Cryptocurrency

Bitcoin Pushes Closer to $50,000 and Global Stocks Mixed

AFP / 07:08 AM February 10, 2021

Bitcoin moved closer to $50,000 for the first time on Tuesday, while the dollar declined as equity traders monitored anticipated US fiscal stimulus and Covid-19 vaccine developments.

Asia’s main stock indices closed stronger, with Tokyo hitting a 30-year high, while the DowJones index edged down from an all-time high following a mixed session in Europe.

Bitcoin

Bitcoin briefly pushed to a record-high of $48,215.83 after winning a huge boost Monday from the news that Elon Musk’s electric car maker Tesla had invested $1.5 billion in the cryptocurrency. It later eased back to a level near $47,335.

Investors remained optimistic about additional government spending, and PresidentJoe Biden met with the CEOs of JPMorgan Chase, Walmart, and other companies to build support for his $1.9 trillion rescue plan.

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Besides stimulus expectations, the market also has been boosted by progress on coronavirus vaccines that have raised hopes for earnings growth in 2021 and beyond.

“Indeed, the good times are rolling in the capital markets, which are acting as if they have more money than they know what to do with, so they just keep doing what’s been working: putting money to work in risk assets,” said Briefing.com analyst Patrick O’Hare.

Stock Outlook and the Economy

Benchmark crude contract Brent North Sea moved further above $60 a barrel on Tuesday thanks to surging demand expectations as economies reopen.

“Oil’s fundamentals are looking strong again on both (the) supply and demand side,” said Edward Moya, analyst Oanda trading group.

Despite demand being down about five million barrels year-over-year, optimism is high that vaccine rollouts will have key parts of the global economy return to normal.

Axistrategist Stephen Innes said the inoculation drive provides the ultimate recovery safety net that will allow people to participate in all those pre-Covid activities like the simple pleasures of going to a movie or having a meal out.

In another sign of more upbeat times, crisis-hit Japanese carmaker Nissan upgraded its full-year forecast again as the global auto industry shows signs of recovery from the coronavirus pandemic.

But US auto giant GeneralMotors extended shutdowns of three factories through at least mid-March due to the global shortage of semiconductors.