United States banks can now officially hodl Bitcoin.
The SEC's Accounting Bulletin No. 121 required banks to treat Bitcoin as a liability, making it costly and impractical. Today’s repeal means banks can buy and custody Bitcoin, like other assets. Source: Documenting Bitcoin
BREAKING: The Bank of Japan boj raises interest rates by 25 basis points to their highest level since 2008.
The Bank of Japan hiked rates by 25 basis points Friday to 0.5%, bringing its policy rate to its highest level since 2008, as it seeks to normalize its monetary policy. The move comes in line with expectations from CNBC’s survey from Jan 15-20, which saw an overwhelming majority of economists predict a hike. In its statement, the BOJ revealed that the decision was a 8-1 split, with board member Toyoaki Nakamura dissenting. Nakamura said the central bank should only make change in policy after confirming a rise in firms’ earning power from reports that would be out by the next monetary policy meeting. Following the decision, the Japanese yen strengthened 0.3% to trade at 155.61 against the dollar, while country’s benchmark Nikkei 225 stock index was slightly up. The yield on the 10-year Japanese government bonds rose 1.7 basis points to 1.222%. Announcement is pretty much in-line with market expectations - no big surprise. Source. The Kobeissi Letter, CNBC
Will the National Digital Asset Stockpile only be denominated in bitcoin?
One week ago, the NY Post reported that President Trump is considering "prioritizing digital coins founded in the US.” This would include coins like Solana, USDC, and Ripple. Source: The Kobeissi Letter
“Far more money has been lost by investors in preparing for corrections, or anticipating corrections, than has been lost in the corrections themselves.” - Peter Lynch
Source: J-C Parets
According to BofA, we've just seen one of the largest month-over-month allocations to European equities on record.
Is this signaling a European comeback, or simply a rotation ? source : BofA
Deutsche Bank recently updated their Trump tariff inflation forecasts as shown below:
If the 25% tariffs on Canada/Mexico have a 50% pass-through, PCE inflation would rise 80 bps. A 75% pass-through would add 110 bps to PCE inflation. The Fed won't like this. Source: The Kobeissi Letter
The BTFP, introduced under Biden, acted as a lifeline, letting regional banks trade toxic, low-yield debt for loans at par value, disguising their insolvency.
Now drained, what will happen to the program? Could this put the regional banking system at risk? Source: FRED, The Coastal Journal
Bear markets pale in comparison to bull markets, both in market movement and duration.
Remember this chart during the next - and inevitable - correction or bear market. Source: Peter Mallouk
