Cryptocurrencies gained ground on Thursday with bitcoin heading for the third straight profit, about to scale two-week highs amid a spike in positive sentiment. 

The gains come amid increasing institutional support from major corporations, while Wall Street rebounded, led by automakers. 

The Price

Bitcoin rose 2.5% at Bitstamp today to $92,790, with a session-low at $89,995.

On Wednesday, bitcoin rose 3.9%, marking the second profit in a row and moving away from a three-month trough at $78,197.

Crypto Market Value 

The market value of cryptocurrencies rose by $75 billion to a total of $3.140 trillion.

MetaPlanet

Japan’s MetaPlanet corporation continued to expand its holdings of bitcoin, adding 497 more units this week at a value of $43.9 million, with an average price of $88,448, with the company’s total holdings rising to 2888 units valued at $240.2 million.

This mirrors US Microstrategy’s crypto hoarding strategy, and shows increasing institutional confidence in bitcoin as a strategic reserve.

Wall Street

US stock indices rebounded strongly on Wednesday with major indices marking huge profits off four-month lows.

The White House decided to provide exemptions to automakers from the 25% tariffs on Mexico and Canada for a month as negotiations continue. 

The US dollar fell in European trade on Thursday against a basket of major rivals, expanding losses for the fourth straight session and plumbing a four-month low amid a heavy selloff. 

Positive sentiment is dominating the market after German parties announced massive stimulus plans, while Donald Trump decided to exempt cars from the tariffs on Mexico and Canada.

Now markets await important US labor data, which could provide crucial pricing to the odds of a Fed rate cut in March.

The Index

The dollar index fell 0.3% today to 104.02, the lowest since November 6, with a session-high at 104.39.

The index lost 1.2% on Wednesday, the third loss in a row, and the largest since January 20 following disappointing US private sector data.

Positive Sentiment 

The markets are awash with positive sentiment after German coalition parties announced plans to set up an infrastructure fund valued at 500 billion euros and change borrowing rules to boost military spending and growth.

Otherwise, the White House announced exemptions to some automakers from the 25% tariffs on Canada and Mexico for a month.

US Rates

New York Fed President John Williams said the US tariffs will likely push inflation higher, but he believes current interest rate policies are suitable and don’t require changes.

According to the Fedwatch tool, the odds of a 0.25% Fed interest rate cut in March stood at just 5%.

US Labor data

Now investors await important US labor data this week, with unemployment claims expected down to 234 thousand last week from 242 thousand in the previous reading.

Gold prices fell in European trade on Thursday for the first time in four days, moving away from a week high under pressure from higher US 10-year treasury yields. 

Now markets await important US labor data, which could provide crucial pricing to the odds of a Fed rate cut in March.

Prices

Gold prices fell 0.7% to $2899 an ounce, with a session-high at $2926.

On Wednesday, gold prices rose 0.1%, marking the third profit in a row and hitting a week high at $2929 as the dollar dropped.

US Yields

US 10-year treasury yields rose 1.1% on Thursday on track for the third profit in a row, hitting a week high at 4.326%, in turn boosting the dollar.

It comes as investors assess the impact of US tariffs on Canada, Mexico, and China in regards to inflation in the US.

According to the Fedwatch tool, the odds of a 0.25% Fed interest rate cut in March stood at just 5%.

SPDR

Gold holdings at the SPDR Gold Trust fell 1.44 tons on Wednesday to a total of 900.36 tons, the lowest since February 20.

The euro rose in European trade against a basket of major rivals, expanding gains for the fourth straight session against the dollar and hitting a four-month high, and surpassing the $1.08 barrier for the first time since November. 

The just-announced massive German spending plan accelerated inflation forecasts once more, which might prompt the European Central Bank to tighten its policies once more to control such risks. 

Now global markets await the policy decisions following the ECB’s policy meeting later today, expected to announce the fifth interest rate cut in a row.

The Price

The EUR/USD rose 0.3% to $1.0820, the highest since November 7, with a session-low at $1.0784.

The pair closed up 1.5% on Wednesday, the third profit in a row, and the largest since November 2023.

Massive German Spending Plan 

Germany’s coalition parties agreed to form an infrastructure fund with a budget of 500 billion euros, while changing borrowing rules to bolster military spending and economic growth.

Such massive plans only serve to underpin the euro as the debt limiters are lifted and growth accelerated.

ECB

The European Central Bank is wrapping up its monetary policy meeting today to decide on rates, with most analysts expecting a 25 basis points cut to 2.65%.

Now markets await more clues on the future path of monetary policies by the ECB this year.

Interest Rate Gap

The current eurozone-US interest rate gap stands at 160 basis points in favor of the US, and will likely expand to 185 basis points today, undermining the euro.