We're approaching the end of the first month of 2023, which seems to have been going by without any shocking events and spectacular game-changers so far. Eurozone inflation shrank, so now we're wondering what would be the next ECB's move, Bitcoin sentiment seems to be improving and the only events, which could turn the tide are at least two earnings reports of the tech companies - Tesla and Microsoft. Today, we publish some comments on these three threads prepared by Serhii Zhdanov, CEO of the crypto exchange, EXMO.com.

Provided Eurozone inflation is less than 10% on Wednesday, would you expect the ECB to implement a series of 25bp rate hikes?

At the moment, the Eurozone is not going through the best period. Many countries are on the verge of recession. For instance, the European Central Bank (ECB) is already taking steps to prevent the default of payments by Italy. Looking at the dynamics of the Consumer Price Index, there is a possibility that the ECB will still raise the rate by 50bp. After 3%, the regulator will most likely raise it by 0.25%. A strong labour market makes it possible for European Central Banks to act hawkish. Monetary policy will remain tight until at least the summer of 2023.

The optimal price for bitcoin will be between the $25,000-$27,000 zone with a short-term correction to $20,000

For bitcoin and the entire crypto market, 2022 turned out to be a very difficult year. We saw a cascade of bankruptcies that hurt digital asset rates. However, this also contributed to the cleansing of the industry, making investors more responsible towards their investments and examining risk management.

In the near future, we expect the price of Bitcoin to stabilise and enter the consolidation zone with periodic liquidations of long and short positions.

The optimal price for bitcoin will be between the $25,000-$27,000 zone with a short-term correction to $20,000. Closer to summer, the first cryptocurrency can cost more than $30,000, provided that investors once again have faith in high-risk assets. The monetary policy will become softer due to the weakening of the labour market.

Read next: There Have Been Concerns That Tesla Price Cut Could Trigger A Price War| FXMAG.COM

As for Microsoft, the company will cut 11,000 jobs. This is approximately 5% of the total staff. It can be seen that the company feels the pressure of adverse economic factors

This reporting season is expected to be challenging. Banks that reported first, presented mixed results (according to the old tradition: the banking sector sets the dynamics for the entire reporting season). Already, we now see how companies optimise their business. For instance, JPMorgan's board cut CEO Jamie Dimon's "special award". The board granted Dimon a base salary of $1.5 million and performance-based variable incentive compensation of $33 million. Reduction in payments also took place with Apple’s CEO, Tim Cook.

As for Microsoft, the company will cut 11,000 jobs. This is approximately 5% of the total staff. It can be seen that the company feels the pressure of adverse economic factors. According to their financial report, a profit of $53.14 billion and an Earnings Per Share (EPS) of 2.33 are expected. If the figures are below expectations, then we can expect a decline in quotations. Much more interesting to see the forecast for the next quarter. The U.S. economy is slowing down, so the forecast may not be optimistic, which will create selling pressure.

Tesla is also feeling bearish pressure. Starting with production problems in China, a slowdown in sales in the U.S. and problems with Elon Musk’s image caused by recent scandals. It can be seen how Musk himself is trying to reduce his stake in the company (for example, by buying Twitter), as he understood that Tesla shares are quite overbought.

The company's shares have fallen by 75% from their peak, that’s why even a mixed or negative report can pump the price a little. There is a possibility of fixing short positions. EPS expectations of 1.16 are able to reach the target, but there are doubts that Tesla will be able to show income more than the expected $25.16 billion. There is a possibility that income will turn out to be even lower which was shown in the company’s previous report. It’s worth paying special attention to the level of $100 per share. Below this mark, investors can exit their positions and push the price closer to $90.