BlackRock's Fed Warning Sparks 50% Bitcoin Crash Fears as 1 Unstoppable Stock Eyes $1 Trillion Club and New Magnificent Seven Stocks Gain Momentum

From an investment perspective, markets are at a critical juncture as BlackRock issues a serious warning regarding the Federal Reserve Board's next steps, which could dramatically impact the crypto landscape. With Bitcoin potentially facing a 50% price crash, investors are bracing for heightened volatility and reassessing their risk exposure.

However, amid this uncertainty, new opportunities are emerging. One unstoppable stock is positioned to potentially join the ranks of trillion-dollar tech giants like NVIDIA, Microsoft, Apple, Amazon, Alphabet Inc., and Meta.

Additionally, a fresh wave of high-growth companies—dubbed the "New Magnificent Seven"—are clearing key market entries, offering investors the chance to capitalize on the next generation of tech leaders.

Balancing risk and opportunity has never been more crucial for savvy investors.

Disclaimer: the Newsletter Investors Board is not an investment advice. The sole purpose of its publication is informative.

BlackRock Issues Serious Fed Warning As Crypto Suddenly Braces For A Predicted 50% Bitcoin Price Crash

In a tense market environment, BlackRock, the world’s largest asset manager, has issued a stark warning for investors. As the Federal Reserve Board’s next policy decisions loom, BlackRock analysts foresee a prolonged period of volatility, with a significant portion of the attention focused on Bitcoin. The flagship cryptocurrency, which saw a sharp drop is now battling a predicted 50% price crash that could send it tumbling toward $30,000.

Despite a brief recovery, with Bitcoin climbing back to $60,000 after hitting $50,000, traders remain cautious. Fears of resurgent inflation and a potentially slower-than-expected rate cut from the Federal Reserve had recently cast a long shadow over market sentiment. BlackRock's strategists, led by Jean Boivin of the BlackRock Investment Institute, warned of "volatility flare-ups ahead" as a confluence of factors—ranging from economic uncertainty to pre-election jitters—takes hold.

Bitcoin's Future Under Scrutiny

BlackRock’s outlook is rooted in its previous view that the Federal Reserve is unlikely to cut rates as quickly as the market has been anticipating. Investors have been pricing in aggressive rate cuts—over 240 basis points over the next 12 months—but BlackRock believes that inflationary pressures over the medium term could cap how far the Fed is willing to go. A recent U.S. jobs report fueled concerns that the Fed might have waited too long to cut rates, potentially tipping the economy into a recession.

For Bitcoin Inc., a slower rate-cut cycle poses a substantial risk. The cryptocurrency has become increasingly sensitive to macroeconomic indicators, with its price closely linked to changes in liquidity conditions. A protracted period of higher interest rates could dampen demand for Bitcoin, leading to further price declines. In a recent note, Bernstein Brokers warned that the price could drop by almost 50%, possibly hitting $30,000.

Adding to the uncertainty is the upcoming U.S. presidential election. According to analysts, a victory for Democratic nominee Kamala Harris (whitehouse.gov/administration/vice-president-harris/) could trigger a sharp downturn in Bitcoin prices, while a win for former president Donald Trump (donaldjtrump.com) might send the cryptocurrency soaring to $90,000, thanks to his recent pro-crypto stance.

The Federal Reserve's Key Role

Market participants had been anxiously awaiting the Federal Reserve's two-day policy meeting on September 17. It was widely expected that the Fed would announce its first post-pandemic rate cut, potentially setting off a new cycle of cheaper borrowing and increased liquidity. However, BlackRock’s analysts had remained cautious, suggesting that while inflation was slowing in the near term, persistent medium-term inflation could limit the extent of the rate cuts. This dynamic had put the market on edge, with investors bracing for rate decisions that could ripple through both traditional and crypto markets. A recent weaker-than-expected U.S. job report had triggered the initial Bitcoin price crash, and the central bank's actions were seen as crucial in determining the next phase of the cryptocurrency’s journey.

The Election and Its Impact on Crypto

The U.S. presidential election is further complicating the picture. In recent debates, crypto has emerged as a key topic, with both major candidates—Kamala Harris and Donald Trump—taking vastly different stances. Harris, viewed as a continuation of the Biden administration's tough regulatory stance on crypto, has been more cautious in her approach. In contrast, Trump has embraced the digital asset space, aligning himself with pro-Bitcoin advocates and positioning himself as the "crypto candidate."

According to a survey by Gemini, 73% of U.S. crypto holders say they will consider candidates' digital asset policies when casting their votes. The crypto industry has already spent $119 million on this election cycle, mostly through super PACs. Market prediction platforms like Polymarket currently show a near-equal split between the candidates, adding another layer of uncertainty for crypto investors.

A Trump victory could spur a major Bitcoin rally, according to market experts, while a Harris win might lead to tighter regulations and a potential market downturn. Analysts with CoinDesk note that after several years of regulatory pressure on crypto, a positive shift in policy could reignite innovation and user engagement within the blockchain space.

Market Volatility and Investor Sentiment

Even as the election unfolds, broader economic factors such as the Federal Reserve's monetary policy and ETF flows will continue to shape market sentiment. Larry Fink, BlackRock’s CEO, has led a Bitcoin revolution on Wall Street, making his firm the first to offer a Bitcoin spot ETF. However, the asset management giant's latest warning underscores that significant risks remain for both Bitcoin and the broader market.

Investors looking to navigate these turbulent waters are urged to stay informed. With interest rate decisions, election outcomes, and crypto policy all at play, the market could experience significant swings in the months ahead. As always, timing the market remains a challenge, but understanding the broader forces at work can help investors make more informed decisions.

With Bitcoin sitting at a crucial crossroads and election-driven market volatility on the horizon, traders are keeping a close watch on the Fed’s next move. Whether it’s a 50% crash or a surge to new highs, the stakes for Bitcoin—and the broader crypto market—have never been higher

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1 Unstoppable Stock That Could Join Nvidia, Microsoft, Apple, Amazon, Alphabet, And Meta In The $1 Trillion Club

Oracle’s Path to the $1 Trillion Club: Could It Join the Tech Giants?

Oracle, a pioneer in database technology and cloud computing, is positioned to become the next trillion-dollar tech giant. With a market cap currently standing at $466 billion, Oracle has been steadily building its momentum, and analysts believe that the company's aggressive push into artificial intelligence (AI) infrastructure could propel it to a $1 trillion valuation in the coming years.

The trillion-dollar club currently includes heavyweights like Apple, Microsoft, Amazon, Alphabet Inc., Meta, and NVIDIA —companies that have transformed industries through innovation. Oracle, however, is gaining ground quickly, thanks to its strategic investments in AI-driven data centers and partnerships with major AI players like OpenAI and Elon Musk's xAI.

Oracle's Competitive Edge in AI Data Centers

At the heart of Oracle’s growth strategy is its Oracle Cloud Infrastructure (OCI) Supercluster, which has become a critical component for AI development. AI applications rely on Large Language Models (LLMs) that process vast amounts of data through advanced graphics processing units (GPUs). Oracle’s data centers, powered by Nvidia’s cutting-edge GPUs, allow developers to scale their operations dramatically—boasting the ability to support more than 32,000 GPUs, with plans to exceed 65,000. This unmatched scalability makes Oracle a preferred partner for AI leaders who need enormous computational capacity to train and develop AI models.

What sets Oracle apart from other data center operators is its emphasis on automation. Oracle's data centers are fully automated, which reduces operational costs and eliminates the human error that can lead to security vulnerabilities. This efficiency allows Oracle to offer faster, cheaper AI training solutions—an attractive proposition for companies looking to maximize their AI capabilities.

Surging Demand and Revenue Growth

Oracle's data center expansion is driving significant revenue growth. In its fiscal first quarter of 2025, Oracle reported $13.3 billion in total revenue, a 7% year-over-year increase, with its OCI segment surging 46%. The rapid growth of its cloud infrastructure business was hindered only by the company's limited number of operational data centers, with many customers still waiting for additional computing capacity to come online.

The company’s remaining performance obligations (RPOs) rose to a record $99 billion, reflecting a 52% year-over-year increase. Oracle signed 42 new deals in the quarter, contributing to the sharp growth in RPOs, as demand for AI-driven solutions skyrockets.

Larry Ellison (forbes.com/profile/larry-ellison/), Oracle’s chairman, has ambitious plans to expand the company's data center footprint tenfold, from its current 85 live data centers to somewhere between 1,000 and 2,000 in the long term. This massive scale-up, combined with Oracle’s automation capabilities, positions the company to meet the growing demand for AI infrastructure.

The Path to a $1 Trillion Valuation

With a current market cap of $466 billion, Oracle's path to a $1 trillion valuation is not far-fetched. If the company’s earnings continue to grow at a conservative rate of 8.8% annually, it could reach that milestone within the next decade. However, given Oracle’s plans to scale its data centers and the rising demand for AI infrastructure, that growth rate could accelerate.

Oracle’s cloud business is not only growing rapidly but also becoming increasingly profitable. As the company builds more data centers and improves efficiency, its profit margins are expected to expand, providing a significant boost to earnings. This profitability, combined with the increasing reliance on AI, will likely make Oracle an even more attractive investment over the coming years.

Should You Invest in Oracle?

While Oracle is well on its way to joining the ranks of trillion-dollar companies, it’s important to remember that the company’s stock is not without risk. Oracle’s price-to-earnings (P/E) ratio is currently 40.2, higher than the Nasdaq -100 technology index’s P/E ratio of 30.7. Investors are paying a premium for Oracle’s stock, driven by its growth prospects in the AI space.

However, if Oracle can successfully expand its data center footprint and capitalize on the booming demand for AI infrastructure, the company is poised for long-term success. Investors who buy Oracle stock today could see substantial returns as the company continues to grow its cloud business and expand into new markets.

While Oracle wasn’t included in The Motley Fool's top 10 stock picks, it remains a compelling investment for those looking to capitalize on the AI revolution. With its strong positioning in AI infrastructure and plans for massive expansion, Oracle could become the next unstoppable force in tech—and potentially the newest member of the trillion-dollar club.

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The New Magnificent Seven? These Stocks Not Named NVIDIA Are Clearing Entries

As investors have flocked to the well-known Magnificent Seven - NVIDIA, Tesla, Microsoft, Amazon, Apple, Alphabet Inc., and Meta—other high-performing stocks are breaking out, offering compelling opportunities. While the likes of Nvidia (NVDA) have dominated headlines, companies such as Arista Networks (ANET), GE Aerospace (GE), Spotify Technology (SPOT), and Interactive Brokers (IBKR) are also clearing key technical levels, making them stocks worth watching.

With the Federal Reserve Board's recent interest rate cut driving market enthusiasm, several stocks are entering buy zones (according to investors.com), positioning them for potential gains. Here’s a look at some of these emerging contenders, not named Nvidia, that could follow in the footsteps of the original Magnificent Seven.

1. Arista Networks: The Networking Giant

Arista Networks, a leader in high-performance networking technology, is gaining momentum. Its stock recently broke out of a consolidation pattern, clearing a buy point of 376.50. The company’s relative strength (RS) line, a key indicator of performance compared to the broader market, is also spiking.

Arista’s technology is crucial for cloud infrastructure, with clients like Microsoft, Meta Platforms, and Oracle relying on its computer network switches to enhance data center efficiency. With an IBD Composite Rating of 96 and an impressive 62% stock price gain year-to-date, Arista is well-positioned as a potential alternative to Nvidia in the AI infrastructure space.

2. GE Aerospace: The Crown Jewel of Aviation

GE Aerospace, which emerged from the remnants of the old GE conglomerate, is making its mark in the aviation industry. The stock has found support at its 50-day moving average and is now clearing a key buy point of 177.20. It has rallied over 83% so far in 2024, thanks to strong demand for its jet engines and aviation systems.

With a perfect IBD Composite Rating of 99, GE Aerospace has shown robust growth, both in its core business and in its aftermarket services for engine repair and maintenance. As air travel rebounds and demand for new aircraft grows, GE Aerospace is primed to benefit from the long-term aviation recovery.

3. Spotify Technology: The Streaming Giant

Spotify, the global leader in music streaming, is having a banner year. Its stock recently entered a buy zone at 359.38, and its RS line has reached new highs, a bullish signal for investors. Spotify has gained nearly 94% year-to-date, and analysts remain optimistic about its future growth.

Pivotal Research Group recently raised its price target for Spotify to $510, making it the highest target on Wall Street. With strong earnings growth and increasing adoption of its platform, Spotify is poised to continue its upward trajectory, even as it competes with streaming giants like Apple, Amazon, and Alphabet.

4. Interactive Brokers: Leading the Charge in Digital Trading

Interactive Brokers, a major player in electronic trading, has cleared a consolidation buy point of 129, with its stock up 60% so far in 2024. The company’s earnings surged 33% in the most recent quarter, and its strong price performance has earned it a perfect IBD Composite Rating of 99.

Founded in 1978, Interactive Brokers operates the largest electronic trading platform in the U.S., and its robust growth in earnings and trades makes it a solid pick for investors looking to capitalize on the increasing digitization of financial markets.

5. Shift4 Payments: A Leader in Payment Processing

Shift4, a company that provides payment processing services, is also gaining attention. Its stock is in a buy zone after clearing a cup-with-handle entry at 83.64. Shift4 has shown strong earnings growth, with its EPS rising an average of 32% over the past three quarters.

The firm is expected to continue growing rapidly, with earnings projected to increase by 32% in 2024. With its membership in the IBD Sector Leaders list, Shift4 is considered one of the top performers in the payment processing sector, benefiting from the continued expansion of digital payments.

6. Monday.com: The Workflow Automation Pioneer

Monday.com, an enterprise software company specializing in workflow automation, is also seeing a surge in its stock price. It recently cleared a buy point at 272.77, rallying 5% in a single session. Big institutional investors have been snapping up the stock, and the company's RS line is moving upward, indicating strong demand.

Monday.com’s software is designed to improve productivity for businesses, and its earnings are projected to grow by 53% in 2024. With a solid business model and increasing adoption, Monday.com is well-positioned to capture a growing share of the enterprise software market.

7. Broadcom: An Alternative AI Play

Broadcom is another chipmaker benefiting from the AI revolution, serving as a less expensive alternative to Nvidia. The stock has rallied nearly 4% recently and is now in a buy zone (according to investors.com), with its IBD Composite Rating of 98 reflecting strong overall performance.

Broadcom’s custom chips are critical for enabling AI in data centers, networks, and connected devices. As companies look to harness AI's potential, Broadcom’s products will be essential for implementing these advanced technologies.

The New Magnificent Seven?

While Nvidia and other tech giants have dominated headlines, a new group of emerging stocks is breaking out and showing strong potential. From Arista Networks’ dominance in cloud infrastructure to Spotify’s leadership in streaming, these companies are well-positioned for future growth. Investors looking to diversify beyond the established Magnificent Seven should keep an eye on these breakout stocks as they continue to gain momentum in 2024 and beyond.

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Conclusion

As markets face heightened uncertainty amid the Federal Reserve's decisions and potential Bitcoin price crashes, investors must navigate a volatile environment with careful attention to both risks and opportunities.

BlackRock's warning underscores the potential for prolonged market turbulence, especially for cryptocurrencies. Yet, amid these challenges, there are emerging opportunities, such as Oracle’s path to joining the trillion-dollar tech giants and a fresh wave of high-growth companies—like Arista Networks and Spotify—gaining traction.

For savvy investors, the key lies in balancing risk and capitalizing on transformative industries, such as AI and cloud infrastructure, that are driving the next generation of tech leaders. While Bitcoin's future remains uncertain, the broader tech market presents compelling opportunities for long-term growth, positioning investors to benefit from innovation and market shifts.

Disclaimer: the Newsletter Investors Board is not an investment advice. The sole purpose of its publication is informative.

Sources: Forbes.com Fool.com Investors.com

Apple NVIDIA Meta Oracle Alphabet Inc. Tesla Microsoft Amazon Federal Reserve Board BlackRock Bitcoin Inc. Gemini CoinDesk OpenAI xAI The Motley Fool Nasdaq Arista Networks Spotify GE Aerospace Interactive Brokers Shift4 monday.com Broadcom Pivotal Research Group

#Bitcoin #Crypto #Volatility #FedPolicy #FederalReserve #InterestRates #Inflation #MarketVolatility #CryptoMarket #InvestmentOpportunities #Investors #RiskManagement #USElection #CryptoRegulation #AIRevolution #AIInfrastructure #OracleTrillionClub #Stocks #TechGiant #TechStocks #Cloud #CloudComputing #HighGrowthStocks #MagnificentSeven #NewMagnificentSeven #AI #ArtificialIntelligence #Economy #StockMarkets #AIStocks #InvestorStrategy #LongTermGrowth #DigitalAssets #Innovation #Technology #DataCenters #AIInnovation #TrillionDollarValuation #AITrends #AIInvestment #TechGrowth

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