The S&P 500 traded lower on Friday's session to mark its sixth consecutive loss, making it the longest losing streak in over a year. This recent downtrend comes as a reaction to company earnings providing poor expectations for Q2, geopolitical tensions, and inflation worries. Netflix and Bank of America were one of the biggest company earnings this week with both beating analysts' expectations, but stock's falling anyways on uncertainties for Q2 performance. Middle East tensions continue as the Iran and Israel conflict shake up the market and spike oil prices. Technology stocks have been mixed as Nvidia retraced from its all-time highs and Tesla is down over 40% year to date. The Federal Reserve Chairman spoke on Tuesday stating that it will take longer than expected to achieve the confidence needed to cut interest rates. Economists and market analysts are now forecasting the FED to potentially make changes to monetary policy as far as September with the possibility of no interest rate reductions in 2024.
Bitcoin Halving today? What is it?
Bitcoin halving is an event that occurs after every 210,000 blocks are mined on the Bitcoin network, which usually takes around four years. During a halving event, the reward that Bitcoin miners receive for processing transactions is reduced by half. The first two halvings that occurred in 2012 and 2016 reduced the block reward from 50 BTC to 25 BTC and then to 12.5 BTC. The most recent halving happened in May 2020, reducing the block reward to 6.25 BTC. The halving event helps to regulate the issuance of new bitcoins into circulation, eventually leading to a total cap of 21 million Bitcoins. This reduction in supply can cause an increase in demand, leading to a potential increase in the price of Bitcoin. Historically, halving events have led to increased market volatility and price appreciation as expected supply reductions are factored into the market.