On Thursday, Bitcoin crossed the $100,000 threshold for the first time in its history, coinciding with a rise in Asian stock markets, which drew inspiration from a record-setting rally on Wall Street.
While U.S. futures showed a slight decline, oil prices experienced a modest increase. Bitcoin had been inching closer to the $100,000 mark and surged dramatically late Wednesday, U.S. time, following the announcement that President-elect Donald Trump had nominated Paul Atkins, a known advocate for cryptocurrencies, to lead the Securities and Exchange Commission. Since Election Day on November 5, when Bitcoin was valued at $69,374, it has experienced a notable climb. As of 11 p.m. ET, Bitcoin was trading at $103,308.27, reflecting a 4.7% increase.
In South Korea, the Kospi index fell by 0.6%, settling at 2,449.74. This decline extended a previous drop of 1.4%, as President Yoon Suk Yeol faced potential impeachment after he abruptly declared martial law late Tuesday, only to revoke it six hours later. On Thursday, Yoon accepted the resignation of his defense minister amid escalating political tensions, with opposition parties moving to impeach both officials. A joint motion to impeach President Yoon was submitted by the Democratic Party and several smaller opposition parties over his controversial declaration.
Market Trends in Asia
Across Asia, other markets displayed varied performances. Japan's Nikkei 225 index rose 0.4% to reach 39,435.89, while Australia's S&P/ASX 200 increased by 0.2% to 8,480.80. Conversely, Hong Kong's Hang Seng index dropped 1.1% to 19,516.98, and the Shanghai Composite gained 0.2%, closing at 3,370.18. Taiwan's Taiex increased by 0.3%, and India's Sensex saw a slight rise of 0.2%.
Stephen Innes, managing partner at SPI Asset Management, remarked on the situation, stating, "As the dust settles and a fragile calm returns to the Korean markets, Asia braces for a bouncy Thursday. The mood is buoyed further by a fresh wave of record highs on Wall Street." The optimism was partly fueled by positive discussions surrounding the artificial intelligence boom among tech companies.
Wall Street's Record Highs
On Wednesday, U.S. markets received a boost from upbeat comments from tech firms regarding advancements in artificial intelligence. The S&P 500 index rose by 0.6% to close at 6,086.49, marking what is anticipated to be one of its most successful years in two decades. This was the 56th time the index reached an all-time high this year, following gains in 11 of the last 12 trading days. The Dow Jones Industrial Average climbed 0.7% to 45,014.04, while the Nasdaq composite surged by 1.3%, closing at 19,735.12.
Salesforce's shares jumped 11% after the company posted stronger-than-expected revenue for the latest quarter, despite a slight miss on profit. CEO Mark Benioff emphasized the transformative impact of their artificial intelligence offerings, noting that "the rise of autonomous AI agents is revolutionizing global labor, reshaping how industries operate and scale."
Nvidia, a key player in the AI sector, saw its stock increase by 3.5%, significantly contributing to the upward momentum of the S&P 500. Retailers have presented mixed signals regarding consumer resilience, as spending has been a crucial factor in the U.S. economy's ability to avoid a recession, previously considered likely after the Federal Reserve's interest rate hikes aimed at curbing inflation. However, consumers are now facing persistent high prices and a slowing job market.
Upcoming Economic Indicators
A key focus for Wall Street this week is the jobs report from the U.S. government scheduled for release on Friday, which will provide insights into employment trends. There are growing expectations that the Federal Reserve may lower its main interest rate again during its upcoming meeting in two weeks. The Fed began easing rates in September from a two-decade high, seeking to bolster the job market.
Initially, the central bank appeared set to continue its rate cuts into the following year, but the election of Donald Trump has created some uncertainty regarding Wall Street's expectations. Trump's inclination toward higher tariffs and certain policies could lead to increased inflation, potentially altering the Fed's strategies.
Federal Reserve Chair Jerome Powell stated on Wednesday that the central bank is in a position to cut rates cautiously, given that inflation has slowed since its peak two years ago and the economy remains resilient.
Bond and Commodity Markets
In the bond market, the yield on the 10-year Treasury note decreased to 4.18% from 4.23% late Tuesday. Meanwhile, early Thursday saw benchmark U.S. crude oil prices rise by 6 cents to $68.60 per barrel, with Brent crude, the international standard, also gaining 6 cents to reach $72.37 per barrel.
In currency trading, the U.S. dollar dipped to 150.29 Japanese yen from 150.62 yen, while the euro rose slightly to $1.0525 from $1.0510.
Understanding Bitcoin
Bitcoin (BTC) is a decentralized cryptocurrency designed to function as a form of money and a payment method independent of any central authority. This characteristic eliminates the necessity for trusted third parties, such as banks or mints, in financial transactions.
Introduced to the public in 2009 by an anonymous entity known as Satoshi Nakamoto, Bitcoin has grown to be the most recognized and largest cryptocurrency globally, inspiring the creation of numerous other digital currencies.
The Genesis of Bitcoin
In October 2008, Nakamoto announced his work on a new electronic cash system characterized by a fully peer-to-peer architecture with no reliance on trusted intermediaries. This groundbreaking concept was encapsulated in a white paper titled "Bitcoin: A Peer-to-Peer Electronic Cash System," published on Bitcoin.org, which has since served as the foundational document for the cryptocurrency's operations.
Zainab Y.
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