Bitcoin rose on Thursday and expanded the gains for the third straight session, shattering new records after surpassing $110,000 for the first time ever.
It comes amid a huge surge on crypto assets amid optimism about US regulatory conditions that would be supportive to the industry.
The Price
Bitcoin rose 2% at Bitstamp to $111,888, a record high, with a session-low at $109,252.
On Wednesday, bitcoin rose 2.65%, the second profit in a row following a new round of corporate purchases.
Crypto Market Value
The market value of cryptocurrencies rose by over 110 billion on Thursday to a total of $3.629 trillion, a January high.
Bitcoin as a Safe Haven
Bitcoin is emerging as a haven for investors looking for alternatives to traditional US assets, which are facing severe fluctuations currently.
Concerns about the massive US fiscal deficit and lower demand on US treasury notes are bolstering shifts towards crypto assets such as bitcoin.
US Fiscal Developments
US President Donald Trump convened with his Republican allies in the House of Representatives but failed to convince them to support his tax reform bill, with hawks insisting the bill doesn’t cut spending far enough.
Weak demand on a recent US 20-year treasury note auction, and the “Sell America” mindset, also piled up on the dollar and Wall Street.
The markets are already on edge after Moody’s decision to cut the US credit rating by one notch.
Crypto trading platform Nexo’s co-founder Anthony Trenchef hailed a new period of optimism for bitcoin as it passed its January highs and rose over 50% from April lows.
He believes that bitcoin is entering its best historical years yet, with the $150,000 remaining a viable goal in 2025.
Sterling rose in European trade on Thursday and expanded the gains for the fourth straight session against the US dollar, trading near a three-year high.
UK consumer prices rose by the fastest pace in 14 months, renewing inflationary pressures on Bank of England policymakers and hurting the odds of a rate cut in June.
Now traders await crucial UK data later today that will provide clues on the pace of GDP growth in the second quarter of the year.
The Price
The GBP/USD price rose 0.2% today to $1.3441, with a session-low t $1.3405.
The pound rose 0.2% on Wednesday against the dollar, the third profit in a row, scaling a three-year peak at $1.3469 following hot UK inflation data.
US Dollar
The US dollar index fell 0.2% on Thursday on track for the fourth loss in a row, trading near a two-week trough at 99.34 against a basket of major rivals.
US President Donald Trump has so far failed to convince his Republican allies to pass his aggressive tax reform bill, with investors also growing concerned that US officials might try to weaken the dollar in current G7 talks in Canada.
UK Rates
UK consumer prices rose 3.5% y/y in April, up from 2.6% in March, and passed estimates of a 3.3% rise.
The data renewed inflationary pressures on the Bank of England policymakers, and tanked the odds of a June 0.25% rate cut from 25% to 15%.
Now traders await important UK data on various sectors to gather even more clues on the second quarter performance.
The UK GDP grew by a brisk 0.7% in the first quarter, beating estimates of a 0.6% rise and compared to the 0.1% growth rate in the last quarter of 2024.
The yen rose in Asian trade on Thursday on track for the eighth daily profit in a row against the dollar, hitting a two-week high on strong haven demand amid concerns about US financial stability.
The rise also comes after bullish remarks by the Bank of Japan Deputy Governor this week, which boosted the odds of a BOJ rate hike this year.
The Price
The USD/JPY price fell 0.35% today to 143.14 yen per dollar, the lowest since May 7, with a session-high at 144.40.
The yen rose 0.6% on Wednesday against the dollar, marking the seventh profit in a row, the longest such streak of daily gains since April 2021 on haven demand.
US Fiscal Developments
US President Donald Trump convened with his Republican allies in the House of Representatives but failed to convince them to support his tax reform bill, with hawks insisting the bill doesn’t cut spending far enough.
Weak demand on a recent US 20-year treasury note auction, and the “Sell America” mindset, also piled up on the dollar and Wall Street.
The markets are already on edge after Moody’s decision to cut the US credit rating by one notch.
Exchange Rate
Japan’s finance minister Katsunubo Kato and US Treasury Secretary Scott Bessent both agreed that the current USD/JPY forex rate reflects fundamental factors.
The both reasserted both countries’ commitment to maintain an exchange rate decided by market forces.
Japanese Rates
Bank of Japan Deputy Governor Shinichi Uchida said the bank will continue to raise interest rates if the economy recovers from the negative impact of US tariffs, however he still cautioned that the economic outlook remains highly uncertain.
During a Diet session, Uchida said that main inflation will likely settle near the bank’s 2% target as long as local economic activities pick up.
Following the remarks, the odds of a BOJ rate hike in June rose from 25% to 30%.
Now traders await important Japanese data on inflation, unemployment, and wages to gather more clues.
US stock indices fell on Wednesday and expanded the losses after a weak treasury note auction.
Stocks are pressured by higher US treasury yields, which could hurt the prices of most other investments, amid concerns about ongoing tax cut plans in Washington, which would add trillions of dollars to the US debt pile.
US 30-year treasury yields rose to 5.08%, the highest since October 2023, while 10-year yield reached 4.59%.
At the close, Dow Jones fell 1.9%, or 817 points to 41,860 points, with a session-low at 41,785 points.
S&P 500 fell 1.6%, or 96 points to 5844 points, with a session-low at 5831 points.
NASDAQ slid 1.4%, or 270 points to 18,872 points, with a session-low at 18,799 points.