Bitcoin has struck a record above $65,000 after its foray onto Wall Street.
Gatekeepers News reports that Bitcoin hit a high record on Wednesday, a day after its foray onto Wall Street, as stocks largely held steady.
As investors tracked earnings and economic data, the dollar was mixed against its main rivals, while oil prices retreated.
The rise in the Bitcoin to above $65,000 comes a day after a financial instrument dedicated to the unit made its debut on the New York Stock Exchange.
Rather than directly to the currency, the new exchange-traded fund linked to bitcoin, the Bitcoin Strategy ETF futures rose nearly five percent on its first day of trading on Tuesday.
The fund which could boost trading in the cryptocurrency should be a more accessible vehicle for mainstream investors.
ThinkMarkets analyst Fawad Razaqzada said, “There is a possibility that the impact of the ETF’s launch might already be priced in, and we could see some ‘buy-the-rumour, sell-the-fact’ type of reaction in the days ahead.”
While commenting on bitcoin’s volatility, he said it could also “easily break the record high, before potentially climbing towards $70,000… which is the next psychological hurdle.”
Asian stock markets mostly closed higher Wednesday as Hong Kong led the gains, jumping more than one percent.
The market heavyweight Alibaba followed as reports disclosed that founder Jack Ma was on a trip to Europe fanning hopes that China’s long-running crackdown on the firm may have run its course.
In the afternoon trading, European stocks near the break-even line with Paris up marginally, and London and Frankfurt dipping.
Meanwhile, Wall Street’s main indices opened with modest gains as strong profit reports from big-name firms over the past week have reinforced optimism that the corporate sector is.
These weathers a recent slowdown in economic growth, supply chain issues, and surging inflation, providing a much-needed boost to worried traders.
Market Analyst JJ Kinahan at TD Ameritrade said, “So far, a trend among consumer staple goods appears to be developing as a positive theme, which means these important goods are at least getting to market.”
Johnson & Johnson, United Airlines, and Netflix added up to top Wall Street banks, including JPMorgan Chase, Bank of America, and Morgan Stanley which recognised the latest positives from the reporting season.
However, rising prices and the end of central bank largesse continued to cast a shadow.
Meanwhile, the concerns about surging inflation running out of control have forced several central banks to hike interest rates already with others planning to follow suit and the prospect of an end to the era of cheap cash has caused an 18-month equity rally to stutter.
In September, British annual inflation cooled slightly as official data showed on Wednesday, remaining close to a nine-year peak that still risks a UK interest rate rise next month.
Despite all these, analysts expect the Bank of England to raise its main interest rate from a record-low level of 0.1 percent by next month.
While some nations have already started the tightening cycle, all eyes are on the Fed owing to its oversized role in the global economy.
Key figures around 1330 GMT
Bitcoin – UP 5.0 percent at $65,996 (1355 GMT)
London – FTSE 100: DOWN 0.2 percent at 7,205.28 points
Frankfurt – DAX: DOWN 0.2 percent at 15,492.91
Paris – CAC 40: UP less than 0.1 percent at 6,674.58
EURO STOXX 50: UP less than 0.1 percent at 4,168.74
New York – Dow: UP less than 0.1 percent at 35,482.79
Tokyo – Nikkei 225: UP 0.1 percent at 29,255.55 (close)
Hong Kong – Hang Seng Index: UP 1.4 percent at 26,136.02 (close)
Shanghai – Composite: DOWN 0.2 percent at 3,587.00 (close)
Dollar/yen: DOWN at 114.26 from 114.39 yen at 2040 GMT
Euro/dollar: UP at $1.1639 from $1.1636
Pound/dollar: DOWN at $1.3783 from $1.3793
Euro/pound: UP at 84.45 pence from 84.35 pence
Brent North Sea crude: DOWN 0.8 percent at $84.41 per barrel
West Texas Intermediate: DOWN 1.0 percent at $82.13 per barrel.
