It’s inflation day. Consensus estimates see October CPI rising 2.6% on a year-over-year basis, which would be higher than the 2.4% seen the month prior.

Look for the data at 8:30 a.m. ET.

Until then, let’s turn our focus to two publicly-traded crypto companies.

If this was forwarded to you, sign up to receive this newsletter directly in your inbox.

Bitcoin is uplifting other winners

History tells us that the president hardly changes the trajectory of financial markets, yet crypto-savvy traders today seem to have forgotten the lore. 

While assets of all shapes and sizes have enjoyed a broad and sharp rally in the week after Donald Trump won the White House, bitcoin has emerged as the star of the show. 

The world’s largest crypto continued to break its own records Tuesday even as equity indexes cooled, hitting $90,000 for the first time.

It’s up more than 100% in 2024, which puts it on track to notch back to back years of triple-digit returns.

Call it the bitcoin effect or the Trump Trade, two public crypto companies have seen a similar post-election rally that have far outpaced the S&P 500’s 4% gain.

Michael Saylor’s MicroStrategy, for one, is up nearly 60% since the day before the election. The company holds 279,420 bitcoins worth roughly $24.5 billion at current prices.

That crypto stash has turned the company into a proxy bet on bitcoin’s continued appreciation. 

To start the trading week, MicroStrategy officially returned to a record high it set 24 years ago as crypto exuberance ballooned.

Management announced at the end of October it plans to raise then spend $42 billion to fund more token purchases.

Meanwhile, Coinbase has gained roughly 70% since last week. In an interview with CNBC Tuesday, CEO Brian Armstrong alluded to the new administration as reason for the improving outlook for the digital asset industry.  

“I think we finally have a chance to get some regulatory [clarity] in the U.S. about some of these big open issues that frankly, under Gary Gensler, we just haven’t gotten any clarity for a long time,” Armstrong said. 

Coinbase and MicroStrategy shareholders — and bitcoin bulls — seem to agree. 

Comments or feedback? Reply directly to this email or let me know on X @philrosenn.

Elsewhere:

🐕️Trump names Elon Musk to helm DOGE, or the Department of Government Efficiency. The president said Vivek Ramaswamy will also lead the new department, which will aim to cut government spending and minimize bureaucracy. Trump described the initiative as “potentially, the ‘Manhattan Project’ of our time." (Axios)

🛑 An inflation surprise could pause the Fed. That’s according to Minneapolis Fed President Neel Kashkari, who I saw at the Yahoo Finance Invest conference Tuesday. In his view, the central bank may have to reconsider another rate cut if inflation surprises to the upside over the next month. (Yahoo Finance)

🥇Gold keeps dropping. The precious metal fell for a third session in a row Tuesday and the fourth in the last five. Analysts point to a looming Trump presidency and odds of higher-for-longer interest rates as reason for the decline. All the while, bitcoin has moved in the opposite direction. (Barron’s)

Rapid-fire:

• OPEC+ cut its forecast for global demand growth in 2024 and also lowered its projection for 2025 to mark the group’s fourth straight downward revision (CNBC)

• Trump’s cabinet picks, including Mike Waltz, signal a tougher stance on China (Financial Times)

• The cryptocurrency dogecoin has rallied so much in the last week it’s surpassed the market cap of Ford (Business Insider)

• Spotify stock jumped in after-hours trading following upbeat guidance for the months ahead, even as it reported weaker-than-forecast revenue (CNBC)

• Home Depot reported that customers are spending less money in their stores and avoiding or postponing large discretionary purchases (The Street)

• Shares of Rocket Lab jumped 25% as it announced its first customer for the upcoming Neutron vehicle during its earnings (CNBC)

Last thing:

Interested in advertising in Opening Bell Daily? Email [email protected]