Last week, Jerome Powell, the Chair of the U.S. Federal Reserve, stated in a New York Times interview that Bitcoin is akin to “digital gold.” With gold’s market capitalization at approximately $9 trillion, Bitcoin’s finite supply—capped at 21 million coins—positions it similarly in terms of scarcity. However, a key distinction lies in their histories: gold has been a trusted reserve asset for centuries, while Bitcoin has only been around since 2009 (or since August 2008 when bitcoin.org was registered).
In a related note, Trump commented in an NBC interview yesterday that he would not remove Powell from his position until his term expires in May 2026. This statement marks a departure from earlier campaign rhetoric and suggests a maturation in Trump’s approach to governance.
Trump’s latest appointment of David Perdue as Ambassador to China reflects a more business-oriented and transactional approach towards U.S.-China relations. Meanwhile, the Hang Seng Index’s December contract has regained the 20,000 mark during the Asian trading session.
As the Federal Reserve enters a blackout period—meaning no Fed officials will make public comments until the upcoming FOMC meeting—attention turns to the Consumer Price Index (CPI) report expected on Wednesday. Last week’s November payroll figures were considered “Goldilocks” numbers: solid enough to indicate economic strength but not so robust as to derail the Fed’s easing path.
In corporate news, major earnings reports this week will come from Oracle, Adobe, and Costco.
In the Middle East, while there was a sense of peace following the Israel-Hezbollah ceasefire, significant developments occurred over the weekend with the fall of Bashar Al-Assad’s 50-year regime in Syria. The implications of this shift will be closely watched. Additionally, WTI crude oil prices have risen by 15 basis points since Friday, now trading at $67.80 per barrel.