representatives returns to Washington, DC on Monday. The Group of Nine urged Pelosi to push forward the two proposals separately and vote on the first bill immediately. Let’s achieve a great victory, restore the faith of the Americas that despite our differences, we can make a real difference, said Rep. Kurt Schrader (D., Oregon). Other Democrats, including Pelosi, are confident the House is moving both plans forward by voting on the bigger package first. This could increase the pressure on centrist Democrats who have questioned the cost of the bigger bills. Pelosi cannot lose more than three Democrats in these votes. She warned Democrats on Saturday night that any delay in passing the budget resolution threatens the timeline for achieving historic progress and the transformative vision Democrats share, The Wall Street Journal reported. The $ 3.5 trillion budget would expand the country’s safety net through subsidized child care, paid family leave, expanding health insurance to cover dental, vision and hearing care, universal preschool, free community college and other measures.

What’s next: Pelosi has scheduled a Monday night vote to move both the infrastructure bill and the fiscal framework forward, saying in his letter that the House aims to pass both bills by October 1 .

Janet H. Cho

*** What to expect from the Jackson Hole Federal Meeting later this week

The Federal Reserve has said it will meet virtually this week for its 2021 Economic Policy Symposium, which will typically be held in Jackson Hole. The Kansas City Fed cited the recently high level of health risk from Covid-19, including a high risk of transmission in Teton County, Wyo. Dozens of central bankers, policymakers and economists had planned to meet in person.

The Fed’s decision to go online for the second year in a row offers real-time reflection on how officials view the economy’s biggest wildcard. Economists at Oxford Economics say their recovery tracker, a mix of about two dozen indicators, has stalled as consumers become more cautious and overall mobility declines. Since the federal open market committees met last month, the July jobs report showed a 943,000 jump in non-farm payrolls, while the unemployment rate fell to 5.4%. But consumer confidence, retail sales and housing starts were all weaker than expected. Fed Chairman Jerome Powell acknowledged the risk of the Delta variant and future changes in the economy last Wednesday. As long as Covid is unleashed there, as long as there is time and space for new strains to develop, no one is really safe, finally, he said. Powell will deliver his opening speech Friday at 10 a.m. EST. His speech will be broadcast live on the Kansas City Fed’s YouTube channel as well as the Barrons website.

What’s next: Investors will watch Powells’ opening speech for any update on the Fed’s plans to cut the roughly $ 120 billion in monthly treasury and asset-backed securities purchases mortgage loans he launched in response to the pandemic. Last month, Fed officials were divided over when and how to start cutting back on those purchases.

Lisa Beilfuss and Janet H. Cho

*** FDA to give full approval for Pfizer and BioNTechs vaccines on Monday

The Food and Drug Administration could fully approve the Pfizer – BioNTechs Covid-19 vaccine this week, opening the door for more employers and universities to demand vaccinations and potentially boost vaccinations for people with safety concerns coronavirus vaccines.

That full approval could come as early as today, as regulators scrambled to speed up an unofficial approval timeline around Labor Day, according to multiple reports citing people familiar with agency planning. This would mean that 1.3 million US military personnel need to be vaccinated. Defense Secretary Lloyd Austin told troops earlier this month that they are due to be vaccinated by September 15, or as soon as the FDA grants full approval for the vaccine, whichever comes first. The city of San Francisco has told its employees that as soon as the vaccines are fully approved by the FDA, they will need to get the vaccine or lose their jobs. About 750 colleges and universities in the United States require vaccines from at least some students or employees. As of Sunday, 170.8 million Americans were fully vaccinated, or 51.5% of the total population, according to the Centers for Disease Control and Prevention. The United States reported 128,902 new coronavirus infections and 1,001 deaths on Saturday, according to Johns Hopkins University.

And then: Once their vaccine gets full approval, Pfizer and BioNTech plan to ask regulators to approve a third dose as a booster. Full approval would make the vaccine eligible for off-label prescriptions and allow the company to begin marketing it to doctors, providers and the public, the Wall Street Journal reported.

Janet H. Cho

*** UK stocks dumped in the spotlight after Apollos offer on Sainsburys grocery store

Reports that U.S. private equity fund Apollo could lead J. Sainsbury’s reign sent shares of Britain’s second-largest supermarket over 11% on Monday. Apollo is already in a bidding battle with a rival private equity firm for control of Wm Morrisons, another retailer.

The Sunday Times reported that Apollo remains committed to the UK retail sector after failing to take control of Asda, once owned by Walmart, earlier this year. So far, his interest in Sainsburys was exploratory. Shares of other UK retailers rose following Sainsburys on Monday morning, Tesco and Marks & Spencer up around 2% in a UK market up 0.4% as measured by the FTSE 100. Apollo stands For now, focuses on a battle for Morrisons, where he is eager to join a SoftBanks Fortress group consortium to wrest control of the Clayton Dubillier & Rice buyout fund.

Whats Next: The UK stock market has massively underperformed European and US markets both this year and over the past three years. Investors who believe the European and US markets are now fully valued may view UK stocks with a fresh eye.

Pierre Brianon

*** MarketWatch wants to hear from you

In this week’s Big Move column, a reader asks: I am 60 years old and planning to pay off the $ 250,000 mortgage on my house. I have $ 1 million in company stock and $ 1 million in my 401 (k), and I plan to work until age 67, when I will receive a pension of $ 8,000 per month. Do I have to sell the shares of the company to pay for the house?

A MarketWatch correspondent will answer this question shortly. In the meantime, send any questions you want answered to [email protected].

***

Newsletter edited by Matt Bemer, Camilla Imperiali, Steve Goldstein, Rupert Steiner

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