Financial: Bitcoin surpasses $90,000 and hits new record highs after MicroStrategy's purchase

Digital Money - Bitcoin rallied on Wednesday and managed to surpass the psychological barrier of $90,000, resuming gains once more amid expectations that US President-elect Donald Trump will be supportive to the crypto industry, and after Microstrategy announced a large purchase of bitcoins. 

 

As demand spikes on crypto assets, the goal for bitcoin now is clearly the coveted $100,000 barrier, which would truly be a historic achievement. 

 

The Price 

 

Bitcoin rose 6.25% at Bitstamp today to $93,483, a record high, with a session-low at $86,263.

 

On Tuesday, bitcoin lost 0.8%, the first loss in eight days on profit-taking.

 

Crypto Market Value 

 

The market value of cryptocurrencies rose by $130 billion on Wednesday to a total of $3.216 trillion, a record high as bitcoin, ethereum, and other major cryptocurrencies rallied.

 

Trump

 

Bitcoin is up 35% so far since Trump’s landslide election victory, with Trump vowing to make the US “the world’s crypto capital” with all mining executed in the US, and regulations reduced.

 

MicroStrategy

 

MicroStrategy announced today a purchase of $2 billion worth of bitcoin between October 31 and November 10.

 

MicroStrategy is a major institutional programming company, specializing in information technology, and has taken a bold investing strategy through buying up bitcoins. 

 

Positive Outlook

 

Citibank analysts expect bitcoin to reach $100,000 following Trump’s victory, due to the upcoming administration’s friendly attitude towards cryptocurrencies and their regulations.

 

US stock indices decline after inflation data

 

Most US stock indices fell on Wednesday after a positive opening, boosted by US inflation data.

 

US consumer prices rose 2.6% y/y in October as expected, after slowing down to 2.4% in September.

 

Core prices, excluding food and energy, rose 3.3% y/y, same as September.

 

On trading, Dow Jones rose 0.1% as of 15:29 GMT to 43,957 points, while S&P 500 fell 0.1% to 5980 points, as NASDAQ shed 0.3% to 19,231 points.

 

Bitcoin backs off record high near $90,000 on US interest rate concerns

 

Bitcoin lost ground on Wednesday away from a record high above $90,000 on active profit-taking.

 

Traders are increasingly concerned about the declining odds of a Fed interest rate cut in December following bullish remarks from some Fed officials. 

 

Now traders await important US inflation data later today for October to gather more clues.

 

Prices

 

Bitcoin fell 2% at Bitstamp today to $86,263, with a session-high at $88,623.

 

On Tuesday, bitcoin lost 0.8%, the first loss in eight days on profit-taking, after hitting an incredible record high at $90,243.

 

Crypto Market Value 

 

The market value of cryptocurrencies fell by $95 billion on Wednesday to a total of $2.992 trillion, as both bitcoin and ethereum rebounded.

 

On Wednesday, the crypto total market value reached an unprecedented high of $3.123 trillion.

 

US Rates

 

Recent remarks by several Fed officials this week were more bullish than expected, thus cutting the odds of a 0.25% December rate cut from 68.5% to 60% according to the Fedwatch tool.

 

JPMorgan’s analysts still expect the Fed to go ahead with its 0.25% interest rate cut in December as a countermeasure to Trump’s inflationary plans, but the bank reduced the pace of subsequent rate cuts to once every quarter. 

 

Now investors await US consumer prices data later today for October to get better clues on the path ahead for US policies.

 

US dollar hits six-month high before US inflation data

 

 

The US dollar rose in European trade on Wednesday on track for the fourth profit in a row, hitting six-month highs amid strong demand on the greenback following Trump’s election victory, and after several bullish statements by Fed officials. 

 

The remarks hurt the odds of a 0.25% Fed interest rate cut in December, with traders now waiting for important US inflation data later today.

 

The Index

 

The dollar index rose 0.25% today to 106.21, the highest since May, with a session-low at 105.89.

 

On Tuesday, the index rose 0.4%, the third profit in a row.

 

Trump’s Ambitions 

 

Analysts believe that Donald Trump’s aggressive plans for immigration, tax cuts, and higher tariffs would impose upside pressures on inflation, treasury yields, and the dollar.

 

JPMorgan’s analysts believe that the Federal Reserve is still expected to cut interest rates by 25 basis points at the December meeting, but it’ll slow down the pace later on to one rate cut per quarter. 

 

US Rates 

 

Recent remarks by several Fed officials this week were more bullish than expected, thus cutting the odds of a 0.25% December rate cut from 68.5% to 60% according to the Fedwatch tool.

 

Now investors await US consumer prices data later today for October to get better clues on the path ahead for US policies.

 

US consumer prices are expected up 2.6% y/y in October, from 2.4% in September, while core prices are expected up 3.3%.