Finimize - 🏃‍♀️ Bitcoin miners are bailing

Hi Reader, here's what you need to know for July 6th in 3:11 minutes.

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Today's big stories

The euro is getting closer to parity with the US dollar
One bitcoin indicator is poised to flash a buy signal, even as miners switch off their machines in their droves – Read Now
Buffett-backed BYD is now the world’s biggest EV maker

Bad Value

What’s Going On Here?

The euro fell to its lowest level against the US dollar in two decades on Tuesday.

What Does This Mean?

The US Federal Reserve (the Fed) and the European Central Bank (the ECB) have taken two very different approaches to inflation in the last few months. The Fed’s opted to raise rates by 1.5% this year, and markets are pricing in another 0.75% later this month. The ECB, meanwhile, is taking a softly-softly approach: the central bank hasn’t even started hiking rates, and a string of weak economic data has traders betting that it’ll raise them just 1.4% this year when it eventually does.

This divergence has had a knock-on effect on the countries’ respective currencies, as the prospect of higher interest rates in the US makes the greenback more attractive to international savers and investors. Ipso facto: the euro has dropped to its weakest level versus the US dollar since 2002, and Bloomberg analysis suggests there’s now a 60% chance that they’ll reach parity by the end of the year (tweet this).

Why Should I Care?

The bigger picture: Keep an eye out.
This dynamic will probably get a mention when US companies report their quarterly earnings over the next few weeks. On the one hand, it makes European imports cheaper, reducing the firms’ costs on that front. But it also makes US companies’ exports more expensive for their European customers, which means they risk losing business to cheaper rivals. What’s more, any US firms with a big European presence – think Coca-Cola and Ford – will have found those sales worth less once they were converted back into dollars.

For you personally: How about a road trip instead?
This news might alter your vacation plans too. If you’re an American with aspirations of traveling Europe, now’s the time: you’ll get a lot more for every dollar you spend over there. But if you’re a European who wants to visit the glittering bastion of democracy in person, it’ll cost you.

You might also like: The Fed could be ready to get even more aggressive.

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Analyst Take

Even Bitcoin Miners Have Thrown In The Towel

By Jonathan Hobbs, Analyst

Bitcoin miners are a difficult breed to spook.

But another 37% drop in bitcoin’s price in June seems to have done just that, with more and more of them switching off their machines.

Now, you’d be forgiven for thinking this is yet another nail in the coffin of the OG crypto. But one proven indicator actually suggests this is the first of three promising signals.

The second of those signals flashed yesterday, meaning there’s only one left: the buy signal.

This buy signal has only flashed 13 times since 2012, and would’ve got you into bitcoin near the bottom of the 2015 and 2018 bear markets, as well as about a month into the Covid crash.

So that’s today’s Insight: how this indicator works, and when that final signal is going to flash.

Read or listen to the Insight here

There’s nothing like the big screen

If you had the choice, you’d watch your favorite movies on a private theater screen every time.

Well now you can do the same with your investments: Ledger’s brand new wallet – the Nano S Plus – comes with a bigger screen to give you the smoothest experience possible.

That souped-up screen helps you make and verify your transactions clearly and easily. That’ll come in handy when Ledger offers you over 5,500 digital assets to trade.

And that’s not all: the new Nano S Plus also comes with more memory than before, so you can install over 100 apps at the same time.

Discover that big screen experience: check out Ledger’s brand new Nano S Plus.

See the Nano S Plus