Portfolio Update - February 2024

Portfolio Summary

Here is a summary of my portfolio at the top level:

Raiz Aggressive Portfolio – $20,764.73 total return $1,977.82 (19.05% according to app)
VDHG (using VPI platform) – $102,031.08, total return $15,199.96 (9.39% including DRP)
IVV (Selfwealth) – $778.95, total return $293.12 (16.55% including DRP)
SYI (Selfwealth) – $2,325.52, total return $464.87 (7.55% including DRP)
VISM (Selfwealth) – $625.70, total return $84.17 (4.92% including DRP)
A200 (Selfwealth) – $2,183.31, total return $361.28 (7.20% including DRP)
Cryptocurrency – $109,179.17 (55.9% from principle)
Gold – $0
Property – $715,000.00
Redraw – $8,852.38
Mortgage – $553,048.36

A breakdown of my current asset allocation:

Australian Shares – 22.11%
Global Shares – 26.85%
Bonds – 4.89%
Fixed Income Assets – 0.26%
Gold – 0%
Cryptocurrency – 45.90%

Portfolio Total (Stock + Crypto + Gold) – $237,888.46. An increase of 18.64% compared to last month’s value ($200,512.13).

Net worth – $399,840.10

This month’s saving is 3.89%. I still find myself spending quite a bit this month, but a good thing is that I have started working again this month so I finally get back to my normal grinding process. A couple of large spending this month including

The payment for the floor – $6,000 for now. I still have the 2 bedrooms to finish, which would cost around $1,200.
Gutter cleaning – $500 to have gutters and downpipes cleaned.
An extra $1,000 for my family on top of the $2,000 to cover for last month. I was not able to send money back to my parents due to no income last month.

The monthly spending on my credit card also gets back to the normal level. With the income this month, I finally get my savings back to the target 3 months of emergency savings. I also need to pay my utility bills this month but the other income should be able to cover this. I have checked the bills and not much difference compared to last month. The usage is just a bit lower, probably because we are in summer already and don’t use heating that much. That’s just an observation for now after 2 bills, but I wait for another 6 months to get a more accurate view of the bills.

The contribution to Raiz is still the same, $400 this month, and the additional payment to the redraw is only $150. I am aiming to have a higher balance for my savings account so $150 is probably the best I can do, still better than nothing. Overall, this month saw a spike in spending due to home renovation but at least the house is in better shape with a better floor now and the terrible smell is slowly fading away. Gutters and downpipes have been cleaned, so the money spent on this is worth it.

Note: A reminder is that this number is still an estimation only as my crypto portfolio consists of different assets, including NFTs, staking, and Defi. I have to use other tools to keep track of and maintain the value of investments to finalize the value of my portfolio. NFT is hard to estimate because of price fluctuation in the crypto market. However, estimation is still good enough in this case.

Events & Porfolio Analysis

General news

On 01/02/2024, Fed Chairman Jerome Powell stated during a news conference that the central bank is unlikely to feel confident enough about the inflation trajectory by its next meeting in March to cut interest rates. While Powell acknowledged the possibility of rate cuts later in the year, he suggested that March is unlikely to be the time for such action. The Fed’s policy statement earlier in the day hinted at taking further rate hikes off the table but stopped short of signaling immediate cuts. Powell’s remarks disappointed traders hoping for earlier rate cuts, leading to a decline in stock prices. Powell emphasized the Fed’s cautious approach, aiming to avoid past mistakes in misjudging inflation trends. He also indicated that any rate cuts would depend on incoming data. The next two Fed policy meetings are scheduled for March 20 and May 1, with traders eyeing these dates as potential moments for the first rate cut amid easing inflation and slowing job growth.
On 02/02/2024, Deutsche Bank announced plans to cut 3,500 jobs, initiate share buybacks, and pay dividends as part of its ongoing turnaround strategy. This move comes as the bank reported a 30% decline in fourth-quarter profit, although it surpassed analyst expectations. The job cuts, representing nearly 4% of its global workforce, will mainly impact back-office roles. Additionally, the bank plans to conduct a share buyback and distribute dividends totaling 1.6 billion euros ($1.7 billion) in the first half of the year. Despite the profit decline, Deutsche Bank raised its revenue growth forecast, signaling positive momentum. Notably, the bank’s retail unit outperformed its investment bank in revenue generation in 2023, marking a significant shift in its business dynamics.
Zoom is cutting approximately 150 jobs, less than 2% of its workforce, as part of a strategic evaluation. The layoffs, not companywide, aim to align with future goals. Despite this, Zoom plans to continue hiring for key positions in 2024, including in AI, sales, and product development. These job cuts come amidst a broader trend in the tech industry, with over 100 companies letting go of around 30,000 employees since the start of the year. Zoom’s stock has declined about 10% this year and nearly 90% from its peak in October 2020. Last February, the company laid off around 1,300 employees, citing economic uncertainty.
Meta reported strong fourth-quarter earnings, surpassing expectations with earnings per share of $5.33 and revenue of $40.1 billion, driven by 2.11 billion daily active users (DAUs) and 3.07 billion monthly active users (MAUs), along with an average revenue per user (ARPU) of $13.12. Revenue grew by 25% year over year, fueled by a rebound in online advertising, while expenses decreased by 8%, leading to a doubled operating margin of 41%. The company announced its first-ever dividend of 50 cents per share and a $50 billion share buyback program. Sales in Meta’s Reality Labs unit exceeded $1 billion, while the virtual reality unit recorded $4.65 billion in losses. CEO Mark Zuckerberg expressed satisfaction with the progress in advancing AI and the metaverse, while for the first quarter of 2024, Meta expects sales between $34.5 billion and $37 billion, with projected expenses ranging from $94 billion to $99 billion.
Shares of Aozora Bank tumbled to nearly three-year lows on Friday after the Japanese commercial lender revised its annual outlook to a loss, primarily attributed to troubled U.S. commercial real estate loans. Aozora’s Tokyo-listed shares plummeted by up to 18.5%, reaching their lowest levels since February 2021. This decline followed losses in U.S. regional lenders, indicating broader concerns. Aozora now expects a net loss of 28 billion Japanese yen for the fiscal year ending March 31, a significant downturn from its earlier projection of a 24 billion yen profit. Looking ahead, the bank anticipates a net profit of 17 billion yen for the next fiscal year. Analysts from Goldman Sachs maintained their sell rating on Aozora’s shares, citing short to medium-term profitability concerns, and set a price target of around 2,460 yen per share. The bank’s Common Equity Tier 1 ratio is expected to dip to 6.6%, below its 7% target, mainly due to challenges in U.S. commercial real estate credit and valuation losses on available-for-sale securities, according to Masahiko Sato, a senior analyst at SMBC Nikko Securities.
On 03/02/2024, The U.S. labor market ended 2023 on a strong note, surpassing expectations with the addition of 216,000 jobs in December, while the unemployment rate remained steady at 3.7%. Payroll growth exceeded November’s figure of 173,000, although revisions showed a lower job count for October. Economists had anticipated a smaller increase in payrolls and a slight rise in the unemployment rate. However, a broader measure of unemployment, including discouraged workers and part-time employees for economic reasons, ticked up to 7.1%. The labor force participation rate decreased to 62.5%, its lowest level since February. Despite the solid December figures, 2023 saw a total of 2.7 million job gains, down from the previous year’s 4.8 million, indicating a slowdown in monthly job growth compared to 2022.
On 05/02/2024, in a recent interview aired on “60 Minutes,” Federal Reserve Chair Jerome Powell emphasized the central bank’s cautious approach to interest rate cuts in the coming year, suggesting a slower pace than market expectations. Powell expressed confidence in the economy, indicating that the Fed would carefully consider when to begin reducing rates, emphasizing the importance of seeing sustained evidence of inflation moving towards the 2% target. While markets had anticipated a rate cut in March, Powell hinted at the unlikelihood of such a move, pointing to the need for more confidence before initiating cuts. Despite acknowledging the potential for future cuts, Powell remained optimistic about the economy, highlighting moderated inflation and a robust job market, with geopolitical events posing the biggest risk.
On 06/02/2024, Snap announced on Monday that it will cut 10% of its global workforce, or approximately 500 employees, with the aim of fostering in-person collaboration. The Snapchat maker’s shares initially dipped 3% in morning trading but later recovered to close down 1.8%. This move marks the latest in a series of layoffs for Snap since 2022, with the company expecting charges between $55 million to $75 million as a result. Snap’s previous major round of cuts occurred in August 2022, reducing 20% of its staff. The company cited a reorganization to reduce hierarchy and encourage in-person collaboration as the reason behind the layoffs. Snap joins a growing list of tech companies implementing layoffs in 2024, with nearly 24,000 tech workers losing their jobs in January alone. Additionally, CEO Evan Spiegel recently testified before the Senate Judiciary Committee regarding social media’s impact on young people, amidst increasing scrutiny of tech platforms.
The Reserve Bank of Australia (RBA) kept interest rates unchanged at 4.35% in its first meeting of the year, citing a lower-than-expected inflation rate towards the end of 2023. While the decision to hold rates steady was widely expected, some economists now anticipate rate cuts in the latter half of the year as inflation moderates. Inflation in the December quarter fell to an annual rate of 4.1%, down from 7.8% a year earlier, with goods price inflation declining faster than forecast but services inflation moderating gradually. The RBA aims for inflation to return to the target range of 2-3% by 2025 and to the midpoint of that range by 2026. However, the bank highlighted significant uncertainty surrounding the global economic outlook, including geopolitical tensions and their potential impact on Australia’s economy. The RBA noted that while further interest rate hikes are possible, it will closely monitor global economic developments, domestic demand trends, and inflation and labor market outlooks.
The average rate for a 30-year fixed mortgage surpassed 7% on Monday, marking the first time since December, with the increase attributed to positive economic indicators such as the January employment report and a monthly manufacturing report. Mortgage rates have experienced significant fluctuations since the summer, briefly reaching a 20-year high of 8% in October before sharply declining. However, recent data indicating a strong job market has led to a rapid increase in rates over the past two days. While lower mortgage rates in recent months saw a resurgence in buyer activity, the persistently low inventory of homes for sale continues to drive competition and keep prices high. Despite challenges in the housing market in 2023, economists anticipate improvements in 2024, although mortgage rates are not expected to decrease significantly given the robust job market.
On 07/02/2024, Hong Kong plans to raise its guarantee on bank deposit savings to HK$800,000 ($102,000) starting in the fourth quarter of this year, up from the current HK$500,000, to provide greater financial security during times of stress. The Hong Kong Deposit Protection Board announced this decision at a briefing on Tuesday, with implementation expected pending approval from the city’s Legislative Council. Other enhancements to the deposit protection scheme will be introduced in early 2025. This move aims to cover more than 92% of the city’s depositors and follows a review initiated in July last year, prompted by global discussions on government-backed guarantees for bank savings amid financial uncertainties. Further adjustments to the cap will be considered through shorter review cycles starting in 2027, reflecting the evolving global landscape in deposit insurance policies. The board remains open to future increases in the protection limit to adapt to changing circumstances.
Shares of New York Community Bancorp (NYCB) plummeted by 22% on Tuesday, extending a sell-off triggered by the lender’s unexpected quarterly loss announcement last week. Moody’s downgrade of its long-term debt ratings to junk status further fueled the decline. NYCB’s stock closed at $4.20, marking a loss of more than half of its value from recent levels. The selling pressure also impacted shares of other industry peers, reflecting renewed concerns about the health of the commercial real estate (CRE) sector. Moody’s cited NYCB’s historical CRE lending and significant losses on New York office and multifamily properties as factors contributing to the downgrade. The lender’s increased provisions for potential bad loans, particularly in CRE, amid high interest rates and low occupancies added to investor apprehension. U.S. Treasury Secretary Janet Yellen acknowledged CRE concerns, emphasizing that the Financial Stability Oversight Council is closely monitoring the situation. NYCB’s stock continued to decline by 13.1% to $3.65 after hours.
On 08/02/2024, Warner Music is undergoing a significant restructuring, announcing the layoff of 600 employees, approximately 10% of its workforce, in a Wednesday filing. This move is part of a broader cost-saving initiative aimed at reallocating resources towards music and technology investment to drive growth over the next decade. The restructuring is expected to save the company $200 million by the end of fiscal 2025, with the majority of savings directed towards bolstering Warner Music’s core music units and new technologies. The job cuts will primarily affect teams such as in-house ad sales and various support functions, with severance payments totaling $85 million expected to be completed by the end of 2026.
On Wednesday, U.S. Treasury yields slightly rose following the successful sale of a record $42 billion in 10-year notes by the U.S. Treasury Department, with the notes selling at a high yield of 4.093%. The bid-to-cover ratio remained strong at 2.56 times, reflecting robust demand from both end users and overseas buyers. This auction marked the largest 10-year sale on record as the Treasury continues to increase auction sizes to address a growing budget deficit. While benchmark 10-year notes gained 2 basis points to 4.108%, they remained below the recent 11-day high of 4.177% reached on Monday. Despite recent fluctuations, the yield curve between two-year and 10-year notes showed little change, standing at minus 32 basis points, slightly off its recent low of minus 42 basis points. The consolidation in Treasury yields follows a rapid increase on expectations that the Federal Reserve would maintain higher rates for longer, particularly after Fed Chair Jerome Powell dismissed market pricing for a rate cut in March and recent positive economic data for January.
On 09/02/2024, In a significant shift, Mexico has become the top source of goods imported by the United States for the first time in over 20 years, surpassing China. The rise in Mexican imports, up almost 5% from 2022 to 2023, contrasts with a 20% decline in Chinese imports, totaling over $475 billion and $427 billion respectively. This shift reflects strained relations between Washington and Beijing and U.S. efforts to diversify imports towards friendlier and closer allies. The Trump administration’s tariffs on Chinese imports, continued by President Biden, underscore the bipartisan stance against China’s trade practices. As an alternative to offshoring production to China, the Biden administration advocates “friend-shoring” and “reshoring” to allied countries and the U.S. respectively. Supply chain disruptions during the pandemic have also prompted U.S. companies to seek suppliers closer to home, a trend benefiting Mexico. However, some Chinese manufacturers have established factories in Mexico under the U.S.-Mexico-Canada Trade Agreement, complicating the picture. Mexican President López Obrador sees Mexico’s trade status as leverage, suggesting it would deter the U.S. from closing the border to limit immigration.
On 11/02/2024, The latest revisions to the consumer price index (CPI) released by the Bureau of Labor Statistics show that prices consumers pay in the marketplace rose at a slower pace than originally reported. The broad basket of goods and services increased by 0.2% on the month, less than the initially reported 0.3%. This slight adjustment suggests that inflation was moderating towards the end of 2023, providing more room for the Federal Reserve to consider cutting interest rates later in the year. These revisions, a routine procedure for the Bureau of Labor Statistics, gained extra attention due to market reactions to last year’s changes, particularly when indications suggested higher inflation in 2022 than anticipated. Fed Governor Christopher Waller highlighted these revisions, prompting market scrutiny for the latest round. The core CPI, excluding food and energy, increased by 0.3% for the month, aligning with the initial report. Additionally, the headline November reading was revised higher, indicating a 0.2% increase versus the initial 0.1% estimate. Overall, the revisions suggest a slight deceleration in headline CPI growth for the fourth quarter of 2023, according to analysts.
On 14/02/2024, In January, inflation exceeded expectations, with the consumer price index (CPI) rising 0.3% for the month, higher than the anticipated 0.2%. On a 12-month basis, inflation stood at 3.1%, down from December’s 3.4%. The core CPI, excluding food and energy prices, increased by 0.4% in January, in line with forecasts, while shelter prices, which make up about one-third of the CPI weighting, rose by 0.6% for the month, contributing significantly to the overall increase. Despite the rise in prices, inflation-adjusted hourly earnings increased by 0.3% for the month, but when adjusted for the decline in the average workweek, real weekly earnings fell by 0.3%. Following the release, stock market futures declined sharply, with Dow Jones Industrial Average futures down more than 250 points, and Treasury yields surged higher.
Robinhood Markets Inc (NASDAQ: HOOD) disclosed its financial results for Q4 and the full year of 2023, reporting record revenue of $1.9 billion for the year, up 37% from the previous year. The growth is credited to innovative features like cryptocurrency trading and fractional shares. Q4 saw strong performance with net revenues up 24% year-over-year to $471 million, resulting in a net income of $30 million, a significant improvement from the previous year’s net loss. Adjusted EBITDA also rose 62% to $133 million. Despite a decrease in cash reserves due to share repurchases and acquisitions, Assets Under Custody (AUC) grew, reflecting customer trust and asset value growth. Challenges include a 4% decline in Monthly Active Users (MAU) year-over-year and a net loss for the full year, although improved from the previous year. Key metrics like Funded Customers, AUC, and Net Deposits indicate Robinhood’s expanding market share and industry position.
On 15/02/2024, The U.K. economy entered a technical recession in the last quarter of 2023, with the Office for National Statistics reporting a 0.3% GDP contraction, marking the second consecutive quarterly decline. This aligns with economists’ expectations, although they had forecasted a slightly smaller decline of 0.1%. All major sectors saw declines, with services, production, and construction output contracting by 0.2%, 1%, and 1.3% respectively. The overall GDP for 2023 showed minimal growth at 0.1% compared to the previous year, while December witnessed a 0.1% output decrease. U.K. Finance Minister Jeremy Hunt attributed the economic slowdown to high inflation, which is keeping interest rates firm, hindering growth. However, he highlighted positive indicators such as projected growth in the coming years, rising wages, lower mortgage rates, and low unemployment. Despite a marked decrease in inflation, it remains above the Bank of England’s target at 4% year-on-year as of January, impacting household finances.
Japan’s economy slipped into a technical recession as it unexpectedly contracted again in the October-December period, according to provisional government data released Thursday. High inflation dampened domestic demand and private consumption in the world’s fourth-largest economy. The latest gross domestic product (GDP) figures pose challenges for Bank of Japan Governor Kazuo Ueda in considering interest rate normalization and for Japanese Prime Minister Fumio Kishida in implementing fiscal policy support. Germany has now overtaken Japan as the third-largest economy in the world in dollar terms. The provisional GDP contracted by 0.4% in the fourth quarter compared to a year ago, significantly below economists’ median estimate of 1.4% growth. The GDP deflator in the fourth quarter stood at 3.8% on an annualized basis. Additionally, the Japanese economy shrank by 0.1% in the fourth quarter compared to the previous quarter, falling short of expectations for 0.3% expansion. Marcel Thieliant, Capital Economics’ head of Asia-Pacific, noted that while the possibility of Japan entering a recession is debatable, growth is expected to remain sluggish this year due to a negative household savings rate, despite some positive indicators like a drop in the unemployment rate and strong business conditions according to the Bank of Japan’s Tankan survey.
Singapore revised its full-year growth for 2023 downward, with official data released on Thursday showing a 1.1% expansion last year compared to the earlier estimate of 1.2%. Growth was primarily driven by “other services industries,” which grew by 3.9% year-on-year, along with the information and communications, and transportation and storage sectors. However, the manufacturing sector contracted by 4.3% in 2023, reversing from its growth of 2.7% in 2022. Despite challenges in certain sectors, Singapore’s economy expanded by 2.2% year-on-year in the fourth quarter of 2023, although it fell short of the government’s advance estimates. On a quarter-on-quarter basis, the economy grew by 1.2% in the fourth quarter, showing improvement from the previous quarter’s 1% growth.
On 17/02/2024, mortgage rates surged higher following a government report indicating persistent inflation exceeding analysts’ expectations. The average rate on the 30-year fixed mortgage reached 7.14%, marking the highest level in two months, according to Mortgage News Daily. This increase comes after rates dipped in December to around 6.6% but rose back above 7% last week due to elevated consumer prices. Matthew Graham, Mortgage News Daily’s chief operating officer, noted contrasting perspectives on recent rate trends, acknowledging the current rates are nearly a percent lower than in October but expressing skepticism after an optimistic outlook for lower rates in 2024. Lower rates at the end of 2023 had stimulated buyer activity in the housing market, with sales of newly built homes surging 8% in December. Homebuilder sentiment has also improved, with expectations that lower rates will continue to drive buyer traffic, although rates remain relatively high for many prospective buyers.
Treasury yields rose as January wholesaler prices exceeded expectations. The 10-year Treasury yield increased by 6 basis points to 4.295%, nearing the key level of 4.3%. Similarly, the 2-year Treasury yield surged by 9 basis points to 4.66%, reaching its highest level since December 13th. The producer price index for January climbed 0.3%, surpassing economists’ forecasts, while the core PPI, excluding food and energy prices, rose by 0.5%, also exceeding expectations. This data release adds to a series of closely watched economic indicators this week, as investors seek insights into future inflation trends and monetary policy. Earlier reports on consumer prices and retail sales prompted market volatility, with concerns about persistent inflation and its potential impact on interest rate decisions. Despite signs of strength in the labor market, uncertainty remains regarding the timing and extent of potential interest rate adjustments, with Federal Reserve officials emphasizing a data-driven approach to decision-making.
On 20/02/2024, Capital One Financial has announced plans to acquire Discover Financial Services in a $35.3 billion all-stock deal, offering Discover shareholders a 26% premium from their Friday closing price. The merger, expected to close in late 2024 or early 2025, will result in Capital One shareholders owning 60% and Discover shareholders owning 40% of the combined company. This acquisition, which merges two of the largest credit card issuers in the U.S., aims to expand Capital One’s credit card offerings and deposit base. Despite Capital One’s existing partnerships with Visa and Mastercard, it plans to retain the Discover brand. The deal is expected to have broad implications for merger activity within the financial sector, reflecting the competing interests of regulators and market demands.
Barclays reported a fourth-quarter net loss of £111 million ($139.8 million), contrary to analyst expectations of a net profit of £60.95 million. This comes as the British lender undergoes a major restructuring program aimed at reversing declining profits. For the full year, net attributable profit amounted to £4.27 billion, down from £5.023 billion in 2022 and below consensus forecasts. Barclays also announced a £1 billion share buyback and plans to unveil a new three-year strategy to enhance operational and financial performance. The bank’s corporate and investment bank faced challenges in 2023, particularly in its fixed income, currency, and commodities trading division, as market volatility moderated. In its third-quarter report, Barclays had warned of substantial cost-cutting charges expected in the fourth quarter.
China’s central bank has cut the country’s benchmark five-year loan prime rate for the first time since June, aiming to stimulate the sluggish property market. While the one-year loan prime rate remains unchanged at 3.45%, the five-year rate, crucial for most mortgages, was reduced by 25 basis points to 3.95%. This move, larger than expected, reflects authorities’ targeted easing measures and highlights their concern about the limited impact of previous policy adjustments. Economist Louise Loo suggests that while the rate cut may boost demand marginally, it underscores the need for a comprehensive approach to address China’s property market challenges.
On 22/02/2024, Artificial intelligence and semiconductor chip stocks surged following Nvidia’s fourth-quarter earnings report, which exceeded Wall Street’s expectations and included optimistic projections for growth in 2025 and beyond. Taiwan Semiconductor Manufacturing Company (TSMC), a key supplier for Nvidia and Apple, saw its shares rise by up to 2.05% in Thursday morning trading. Super Micro Computer, a server component supplier, experienced an 11.42% increase in its shares during Wednesday’s after-hours trading. Additionally, ASML, a Dutch chip equipment manufacturer supplying critical lithography machines to TSMC, witnessed a 2.7% jump in its shares in U.S. after-hours trading.
On 23/02/2024, Social media company Reddit filed its IPO prospectus with the Securities and Exchange Commission, planning to trade on the New York Stock Exchange under the ticker symbol “RDDT,” with its market debut expected in March. This marks the first major tech initial public offering of the year and the first social media IPO since Pinterest went public in 2019. According to the filing, Reddit reported $804 million in annual sales for 2023, up 20% from the previous year, primarily driven by online advertising sales from its website and mobile app. Founded in 2005, Reddit has incurred net losses since its inception but narrowed its net loss to $90.8 million for the year ended Dec. 31, 2023, compared to $158.6 million the previous year. Despite being one of the most-visited websites in the U.S., Reddit has faced challenges in building an online advertising business comparable to tech giants like Meta and Alphabet. With over 100,000 communities and significant daily and weekly active users, Reddit reported a decline in its U.S. average revenue per user (ARPU) to $5.51 and a global ARPU of $3.42. Looking ahead, Reddit aims to capitalize on the advertising market, estimating the global total addressable market to be $1.4 trillion by 2027 and plans to expand its search advertising capabilities to address the estimated $750 billion opportunity in search advertising by 2027.
On 24/02/2024, Nvidia briefly surged past a $2 trillion market capitalization during intraday trading on Friday following its positive earnings report earlier in the week, but the milestone was short-lived. Despite the initial rise, Nvidia shares closed up less than 1% on Friday at $788.17 per share, following a 16% increase on Thursday. The company reported $22.10 billion in revenue for its fiscal fourth quarter, exceeding analysts’ expectations, with net income soaring to $12.29 billion, a significant increase from the previous year. Nvidia’s growth has been driven by the growing demand for artificial intelligence capabilities in the tech sector, particularly its graphics processors used in servers powering large AI models. The company expects sales of $24.0 billion in the current quarter, surpassing analyst expectations, and CEO Jensen Huang expressed optimism for continued growth during the company’s quarterly call with investors.
Former President Donald Trump has shifted his stance on Bitcoin, acknowledging its growing popularity and adoption during a recent interview on Fox News. While still expressing a preference for the U.S. dollar, Trump acknowledged that Bitcoin has taken on a life of its own and recognized the increasing number of people embracing it for transactions. This marks a departure from his previous anti-Bitcoin rhetoric during his tenure as president, where he denounced Bitcoin as a scam and reportedly instructed the treasury secretary to take action against it. Despite his acknowledgment of Bitcoin’s prominence, Trump suggested that some regulation may be necessary.
On 26/02/2024, South Korea’s Financial Services Commission (FSC) unveiled a new initiative on Monday, inspired by Japan’s corporate governance reforms, aimed at improving corporate governance and boosting the undervalued local markets, commonly referred to as the “Korea discount.” The FSC introduced its “Corporate Value-up Program,” focusing on enhancing shareholder returns through incentives such as tax benefits and encouraging listed companies to voluntarily disclose valuation enhancement plans. Drawing parallels with Japan’s successful reforms, which have seen Tokyo markets reaching record highs, the FSC aims to emulate similar outcomes in South Korea. The program includes the introduction of the “Korea Value-up Index” for institutional investors, along with ETFs tracking the index to facilitate retail investors’ access to high-performing companies. While the initiative has been positively received for its direction, some analysts, like Daniel Yoo from Yuanta Securities Korea, believe that more detailed plans regarding dividend payouts and stock buybacks are needed for its successful implementation.
On 27/02/2024, JPMorgan Chase CEO Jamie Dimon expressed concerns about the possibility of a recession in the United States, stating that there’s a better-than-even chance of it happening, although he doesn’t foresee systemic issues on the horizon. Speaking at the JPMorgan High Yield and Leveraged Finance Conference in Miami, Dimon highlighted that markets might not be accurately pricing in the likelihood of interest rates remaining higher for a prolonged period. He noted that while a soft landing for the economy is plausible, the market’s current odds of avoiding a recession are overstated, estimating them at 70 to 80 percent compared to his assessment of around half that probability. Dimon’s remarks reflect the market’s recent adjustments in expectations for monetary policy, with traders revising their forecasts for interest rate cuts to begin later than previously anticipated. Additionally, the Federal Reserve’s quantitative tightening, involving the reduction of its bond holdings, has contributed to the tightening of monetary policy, further impacting market dynamics.
On 28/02/2024, The European Central Bank (ECB) reported its first annual loss since 2004, totaling 1.3 billion euros ($1.4 billion), largely due to increased interest expenses resulting from higher interest rates. Despite the loss, the ECB released its entire provision for financial risks, amounting to 6.6 billion euros, mitigating the impact. The bank expects further losses in the coming years but assures that it will not affect its ability to conduct effective monetary policy. The decision to raise interest rates was a response to rising inflation post-Covid-19 pandemic and disruptions in energy supply following Russia’s invasion of Ukraine. The ECB’s net interest loss in 2023 was 7.19 billion euros, contrasting with a 900 million euro income in 2022. Despite the loss, the ECB emphasized its financial strength, highlighting its capital and substantial revaluation accounts totaling €46 billion at the end of 2023. The bank plans to offset the loss against future profits and will not distribute profits to euro zone national central banks for 2023. While the loss does not affect the ECB’s mandate of maintaining price stability, it is monitored as a measure of credibility and can influence broader decisions.
Sony Interactive Entertainment announced plans to lay off approximately 900 employees, constituting 8% of its global workforce within the PlayStation unit. Jim Ryan, President and CEO of the unit, attributed the decision to the need for changes to sustain business growth and development. The layoffs will affect employees across all regions, with the closure of PlayStation’s London studio and other studios facing impacts. This move follows Sony’s reduction in sales forecast for its PlayStation 5 console in February, citing lower demand and revising expected sales to 21 million units for the fiscal year ending in March. The announcement of layoffs reflects a broader trend in the tech industry, with companies like Microsoft, Cisco, and DocuSign also recently announcing workforce reductions. Sony’s shares saw a slight decline following the announcement.
On 29/02/2024, According to the latest data from the Australian Bureau of Statistics (ABS), Australia’s monthly Consumer Price Index (CPI) indicator increased by 3.4 per cent in the 12 months leading up to January. This marks the lowest annual inflation rate since November 2021, indicating a continued slowdown in inflationary pressures. The most notable price increases were observed in housing, food and non-alcoholic beverages, alcohol and tobacco, as well as insurance and financial services. However, these were partially offset by decreases in recreation and culture due to holiday travel and inflation. ABS’s head of prices statistics, Michelle Marquadt, noted that CPI inflation is often influenced by volatile items like automotive fuel, fruit and vegetables, and holiday travel. Excluding these items, the annual rise in January was 4.1 per cent, down from 4.2 per cent in December, with inflation rates declining since reaching a peak of 7.2 per cent in December 2022. Housing costs, including new dwelling prices and rent, also saw increases, although at a slower pace compared to previous months, reflecting higher labor and material costs and a tight rental market with low vacancy rates nationwide.

Crypto news

On 01/02/2024, Tether Holdings Limited, the company behind the stablecoin Tether (USDT), reported a record-breaking net profit of $2.85 billion in the fourth quarter of 2023. This profit was primarily driven by interest earned from United States Treasury securities, amounting to $1 billion, along with strong performance from other assets like gold and Bitcoin (BTC). With a team of 125 employees, Tether’s net profit per employee for the quarter stood at $22.8 million. For the entire year, Tether disclosed a total net profit of $6.2 billion, with significant contributions from U.S. Treasury bonds and other non-crypto investments. The company’s assets under management include substantial holdings in U.S. Treasuries, BTC, gold, and venture capital investments. Tether’s move to back its stablecoin with higher-quality assets like T-bills and gold reserves since 2022 has strengthened its position, making it one of the top buyers of U.S. Treasury bills by September 2023. The stablecoin issuer has also accumulated $5.4 billion in excess reserves in 2023 to address concerns about portfolio risk, covering outstanding secured loans.
Regional U.S. bank stocks experienced a decline on Wednesday, with New York Community Bancorp leading the fall with a 38% drop after announcing a dividend cut and posting an unexpected loss. This raised concerns about the overall health of similar lenders. The KBW Regional Banking Index closed down 6%, marking its most significant one-day decline since March 13 of the previous year when Signature Bank in New York faced depositor panic following the failure of Silicon Valley Bank. Although deposits have since stabilized, the sell-off on Wednesday underscored ongoing worries about the health of regional lenders. Investors noted concerns that the cost of retaining deposits could impact net interest income (NII), a key driver of lending profits.
Hong Kong’s Office of the Privacy Commissioner for Personal Data (PCPD) has launched an investigation into Worldcoin’s local operations, citing “serious risks to personal data privacy.” The PCPD executed warrants and entered six premises controlled by Worldcoin in Hong Kong as part of this investigation, requesting documents and information. The commission expressed concerns about the use of iris-scanning orbs by Worldcoin for identity verification, warning Hong Kong residents to consider the potential misuse of their biometric data. The PCPD stated that the collection and processing of sensitive personal data by Worldcoin may violate the requirements of the Personal Data (Privacy) Ordinance, emphasizing that any personal data controlled by Worldcoin must be collected for a lawful purpose related to the project’s function or activity. According to the PCPD, the information collected from users’ irises is considered sensitive under regulatory guidelines.
Coinbase Global Inc. has enlisted the expertise of former United Kingdom Chancellor of the Exchequer, George Osborne, as an adviser amid growing regulatory pressure in the United States. Osborne, who served as Chancellor from 2010 to 2016, brings a wealth of experience in government and international affairs to Coinbase’s advisory board. His appointment comes at a crucial time for the crypto exchange, which is facing legal action from the US Securities and Exchange Commission over allegations of offering unregistered securities. Osborne’s extensive background in finance and government is expected to provide valuable insights as Coinbase navigates through regulatory challenges in the financial services sector.
On 02/02/2024, Valkyrie, an asset management firm, has chosen BitGo as the custodian for its newly launched spot Bitcoin exchange-traded fund (ETF). The agreement, disclosed in a filing with the SEC, outlines BitGo’s role in providing custody and safekeeping services for the Valkyrie Bitcoin Fund’s holdings. Despite this, Valkyrie still plans to use Coinbase Trust Company as another custodian, aiming to diversify its digital asset custodians. BitGo now serves as custodian for two spot Bitcoin ETF issuers, including Hashdex, while Coinbase handles most of the spot Bitcoin ETFs launched in January. BitGo CEO Mike Belshe emphasized the importance of custodian diversification to mitigate ETF custody risks, calling it a “huge win for the industry.”
On 03/02/2024, Spanish fintech company Monei has initiated trials for EURM, a euro-backed stablecoin, under the supervision of the Bank of Spain. The trial, which began in January within a regulatory sandbox, involves individual users conducting transactions to assess EURM’s functionality. Each user verifies their identity, deposits 10 euros, exchanges it for 10 EURM, and tests the stablecoin’s transaction capabilities. Monei CEO Alex Saiz Verdaguer views this trial as a significant step towards digitalizing payments, offering a more secure and efficient alternative. EURM aims to facilitate quick transactions between mobile phone users with minimal transaction fees. Furthermore, the stablecoin’s infrastructure provides corporate solutions, including real-time employee payments and bonuses. The Bank of Spain’s interest in EURM aligns with its own digital currency initiatives, separate from the digital euro project, and partnerships with financial institutions like Cecabank, Abanca, and Adhara Blockchain. Additionally, Spain’s Ministry of Economic Affairs and Digital Transformation plans to implement the EU’s Markets in Crypto-Assets Regulation ahead of schedule.
On 05/02/2024, Bankrupt crypto exchange FTX is seeking court approval to sell its stake in AI firm Anthropic, filing a motion in the United States Bankruptcy Court for the District of Delaware on Feb. 3. The stake, held by FTX’s sister company Alameda Research, includes Anthropic Series B preferred stock. FTX’s former CEO, Sam Bankman-Fried, initially invested in Anthropic with funds from customer deposits on FTX. Alameda’s stake in Anthropic decreased from 13.56% to 7.84% due to dilution from subsequent funding rounds. Anthropic was valued at $18 billion as of December 2023, making Alameda’s stake worth about $1.4 billion. FTX aims to expedite the review process, seeking resolution in the bankruptcy court’s meeting on Feb. 22. This move is part of FTX’s strategy to recover funds and fully repay customers, with legal representatives expressing confidence in the exchange’s ability to reimburse users and creditors without restarting operations. Additionally, FTX filed a motion on Feb. 1 to sell a $175 million claim against bankrupt firm Genesis Global Capital.
On 06/02/2024, Former Terraform Labs chief financial officer Han Chang-joon, known as J.C.H., was extradited from Montenegro to South Korea on February 5, according to police statements. Han, along with former Terraform CEO Do Kwon, was apprehended at Podgorica airport on March 23 while attempting to use forged Costa Rican passports to travel to Dubai via a private jet. Han faces severe criminal charges related to fraud in South Korea, potentially resulting in a life sentence, while Kwon may face up to 40 years in prison. The duo spent four months in a Montenegrin prison for falsifying travel documents before their extradition. Despite an Interpol “Red Notice” for his arrest, Kwon had been living in Serbia and had established a business there.
Bankrupt lender Genesis is seeking court approval to sell around $1.3 billion worth of Grayscale’s bitcoin ETF GBTC, along with shares in Grayscale’s Ethereum Trust and Ethereum Classic Trust. Genesis, which owns millions of shares across these entities, aims to offload the assets pending court approval. The motion comes after FTX estate’s recent sale of nearly $1 billion in GBTC shares, contributing to large outflows for the bitcoin ETF. Despite recent outflows, bitcoin ETFs recorded inflows of over $700 million last week. Genesis is also seeking to claim 30 million GBTC shares pledged to Gemini but never transferred. Last week, Genesis settled with the Securities and Exchange Commission, potentially owing $21 million to the regulator pending creditor repayment. The court will hear the motion on February 8.
On 07/02/2024, Crypto exchange Binance has launched a $5 million bounty to uncover potential corrupt staff members amid accusations of insider trading. The move follows discussions in the community regarding a price plunge in Ronin (RON) after its listing on Binance, with some suggesting leaks from within the exchange. Binance co-founder Yi He clarified that blockchain data showed the exchange preparing to receive the token, but the incident raised concerns. This development comes shortly after Coinbase director Conor Grogan reported finding wallets engaging in suspicious trading patterns around Binance listings. Yi He also announced an overhaul of Binance’s token listing process as part of addressing these concerns.
MicroStrategy, the largest publicly traded holder of Bitcoin (BTC), has announced its acquisition of an additional 850 BTC in January, bringing its total holdings to 190,000 BTC, valued at $8.1 billion at the current price of $42,914 per BTC. During its Q4 2023 earnings call on Feb. 6, the business software firm reported acquiring 56,650 BTC throughout 2023 at an average price of $33,580. Despite a 6.1% decrease in revenue to $124.5 million, MicroStrategy posted a net income of $89.1 million, a significant improvement from the $249.7 million loss in the previous year. According to MicroStrategy’s executive chairman Michael Saylor, the company’s performance reflects investors’ recognition of the broader theme of a “digital transformation” of assets. Since becoming the first publicly traded company to allocate capital to Bitcoin in December 2020, MicroStrategy’s share price has grown by over 300%, outperforming tech stocks like Microsoft and Google, which grew by approximately 95% in the same period.
On 08/02/2024, UBS’ Hong Kong subsidiary, in collaboration with cryptocurrency exchange OSL, has tokenized an investment warrant on the Ethereum blockchain, marking a significant move towards digital asset adoption in traditional finance. The tokenized product is an options call warrant with Xiaomi Corporation as the underlying stock, and after tokenization, it was sold to the OSL Exchange. This innovative approach aims to simulate the entire lifecycle of an equity-linked structured product token, offering benefits such as enhanced transparency, reduced transaction fees, streamlined settlement processes, and flexible trading hours. UBS highlights the advantages of financial derivatives tokenization, including increased accessibility, efficiency, and transparency through blockchain’s immutable ledger. This initiative builds on UBS’ ongoing research on asset tokenization since 2015 and previous ventures like the issuance of tokenized fixed rate notes and digital structured notes in Asia Pacific markets. Similarly, OSL is exploring a Fund Token initiative for retail fund products, showcasing the growing interest in tokenization within the financial industry.\
On 09/02/2024, The Dencun upgrade, scheduled for Ethereum’s mainnet launch on March 13, aims to reduce transaction costs on layer-2s through proto-danksharding and blobs. Proto-danksharding introduces blob-carrying transactions, limiting them to 16 per block, each up to 128 KB. This innovation benefits rollups by enabling commitments to transaction data on-chain while storing actual data in blobs rather than calldata. The upgrade follows successful deployment on the Holesky testnet and was approved in an “AllCoreDevs” call on February 8.
On 12/02/2024, In inflation-hit Argentina, locals are turning to underground peer-to-peer exchanges known as “crypto caves” to acquire U.S. dollar stablecoins, aiming to bypass strict currency controls and the country’s soaring inflation. According to Guillermo Escudero, strategic alliances manager at CryptoMarket, these crypto caves operate discreetly in hidden locations, offering locals the opportunity to exchange their Argentine pesos for cryptocurrencies like Tether (USDT) at more favorable rates compared to official exchange rates. With local banks unable to officially accept dollars, crypto wallets have become a popular choice for storing dollar-pegged stablecoins. Ramiero Raposo, vice president at Bitwage, noted that saving in “digital dollars” allows Argentinians to preserve their wealth amid the depreciation of the local currency. Interestingly, despite the growing interest in cryptocurrencies, locals are reportedly wary of Bitcoin due to its perceived volatility.
On 13/02/2024, Bitcoin surged to an intraday high of $50,000, marking its first time hitting this level since December 2021. The rally, which saw Bitcoin climb 3.25% from an intraday low of $47,745, was fueled by positive exchange-traded fund (ETF) inflows over the past week. Spot Bitcoin ETFs attracted over $1.1 billion in inflows last week, while outflows from the Grayscale Bitcoin Trust slowed down. Newly issued spot-based Bitcoin ETFs in the US saw a net inflow of $1.1 billion, bringing total assets under management to $59 billion, the highest since early 2022. This surge in Bitcoin’s price represents a significant milestone, as it last traded above $49,000 more than two years ago, in December 2021.
The criminal sentencing for Binance founder Changpeng “CZ” Zhao has been rescheduled to April 30, according to a notice filed in a Seattle Federal Court on February 12. Originally set for February 23, Zhao pleaded guilty to money laundering charges and faces up to 18 months in prison, although a prosecution filing suggested he could face a harsher punishment. While some anticipate a longer sentence, legal experts suggest Zhao may receive 12-18 months in a minimum-security prison under U.S. sentencing guidelines. His legal team is expected to seek no jail time or an alternative sentence combining prison time with home detention and probation. Currently out on bail with a $175 million bond, Zhao is barred from leaving the U.S. pending sentencing. In a letter to Judge Richard Jones, Zhao’s lawyers disclosed that he offered all his equity in Binance.US as security, valued at around $4.5 billion.
On 14/02/2024, Ripple has acquired Standard Custody & Trust Company, a digital asset custody provider in the United States, further expanding its regulatory licenses. Standard Custody offers custody and escrow services under a charter granted by the New York State Department of Financial Services and is a qualified custodian under federal legislation. This acquisition adds to Ripple’s existing licenses, including a New York BitLicense and nearly 40 money transmitter licenses across American states. The terms of the acquisition were not disclosed. Ripple president Monica Long highlighted that this move enables them to serve customers in new ways, aligning with their goal to be a comprehensive solution for enterprises in tokenizing, storing, and exchanging value. This acquisition follows the resignation of Metaco CEO Adrien Trecanni, although the timing of his departure is unclear. Metaco, a blockchain custody firm based in Switzerland, was acquired by Ripple in May for $250 million.
On 15/02/2024, Gold-tracking exchange-traded funds (ETFs) have experienced significant outflows totaling $2.4 billion in 2024, with notable exits from BlackRock’s iShares Gold Trust Micro and iShares Gold Trust. In contrast, ETFs tracking the spot price of Bitcoin have seen aggregate inflows of $3.89 billion since their launch on Jan. 11, according to preliminary data from Farside. While some speculate that investors may be shifting from gold to Bitcoin, others attribute the trend to a broader enthusiasm for U.S. equity markets. Bitcoin pioneer Jameson Lopp humorously questioned the sentiment of gold investor Peter Schiff amid this divergence in ETF flows.
Spot Bitcoin exchange-traded funds (ETFs) have witnessed a surge in net inflows, surpassing the total inflows from the first four weeks of trading in just the last four days. Data from Bitcoin tracking platform Apollo reveals that over the past four days, the 10 spot Bitcoin ETFs have accumulated 43,300 Bitcoin, valued at $2.3 billion, in inflows. This marks a significant acceleration compared to the initial 20 days of trading, during which they gathered 42,000 Bitcoin in inflows. Notably, four spot Bitcoin ETFs, excluding Grayscale, have joined the “billionaire club,” with Bitwise Bitcoin ETF being the latest addition on Feb. 14. Nate Geraci, president of the ETF store, highlighted Bitwise’s impressive performance as the only crypto-native investment fund among the top providers, alongside BlackRock’s iShares Bitcoin Trust, Fidelity’s Wise Origin Bitcoin Trust, and Cathie Wood’s Ark 21Shares Bitcoin Trust.
On 16/02/2024, According to a report, there has been a notable increase in bitcoin call option buying, particularly at strike prices above $60,000 for expiries from April to December this year. QCP Capital’s Options Vol-cast report highlighted significant spending of close to $10 million on premiums for $60,000 and $80,000 strike prices expiring during this period. This trend is supported by metrics from the Deribit cryptocurrency derivatives exchange, showing a concentration of open bitcoin call options at strike prices of $65,000 and higher for the same expiries. Notably, there is a focused cluster of bitcoin call options at a strike price of $100,000 for the December end-of-year expiry. The largest volume of bitcoin options among upcoming expiries is observed at a strike price of $60,000 for the end of March, with over 1,273 contracts amounting to a notional value of over $67 million, according to Deribit data.
On 19/02/2024, The FTX bankruptcy case has taken a new turn with creditors filing a class-action lawsuit against law firm Sullivan & Cromwell (S&C), alleging the firm’s involvement in FTX Group’s fraudulent activities. The lawsuit accuses S&C of benefiting financially from FTX’s fraud and seeks damages for civil conspiracy, aiding and abetting fraud, and fiduciary breaches. S&C, overseeing the bankruptcy proceedings, had a previous relationship with FTX through former partner Ryne Miller, who joined FTX as general counsel. Miller allegedly directed business to S&C and expressed intent to return as a partner. Former FTX CEO Sam Bankman-Fried also had a close relationship with S&C. S&C denies any wrongdoing but has faced scrutiny for its potential conflict of interest in the bankruptcy case.
On 20/02/2024, BlackRock has launched a media advertising campaign for its spot Bitcoin exchange-traded fund (ETF), emphasizing Bitcoin as “progress” rather than a currency. The advertisement maintains BlackRock’s conservative approach, with a simple message stating, “Bitcoin ETFs have landed,” accompanied by an image of a runway and plane. This strategy, described as “boring” yet effective, aims to appeal to a wide audience. BlackRock’s initial ETF advertisement targeted affluent demographics, and since its launch, the IBIT fund has attracted $5.3 billion in inflows. The Bitcoin ETF marketing competition intensified after Bitwise’s ad featuring actor Jonathan Goldsmith, signaling a growing interest in cryptocurrency ETFs.
A counterfeit version of the Rabby Wallet crypto app has surfaced on the Apple App Store, leading to significant financial losses for unsuspecting users. The official Rabby Wallet team confirmed that the app currently listed on the store is fake, as their genuine app is still under review. Despite numerous reports from users, the imposter app, labeled “Rabby Wallet & Crypto Solution” by “Solution Development,” remains available for download. Concerned users, including victims who have lost substantial sums of money, have raised alarms on platforms like Reddit and the Apple discussion board. One victim reported losing $5,000 to the fraudulent app and has reached out to Apple for possible reimbursement. Another user complained of a 10% portfolio loss due to the fake Rabby_io application. Additionally, an NFT collector shared their experience of having their wallets drained by the fake app after importing their seed phrase, providing details of the hacker’s address containing significant Ethereum holdings.
On 21/02/2024, Circle, the issuer of the USD Coin (USDC), has announced the discontinuation of support for the token on the Tron blockchain, citing efforts to maintain trust, transparency, and safety. Effective immediately, Circle will cease minting USDC on Tron and gradually phase out support for the blockchain network. While Circle will continue supporting USDC transfers for its Circle Mint business customers until February 2025, it encourages retail users and non-Circle customers to transfer their TRON-based USDC to an exchange for migration to a blockchain network where USDC is still supported. Although Circle did not specify a reason for ending Tron support, it stated that the decision was part of its ongoing risk management process and involved various departments within the company.
Cryptocurrency advocate John Deaton announced his Senate bid challenging Sen. Elizabeth Warren in Massachusetts, emphasizing his tough upbringing, Marine service, and legal career in a campaign video. Deaton, a Detroit native who recently moved to Massachusetts, aims to “shake things up” by addressing issues like the migrant crisis, inflation, and Washington corruption. Despite facing an uphill battle against Warren, Deaton vows to fight for what is right, criticizing Warren for not delivering on promises. Meanwhile, Warren released a report highlighting over $50 million in federal funding she secured for Massachusetts. Deaton, who represented asbestos victims in his law firm, plans to loan his campaign $500,000.
Australian retail interest in Bitcoin has surged following the approval of spot Bitcoin exchange-traded funds (ETFs) in the United States, according to a recent survey. The fifth annual Independent Reserve Cryptocurrency Index, based on responses from 2,100 adults, revealed a 25% increase in Bitcoin sentiment in Australia after the ETF approval. While adoption rates also saw a slight rise in 2024, uncertain economic conditions restrained further adoption. The survey indicated a significant boost in positive sentiment among individuals aged 55 and above, with favorability towards Bitcoin doubling. Independent Reserve CEO Adrian Przelozny commented on the findings, noting a “demonstrable shift” towards renewed optimism and growth. Moreover, the survey revealed that 19% of respondents would invest in an Australian Securities Exchange (ASX)-listed spot Bitcoin ETF if available, with the highest enthusiasm observed among those aged 25 to 44. Additionally, around a third of respondents expressed interest in investing in Bitcoin long-term through a self-managed retirement fund, but preferences for accessing Bitcoin via a crypto exchange or ETF were divided. Overall, crypto ownership increased by 1.9% to 27.5% between 2022 and 2024, with the most significant increases seen among respondents aged 55-64 and 65 and above.
Ahead of the national elections scheduled for April 10, South Korea’s ruling and opposition parties are making crypto-related poll promises. The ruling People Power Party has proposed several measures, including allowing spot Bitcoin exchange-traded funds (ETFs), establishing a ‘digital asset promotion committee’ to propose laws and sanctions, and prioritizing a regulatory framework over taxation. This effectively delays the implementation of a crypto gains tax scheduled for January 2025, potentially postponing it until 2027. The party cites the need for at least a two-year delay until the amendment is passed and the system is built. On the other hand, the opposing Democratic Party has pledged to allow investors to purchase spot Bitcoin ETFs and is expected to announce a full proposal to institutionalize and revitalize the crypto sector. These developments suggest that crypto has become an election issue in South Korea, especially considering the significant interest in crypto trading among young people in their 20s and 30s. Despite regulatory measures following the collapse of Terra, there is a changing mood towards crypto in the country.
On 22/02/2024, The Hong Kong Securities and Futures Commission (SFC) has experienced a surge in crypto license applications, with 18 applications submitted by both local and global players over two months. Among the latest applicants is Huobi HK, the Hong Kong branch of the crypto exchange Huobi, seeking a virtual asset trading platform license. Other major exchanges like Crypto.com, OKX, Bybit, and DFX Labs have also applied since mid-November 2023. These applicants must undergo stringent due diligence checks, including comprehensive financial audits, with some reportedly investing up to $25 million in their applications. The recent clarity on exchange licensing in Hong Kong has attracted traditional brokerages like Tiger Brokers, which expanded its license to include crypto trading for professional investors and financial institutions. John Fei Zeng, Tiger Brokers’ CFO and director, emphasized the significance of crypto as an asset class and its integration with the company’s fintech background. Additionally, the SFC received its first application for a spot Bitcoin exchange-traded fund (ETF) from Harvest Hong Kong on Jan. 26, signaling increasing interest in crypto investment products in the region.
On 23/02/2024, The assertion that Bitcoin has failed as a global decentralized digital currency and is unsuitable for legitimate transfers persists despite the recent approval of spot exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC). While some view this approval as a validation of Bitcoin’s safety and potential, others, including critics, maintain that Bitcoin’s fair value remains zero. Concerns over Bitcoin’s limited utility for payments, slow transaction speeds, and high costs persist, with regulatory efforts to combat its use in criminal activities largely ineffective. Despite efforts such as El Salvador’s adoption of Bitcoin as legal tender, its use for everyday transactions remains minimal. Furthermore, Bitcoin’s viability as an investment is questioned due to its lack of cash flow, dividends, productive use, or intrinsic value comparable to traditional assets. The continued environmental impact of Bitcoin mining through proof of work mechanisms is also highlighted, with higher prices exacerbating energy consumption and environmental pollution.
Reddit, the social media giant, has been gradually adding small amounts of Bitcoin (BTC) and Ether (ETH) to its treasury since 2022, citing the “significant potential” of crypto and blockchain, according to new filings. The company disclosed in a Feb. 22 initial public offering filing with the United States Securities and Exchange Commission that it has invested some of its excess cash reserves in Bitcoin and Ether. While Bitcoin and Ether are the only cryptocurrencies currently held in Reddit’s treasury as of Dec. 31, 2023, the amounts are described as “immaterial.” Additionally, Reddit has been experimenting with blockchain technology by purchasing Ether and Polygon’s MATIC as a form of payment for certain virtual goods, with the amounts received also deemed “not material” across 2022 and 2023. The company may continue to use Ether and MATIC as payment methods in the future. Furthermore, Reddit’s product and engineering team holds cryptocurrencies for specific uses, although the specific cryptocurrencies and amounts were not disclosed.
On 24/02/2024, Two crypto wallet addresses belonging to Jeff “Jihoz” Zirlin, co-founder of Axie Infinity and Ronin Network, were hacked, resulting in the theft of approximately $9.7 million worth of Ether. The hack, discovered on Feb. 23 by blockchain investigator PeckShield, involved the unauthorized transfer of 3,248 ETH across Tornado Cash. While initially suspected to be a compromise of the Ronin Bridge, co-founder Aleksander Larsen clarified that the bridge itself has robust security measures and suggested a wallet hack instead. Zirlin confirmed the hack, emphasizing that it was not due to vulnerabilities within the Ronin chain or Sky Mavis operations, and reassured the community about the stringent security measures in place. PeckShield identified the root cause of the hack as a “wallet compromise,” enabling the unauthorized outbound transfer of funds.
Crypto exchange Kraken has moved to dismiss a lawsuit filed by the United States Securities and Exchange Commission (SEC) in November, arguing that the lawsuit sets a “dangerous precedent” for the agency’s authority. In its dismissal motion filed with a San Francisco federal court on Feb. 22, Kraken criticized the SEC’s theory, which suggests that there can be an investment contract without a contract, post-sale obligations, or any interaction between the issuer and purchaser. Kraken warned that this theory lacks a limiting principle and could grant the SEC excessive authority over commerce, potentially leading to an expansion of private securities law claims. The exchange argued that the SEC’s allegations failed to establish that the cryptocurrencies traded on its platform were investment contracts under U.S. securities laws, as there was no agreement between Kraken customers and the cryptocurrency issuers. The SEC had sued Kraken last year, alleging unlawful transactions involving “crypto asset securities” and failure to register with the agency as required by law. Kraken also faced accusations of deficient internal controls resulting in the commingling of customer assets with business funds.
On 26/02/2024, As the price of Bitcoin (BTC) hovers between $50,000 and $52,000, investors are anticipating a rally leading up to the upcoming Bitcoin halving scheduled for April 2024. However, JPMorgan, the banking giant, suggests that the impact of the halving event is already factored into the market. Despite this, retail investors are showing renewed interest in cryptocurrencies following a brief lull in January, particularly in popular assets like Bitcoin and Ethereum. Data from JPMorgan indicates that the flow of Bitcoin from smaller wallets, often associated with retail traders, has surpassed that from institutional investors, even after considering inflows into new spot Bitcoin exchange-traded funds (ETFs). With Bitcoin on track for its sixth consecutive month of gains, investors are eyeing several significant developments in the crypto space. These include the Bitcoin halving event, the next major upgrade of the Ethereum network, and the potential approval of spot Ethereum ETFs by the Securities and Exchange Commission in May. While JPMorgan believes that the impact of the first two catalysts is already priced into the market, there is uncertainty surrounding the approval of spot Ethereum ETFs, with only a 50% chance of approval, according to the strategists at JPMorgan.
On 27/02/2024, Senate Republicans are taking a firm stance against the Federal Reserve’s potential creation of a central bank digital currency (CBDC), setting the stage for the issue to become a focal point in the 2024 presidential campaign, as reported by FOX Business. Concerns among conservative lawmakers revolve around the perceived risks of government overreach and privacy infringement, with worries that a CBDC could be exploited to monitor individuals’ financial transactions and potentially control access to funds. The Biden administration has authorized the Fed to explore CBDC issuance as a means to enhance payment efficiency and accessibility, although no definitive decision has been reached on its implementation. Texas Republican Sen. Ted Cruz, alongside fellow senators Bill Hagerty, Rick Scott, Ted Budd, Mike Braun, and Kevin Cramer, is spearheading a new bill named the Central Bank Digital Currency Anti-Surveillance State Act, aiming to address these concerns.
MicroStrategy, led by CEO Michael Saylor, has expanded its Bitcoin holdings with the acquisition of an additional 3,000 Bitcoin for $155 million, bringing its total Bitcoin holdings to 193,000 BTC. The purchase, made between February 15 and 25 at an average price of $51,813 per Bitcoin, solidifies MicroStrategy’s position as the largest Bitcoin holder among publicly traded companies. However, the announcement coincided with an unfortunate incident where MicroStrategy’s social media account was hacked, leading to the posting of malicious links and resulting in over $440,000 being stolen. Despite this setback, senior Bloomberg analysts predict a promising future for Bitcoin exchange-traded funds (ETFs), suggesting that they could surpass gold ETFs in assets under management (AUM) within the next two years. The successful launch of Bitcoin ETFs has already seen significant investor interest, with 10 spot Bitcoin ETFs in the United States amassing a total of 5,500 Bitcoin since their launch on January 11, indicating strong potential for growth and competition with traditional gold investments.
The International Monetary Fund (IMF) has found that Pacific Island countries (PICs) face unique currency needs, which digital currencies could address with the right design features. However, the IMF warned against the use of unbacked cryptocurrencies as national currency due to their risks. PICs, characterized by their small size, diversity, and isolation, have challenges such as reliance on remittances and vulnerability to reduced banking services. Some lack local financial infrastructure entirely. Developing a regional approach to digital money could help overcome scalability issues and economic volatility. However, the IMF cautioned that the digitization process might be lengthy for PICs with inadequate internet connectivity. While cryptocurrencies are present in some PICs, the IMF deemed them inadequate for mainstream use, citing various risks compared to other digital money forms. The IMF’s recommendations for digital solutions in PICs include offline functionality, robust data collection, and upgrades to existing systems for interoperability and programmability.
The nine recently launched spot Bitcoin exchange-traded funds (ETFs) have experienced another day of strong trading activity, with combined volumes exceeding $2 billion for the second consecutive day. This ongoing high demand and interest in these ETFs were described by Bloomberg ETF analyst Eric Balchunas as “another intense volume day for the Nine,” with BlackRock’s ETF setting a new record with over $1.3 billion in daily volume. Balchunas noted that BlackRock’s iShares Bitcoin ETF saw a significant increase in individual trades compared to its average daily trades, while the Fidelity Wise Origin Bitcoin Fund and the ARK 21Shares Bitcoin ETF also recorded substantial daily volumes. This marks the second consecutive day that these nine ETFs have surpassed $2 billion in daily volume since their launch on January 11th. The surge in trading volumes for these Bitcoin ETFs underscores the strong demand and interest among investors for Bitcoin investment vehicles. Additionally, the outflows from Grayscale’s Bitcoin Trust indicate a shift in investor preference towards these newly launched spot Bitcoin ETFs as a means of gaining exposure to Bitcoin in their investment portfolios. This sustained high trading activity suggests a robust appetite for Bitcoin investment products in the market, although it remains to be seen whether this trend will continue or if it is driven by short-term factors such as algorithmic trading or arbitrage opportunities.
On 29/02/2024, United States spot Bitcoin exchange-traded funds (ETFs) have achieved a new milestone in daily trading volumes, surpassing the previous record by more than one and a half times. On February 28th, the ten ETFs collectively recorded $7.69 billion in trading volume, as reported by Bloomberg ETF analyst James Seyffart on X. This figure significantly exceeds the previous record of $4.66 billion set on the ETFs’ launch day on January 11th. BlackRock’s iShares Bitcoin ETF (IBIT) accounted for 43.5% of the total volume, reaching $3.35 billion in trading volume and doubling its previous daily record. The Grayscale Bitcoin Trust (GBTC) ranked second for the day, with $1.86 billion in trading volume, while the Fidelity Wise Origin Bitcoin Fund (FBTC) followed closely with $1.44 billion, also doubling its volume record. Together, GBTC and FBTC comprised about 43% of the total volume. Notably, the nine new ETFs, excluding Grayscale’s, surpassed their previous record in just half a trading day, reaching around $5.8 billion in volume by the close of trading. This surge in trading activity was accompanied by a doubling in the total number of trades, totaling over half a million individual trades among them, as highlighted by Balchunas in subsequent posts on X.
The surge in Bitcoin price between 5:00 and 6:00 pm UTC on February 28th may have led to a disruption in Coinbase services, with numerous reports emerging on social media of accounts suddenly displaying a zero balance. Coinbase acknowledged the issue, stating, “We are aware that some users may see a zero balance across their Coinbase accounts & may experience errors in buying or selling. Our team is investigating this & will provide an update shortly. Your assets are safe.” During the incident, the price of Bitcoin briefly surpassed $64,000 before retracing to $61,400 at the time of publication. Similarly, Coinbase (COIN) stock mirrored this trend, reaching $211 a share as Bitcoin approached its current all-time high of $69,045, but later falling back to $202. COIN’s all-time high of $357 coincided with Bitcoin’s peak on November 10, 2021. The cause of the issue remains unclear, although some users have noted previous instances of technical difficulties on the Coinbase platform.
Gemini, in collaboration with the New York State Department of Financial Services (NYDFS), has reached a settlement that will entail returning at least $1.1 billion to customers of the Gemini Earn Program through the Genesis bankruptcy proceeding. Additionally, Gemini will pay a $37 million penalty for various compliance failures that posed risks to the company’s safety and stability, according to Superintendent Adrienne A. Harris of the NYDFS in a statement released on February 28th. Pending approval by the bankruptcy court, Gemini anticipates that Earn users will recover 100% of their cryptocurrency assets along with appreciation. At current prices, this settlement is expected to return over $1.8 billion in value, exceeding the amount available when Genesis suspended withdrawals on November 16, 2022. Gemini estimates that approximately 97% of these assets will be recoverable within two months.

Oh boy, this month is wild, especially in the crypto market. We can still see the economy is still a bit shaky, especially in the US with more companies announced laid off, and countries like Japan and the UK entered recession. The Reserve Bank of Australia announced the rate is unchanged at 4.35%, and Australia’s monthly CPI indicator for January 2024 is at 3.4%, the lowest we have ever seen since November 2021. China is again trying to manipulate the market and save the economy from a recession. They even banned short-selling, lol. I would expect a rate cut maybe in June because we can see the unemployment is increasing, and 2 of the countries are already in recession. The GDP growth has been slowed down in many countries. Surprisingly, the stock market is still doing quite well. The star of this month definitely belongs to NVIDIA company as they have surpassed the $2 trillion market capitalization. The stock market is still going up despite all the bad news. What could be more crazy than this?

I was so confused about the rise of Bitcoin this month. The craziness in this market is insane. We still see hundreds of millions of dollars being poured into the Bitcoin ETFs every single day. The price of Bitcoin this month has reached the maximum of $64,000, and at the end of this month, it has grown a whopping 43.55%. Microstrategy is still buying more and more, and companies like BlackRock, and Fidelity… are advertising these ETFs everywhere. The highest trading volume this month was recorded at $7.69 billion of all the Bitcoin ETFs, which is an insane number. We are not even approaching the halving day yet and we are almost breaking the previous all-time high, and if it does, this will be the first time we reach a new all-time high before the halving. Let that sink in for a moment. I am glad that I bought Bitcoin aggressively during 2021-2023, and now I can enjoy the result of it.

A massive gain this month – 18.64%. Now, in the past I have seen a gain of 20% but that 20% also includes the contribution inside it, but this 18.64% does not have much contribution, besides the $400 contribution which is far less amount compared to what I got in the past. Therefore, this 18.64% comes mostly from my portfolio, and the biggest gain is from the crypto portfolio. Here are the details of the growth in each investment:

Raiz – 14.92% to 19.05% (up 4.13%).
VDHG – 8.42% to 9.39% (up 0.97%).
IVV – 15.36% to 16.55% (up 1.19%).
SYI – 7.90% to 7.55% (down 0.35%).
VISM – 4.08% to 4.92% (up 0.84%).
A200 – 7.14% to 7.20% (up 0.06%).
Crypto – 5.49% to 55.9% (up 50.41%).

We can categorize the gains into 3 separate groups

Small gains from ETFs, except for SYI which has a negative return this month for some reason. But then I saw that A200 ETF only has a 0.06% increase, which seems to indicate that the Australian market is not performing as well as other markets in general.
Raiz accounts for a moderate gain, which comes from the portfolio + the contribution, which could explain why the higher return compares to other ETFs.
Finally, the crypto portfolio with 50% increase, and this is the first time in my investing journey, seen an increase of 50% in a single month. Bitcoin is the largest asset at the moment in my crypto portfolio so with the recent spike, the current ROI for Bitcoin is sitting around 161%. Other altcoins are also performing quite well because of Bitcoin, which also contributed to a higher return this month.

I am super happy with the result, knowing that I have endured quite a lot in the past 3 years when everyone was panicking and selling their crypto. I bought every week and kept the same habit until I bought my property. To be honest with you guys, I would actually buy more if I didn’t buy the property. However, I think it was a lot of risk and I don’t think I would be willing to take that much risk anyway. Besides, my goal is to diversify my portfolio into different assets so risking everything on one asset would not meet my investing philosophy.

Last month, I was hoping to see the VDHG crossing the $100,000 target, and it’s now sitting at $102,031.08, but to my surprise, the crypto portfolio also breaks the $100,000 target and even surpasses the VDHG to become the largest holding in my portfolio at $109,179.17. A perfect ending for a somewhat perfect month. The combined value of the stock and crypto portfolio is $237,888.46. I remember setting a target goal to reach $300,000 in 2021 (and I know I was young at that time, and expected the crypto would never crash), and now I can see my portfolio is slowly reaching there after 3 years.

My redraw account is at $8,852.38 and still growing every single month. The current remaining estimated loan is at $553,048.36 and slowly going down every single month. I finally got this month’s interest charged, so let’s check it out:

$2,392.31 to $2,235.63 – fixed rate loan
$223.14 to $202.21 – variable rate loan (minimum repayment is at $276.62).

Quite a good reduction in interest I must say and this is just 6 months only since I started last September. Still a long way to pay off my debt but the reduction in interest means I am paying more toward my principal. The total reduction for this month is $177.61. With all the gains this month, my total net worth has increased to $399,840.10, approaching the $400,000 mark. Everything seemed to move faster than I expected. Maybe this is a good thing, but part of me as an overthinker is being cautious. Nah, it should be fine.

Some of the articles I use for the information above:

Passive Income

This month has produced about 12.708 ADA. The staking reward for AXS for this month is 0.969418 AXS. Staking for IMPACT is 3668.96823 PACT. BAT Reward is 3.24 BAT.

To sum up:

ADA Reward – 12.708 ADA.
AXS Staking – 0.969418 AXS.
Impact Staking – 3668.96823 PACT
BAT reward – 3.24 BAT
Dividend – Not available for this month

What I have learnt

Keyword for this month – Leading

I am pretty chill this month. My main focus was to finish the rest of the renovation for the floor and small improvements to the house. It felt quite good to finally get something for the house.

Sanding and Polishing Timber Floor – I hired a local business to do the job. The cost was around $6,000 which is cheap, but I still have to do another 2 bedrooms in the future as my housemates are still living. Though $6,000 is within my budget, I am ok with that. Besides, the guys working on the job also advised me on the fuse box, which led to the next thing on the list.
Arranging an upgrade for the electrical box – turns out the board is quite old and it uses ceramic fuses, which were relatively used back in the 80s. I have contacted one of the recommended electricians on the list from my senior co-worker. It is estimated to cost another $1,400 to upgrade the whole box for safety purposes and I might consider installing solar panels in the future. Since my original budget for the floor was around $7,000 to $8,000, and it only cost me $6,000 for now, therefore $1,400 should be all right to upgrade the box.
Gutter Cleaning – I spent another $500 to get a guy to clean the gutters and downpipes. A lovely person also had pictures to show the current condition of the roof and the finished work. I actually wanted to do it myself but my fear of heights would stop me right there.
Gardening – I was able to prune more branches. I cut down the one on the side of my house first, and will slowly go around the house in the upcoming weeks. Even though I was able to remove a bunch of branches on the floor, the new branches keep piling up more and more now. Well, at least it looks better now with on the side.
Taking care of myself more – I recently experienced really bad negative self-talk. I am the type that always overthinks a lot in most situations. My brain does this most of the time and more often I feel exhausted just by thinking. The result was the lack of sleep in the last couple of weeks. However, I found myself in a better mood by talking and communicating with others. It does help a lot with my mental health.
Being more active in my current role – I found myself communicating with others more on my current work project. My communication skills have improved quite significantly. I am getting more comfortable asking questions to different people at my place. Sometimes, I took the lead for certain things but again, this is just because the project I got had a deadline so I should be more active.

This month is quite a busy month with home renovation and busy with work. My mood was pretty bad last month as I blamed myself for not socializing enough and felt lonely most of the time. I told myself I needed to do something so I did. I talked and shared more with my friends. I took the initiative and talked to my new co-workers at my new desk. These things did improve my mood and allowed me to express my feelings more to other people around me. It’s still a work in progress but I think this is a good start for me. I should start looking to join a club or something, which can boost my confidence and get outside my comfort zone.

I am still not able to control my weight this month. It still fluctuates around 70-71. I found myself eating more recently so I must have gained a bit of weight already. However, let’s do something next month to tackle this issue.

Weight – ordering meal supplements and keep drinking for a month, let’s see if I can lose weight.
Garden – cut more trees and clean the garden. I should go and buy the chemical to kill the roots.

That’s it for this month.

Portfolio Update – February 2024

Portfolio Summary

Events & Porfolio Analysis

Passive Income

What I have learnt

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