🚀 Bitcoin falls 6%

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Market Overview
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Year To Date Performances:

1. Bitcoin tumbled 6% on Monday to around $86,000. This was its worst single-day drop since March, as a renewed crypto sell-off collided with broader risk-off sentiment tied to rate-cut uncertainty and cooling enthusiasm for overheated AI-linked tech stocks; ether slid more than 8%, and Solana and other major tokens also sank. Pressure intensified after China’s central bank warned over illegal digital currency activity, dragging down Asia-listed crypto-related stocks, while analysts pointed to a $400 million exchange liquidation and extreme leverage—sometimes up to 200x—as key accelerants of the downturn. With nearly $787 billion in leveraged perpetual futures outstanding and trading volumes weakening across exchanges, experts warn more forced liquidations and short-term volatility may lie ahead unless crypto prices rebound.

2. The Dow fell 427 points on Monday, snapping a five-day winning streak as bitcoin dragged crypto-linked stocks lower and dented broader market sentiment, pulling the S&P 500 down 0.53% and the Nasdaq 0.38%. AI-exposed names like Broadcom and Super Micro Computer also saw renewed profit-taking. However, Nvidia and Synopsys bucked the trend after news of Nvidia’s investment lifted sentiment in parts of the sector. At the same time, retailers such as Walmart and Ulta outperformed on strong holiday momentum. Despite last week’s robust rally, markets remain jittery after November’s turbulence—particularly the Nasdaq’s stumble on stretched AI valuations—but historical tailwinds favour December, and some analysts argue the backdrop is still supportive with expectations rising for another Fed rate cut next week.

3. Instagram is scrapping hybrid work and will require all U.S. employees to return to the office five days a week starting Feb. 2. This shift, Adam Mosseri framed as necessary for creativity, faster prototyping, and fewer bureaucratic meetings — and a move that goes further than Meta’s broader three-day-a-week mandate, which still applies to Facebook and WhatsApp. The policy puts Instagram in line with Amazon, AT&T, Boeing, and Dell, all of which have reinstated full-time office work as companies look to tighten operations and boost collaboration after years of pandemic-era flexibility.

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