Opening Bell: Everyone's losing on bitcoin
Bitcoin's all over the headlines, but for a very different reason than just a few months ago. Far fewer conversations today are about riding the token to the moon, since it's as close to Earth as it's been since December 2020.
I'm Phil Rosen, and it'd be my pleasure to take you on a tour of some of the biggest bitcoin losers on the market right now.
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1. Bitcoin is weighing on some corporate balance sheets, as the token's precipitous fall these last few days has amounted to some serious losses for well known companies, at least on paper.
Take Elon Musk's Tesla for example. According to the most recent filings, the EV-maker owns an estimated 42,000 bitcoins, and it is looking at unrealized losses of nearly $400 million.
Or, even more dramatic, consider Microstrategy, which owns 129,219 bitcoin. It has an estimated unrealized loss of about $1.1 billion.
And El Salvador, which made bitcoin legal tender in September, owns 2,301 bitcoins. Since its first purchase, bitcoin has shed roughly 50% of its value (although the nation's finance minister doesn't seem concerned).
Crypto's meltdown is a "tail wagging the dog" moment. At least that's how veteran trader Mark Mobius described it. He expects the crypto downturn to get worse, and it'll drag stocks lower, too.
"Billions of billions of dollars have been put into cryptocurrencies," he told CNBC Tuesday. "As you can see, bitcoin goes down, the S&P 500 goes down. It's a very unusual situation."
As if the above weren't concerning enough, the Bank of England governor dished out a grave warning of his own: "Be prepared to lose all your money."
In other news:
2. US stock futures edged higher Wednesday, as investors brace for a crucial Federal Reserve policy decision on interest rates — Aaron Weinman, writer of Insider's 10 Things on Wall Street newsletter, appeared on CBS News to break down the impact of an interest rate hike.
Meanwhile, the euro is soaring after the European Central Bank called a surprise meeting to discuss a meltdown in the bonds of the region's more indebted nations. In the crypto market, bitcoin is trading just above $20,000. Here are the latest market moves.
3. On the docket: LAIX Inc, John Wiley & Sons, and Naas Technology, all reporting. Also, the Federal Open Market Committee will conclude its two-day meeting today, with the interest rate decision expected at 1 pm ET.
4. Seven crypto influencers opened up about the portfolio wreckage they've suffered in the crash. Hyped token forecasts have turned out wrong so far. These investors shared how they are adjusting to their new reality.
5. Russia's oil production has jumped 5% in June so far. Average daily production is at a higher rate through the first 13 days of June compared to May. All the while, China and India continue to snap up discounted barrels from the sanctioned nation.
6. Leon Cooperman predicted US stocks will plunge 40% in total as the economy crashes into a recession. The billionaire investor said the S&P 500 may have to hit 3,000 before US stocks bounce back — which suggests there's still plenty of room to fall from current levels.
7. Over 80% of investors expect stagflation to shock markets within a year. That's according to Bank of America. As its analysts put it: "Wall Street sentiment is dire."
8. The stock market is tanking but UBS said shares of companies targeting high-income spenders could surge as much as 50%. Rising rates and inflation are dishing out a beating on the market. But these 38 stocks highlight a corner of the market that could hold upside.
9. A financial coach who books $8,000 a month shared how to earn passive income. Lisa Andrea is also a blogger and marketing expert. These are 9 ways she pulls in thousands of dollars a month.
10. The US endured a decline in employment during the pandemic that was twice as severe as the Great Recession's. But the rebound after COVID has been markedly faster. Nonfarm employment is now just 0.5% below the pre-crisis level.
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Curated by Phil Rosen in New York. (Feedback or tips? Email prosen@insider.com or tweet @philrosenn.) Edited by Max Adams (tweet @maxradams) in New York and Hallam Bullock (tweet @hallam_bullock) in London.