The Rundown - Bitcoin Briefly Hits New High, OpenAI Fires Back at Musk

Episode Date: March 6, 2024

Stock market update for March 6, 2024. The content of the podcast is for general and informational purposes only. All views presented in this show reflect the opinions of the guest and the host. You should not take a mention of any asset, be it cryptocurrency or a publicly traded security as a recommendation to buy, sell or hold that cryptocurrency or security. Guests and hosts are not affiliated with or endorsed by Public Holdings or its subsidiaries. You should make your own financial and investment decisions or consult respective professionals. Full disclosures are in the channel description. Learn more at Public.com/disclosures. Past performance is not a guarantee of future results. There is a possibility of loss with any investment. Historical or hypothetical performance results, if mentioned, are presented for illustrative purposes only. Do not infer or assume that any securities, sectors or markets described in the videos were or will be profitable. Any statements of future expectations and other forward-looking statements are strictly based on the current views, opinion, or assumptions of the person presenting them, and should not be taken as an indicator of performance nor should be relied upon as an investment advice.The content of the podcast is for general and informational purposes only. All views presented in this show reflect the opinions of the guest and the host. You should not take a mention of any asset, be it cryptocurrency or a publicly traded security as a recommendation to buy, sell or hold that cryptocurrency or security. Guests and hosts are not affiliated with or endorsed by Public Holdings or its subsidiaries. You should make your own financial and investment decisions or consult respective professionals. Full disclosures are in the channel description. Learn more at Public.com/disclosures. Past performance is not a guarantee of future results. There is a possibility of loss with any investment. Historical or hypothetical performance results, if mentioned, are presented for illustrative purposes only. Do not infer or assume that any securities, sectors or markets described in the videos were or will be profitable. Any statements of future expectations and other forward-looking statements are strictly based on the current views, opinion, or assumptions of the person presenting them, and should not be taken as an indicator of performance nor should be relied upon as an investment advice.

Welcome to the rundown, your daily market update in under five minutes. My name is Zadadmani, and today is Wednesday, March 6th. In today's episode, we celebrate Bitcoin making all-time highs and discuss the reason behind the rally. We also have an update in the Elon versus OpenAI drama. Open AI just fired back with receipts. We're going to get into it. And finally, we go over some stocks making moves today and end the show with a fun fact about

Taylor Swift and Singapore. Singapore might have upset a ton of Swipty's in Southeast Asia. Stick around to the end of the show to find out why. All right, let's get into it. Let's start with a recap of the markets yesterday. Stocks had another down day on Tuesday. The Dow, S&P, and NASDAQ all dropped more than 1%. And just like Monday, six of the seven magnificent seven stocks were down.

The only one that was up was Envidia, because of course it was. It's been a tough start of the week for the stock market, especially the magnificent seven. Unless you're Nvidia, of course. And the markets might get a little volatile over the next couple days because Jerome Powell is headed to Capitol Hill this week to testify before the House and Senate. He's testifying before the House today and then going in front of the Senate on Thursday. And just like with every testimony, lawmakers are going to hit him with a bunch of questions to learn more about the Fed's policy plans. Sometimes those questions aren't going to make any sense. But investors pay attention to this stuff to see if Jerome Powell will give any sort of hints on what the Fed's plan is moving forward.

Like maybe when interest cuts might be happening. And like I always say, when Jerome Powell talks, the markets dance. So don't be surprised if stocks have a couple days of volatility. I'm recording this episode before the markets open. And right now, it looks like the markets are slated for a green opening. But like I said, Jerome Powell is going to be talking over the next couple days. So it's going to get a little bumpy. Speaking of volatility, let's talk about Bitcoin.

Because Bitcoin had a wild day yesterday. I feel like I say that every single time. But yesterday was truly wild. Around noon yesterday, the price of Bitcoin crossed $69,000 and officially made all-time highs. First time since November of 2021. And when that happened, I did what all crypto investors were doing. I started blowing up the crypto group chats and scrolled through Twitter. And the vibes were great.

The memes were flowing. The crypto group chats were buzzing. And then like five minutes later, the price tanked. The price went from 69,000 and ended up dropping like 10% to below 62,000. I guess everyone did. decided to sell their bags exactly at the same time, right when Bitcoin hit all-time highs. Now, look, things have recovered a bit overnight. I'm recording this around 8 a.m. Eastern, and the price of Bitcoin is back around the $66,000

range. So, nice little recovery there. But everyone's still waiting for that 70K hit. It might still happen this week. You never know. Now, just taking a step back from all this, it's pretty incredible that Bitcoin got back to all-time highs. If you think about all the drama that went down in Crypto-Land over the last two and a half years, the FTX collapsed, the Celsius collapse, The Terra Luna collapse. Remember, Teraluna? There's been so much negativity in the crypto space, yet we're sitting here in March of 2024 and Bitcoin hit all-time highs. It's truly incredible. Now, one reason for the catalyst might be the launch of the Bitcoin ETFs back in January.

When those ETFs launched back in January, Bitcoin was around like the $42 to $45,000 range. And now it's up more than 40%. The money going to those ETFs has been significant. The total market cap for Bitcoin ETFs crossed 50,000. $53 billion. The Black Rock ETF alone crossed $10 billion last week. So Bitcoin being embraced by mainstream finance or like the cool kids say, TradFi, might be the catalyst that pushed it back to all-time highs. And look, I'm not going to lie, I was a bit skeptical of how Bitcoin and crypto as a whole

would perform in the world of high interest rates. But this rally seems to show that it's here to stay. And you know the hype's fully back when you see meme coins start trending. Go open up the public app and take a look at Dogecoin and Shiba Inu. Those coins were flying over the last week or so. But remember, this is crypto that we're talking about. So while this is fantastic, just, you know, be safe out there. Let's shift gears and talk about AI because we have an update in the Elon Musk versus

open AI drama. Remember, Elon filed a lawsuit against Open AI last week, claiming the company was breaching its contract by becoming a for-profit company and partnering with Microsoft instead of being a nonprofit company in creating open source tech like it originally intended to do when the company was founded back in 2016. Well, Open AI clapped back to Elon with some receipts. They shared some emails between OpenAI founders and Elon from back in 2016. In those emails, Elon actually backed the company's plans to become a for-profit business down the line

and insisted that OpenAI raised billions of dollars to compete with Google. But it gets better. In those emails, Elon even tossed out the idea of OpenAI partnering with Tesla to help OpenAI compete with Google. Open AI straight up says that Elon is suing them because he might be a bit jealous or something after all the progress that Open AI made without Elon. Remember, Elon left back in 2018. So the drama is heating up and now we're all just looking forward to seeing how Elon responds to all this. You know, my wife can't stop talking about how good this season of Love is blind is. Who needs Love is Blind when you got tech bros fighting over the future of AI?

HBO really needs to bring back the Silicon Valley show. There's just too much good content to talk about right now. All right, let's talk about some stocks that are making moves today. Crowdstrike stock is up more than 20% in pre-market trading after reporting solid earnings. The cybersecurity company beat their top line and bottom-line estimates. And the cherry on top, they also issued a strong guidance for their business for this year. And that's the trifecta for a company reporting earnings, beating top line and bottom line and issuing strong guidance. That's why the stock jumped more than 20%.

On the flip side, tough day for Nordstrom stock. The stock is down more than 10% after they reported. their earnings. And while their Q4 numbers beat Wall Street estimates, the company's outlook for the year wasn't great. The company said its full year revenue, including retail sales and credit cards, will range from a 2% decline to maybe a 1% gain compared to its previous year. Not great news. And the stock dropped 10% as a result. All right, guys, let's wrap up the show with a fun fact. Today's fun fact is incredible. It has to do with Singapore and Taylor Swift. The city slash state slash country of Singapore paid Taylor Swift like $2 to $3 million per show in exchange for her to not

perform in any other city or country nearby. So countries like Indonesia, Malaysia, and Philippines would not get a Taylor Swift concert as part of the Ares Tour. That's crazy. I feel like not enough people are talking about this story. I mean, for Singapore, it was a good business decision because Swifties from all these neighboring countries are now going to have to travel to Singapore to attend her concert, which means more money for Singapore businesses like hotels and restaurants. It's just crazy to me that countries are now paying Taylor Swift millions of dollars for exclusive concerts as a way to boost their local economies. And it seems to be working.

But obviously, Singapore's neighbors weren't super happy about this. I guess you could say there's some bad blood between them now. I had to sneak in a dad joke in this episode, okay? All right, guys, that's all I got for you guys today. If you guys enjoyed the show, please give the show five stars on Spotify and Apple Podcast. Also, we're going to have a poll up on Spotify, something related to this episode. So be sure to go check that out and vote. It's usually a really good poll and the results are always interesting.

Thank you again for tuning in today. And we'll see you guys back here tomorrow. This is the rundown, your real-time resource for news events and trends in the markets. All views presented in this show reflect the opinions of the guests. You should not take any mention of a publicly traded security as recommendation to buy, sell or hold that security. Rundown guests are not financial advisors and are not affiliated with public holdings or its subsidiary. You should make your own financial and investment decisions or consult, respective professionals. Learn more at public.com disclosures.

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