Bitcoin moves towards record highs
Bitcoin rose on Thursday for a second day towards record highs, as it holds firmly above $100,000 amid improving risk appetite and receding concerns about China’s DeepSeek AI model.
MicroStrategy continues to expand its bitcoin holdings, bolstering the investment status of the crypto asset, and market confidence in it.
The Price
Bitcoin rose 1.75% at Bitstamp today to $105,569, with a session-low at $103,313.
On Wednesday, bitcoin rose 2.5%, the first profit in five days away from a two-week trough at $97,750.
Bitcoin hit a record high on January 20 at $109,356 before entering a correction.
Crypto Market Value
The market value of cryptocurrencies rose by $60 billion on Thursday to a total of $3.716 trillion.
MicroStrategy
Through the X platform, MicroStrategy’s CEO Micheal Saylor announced yet another round of bitcoin purchases amounting to 101,107 units, bringing the company’s total holdings to a record high.
The purchase occurred between January 22 and 27 at a total value of $1.07 billion, paying on average $105,596 per unit, with the company now holding 471,107 bitcoins over all with the average price of $64,580.
The Fed
The Federal Reserve held interest rates unchanged this week at 4.5% as expected by most analysts.
It pointed to the steady economic growth and strong labor conditions, while unemployment held at low levels in recent months.
However, the Fed’s statement noted that US inflation remains at high levels, with the central bank still aiming at achieving the 2% inflation target in the long term.
The Fed will continue to reduce its holdings of treasury and financial bonds overall, and stands ready to amend monetary policies when needed.
Fed Chair Jerome Powell said there’s no urgent need to cut interest rates currently, asserting the importance of balance in monetary policies, and cautioning against rapid loosening of monetary policies, which could hinder the fight against inflation.
US Rates
According to the Fedwatch tool, the odds of a Fed 0.25% rate cut in March fell from 30% to 17%.
Now markets await crucial US GDP growth data for the fourth quarter of last year, in addition to unemployment claims data.
US dollar maintains gains before GDP data
The US dollar rose in European trade on Thursday and maintained the gains for the third straight session, about to hit a week high following the Fed’s first policy meeting this year.
The Fed’s remarks reduced the odds of a March interest rate cut, as investors now await important US data later today on GDP growth and unemployment claims.
The Index
The dollar index rose 0.15% to 108.09, with a session-low at 107.81.
On Wednesday, the index rose 0.1%, hitting a week high at 108.30.
The Fed
The Federal Reserve held interest rates unchanged this week at 4.5% as expected by most analysts.
It pointed to the steady economic growth and strong labor conditions, while unemployment held at low levels in recent months.
However, the Fed’s statement noted that US inflation remains at high levels, with the central bank still aiming at achieving the 2% inflation target in the long term.
The Fed will continue to reduce its holdings of treasury and financial bonds overall, and stands ready to amend monetary policies when needed.
Powell
Fed Chair Jerome Powell said there’s no urgent need to cut interest rates currently, asserting the importance of balance in monetary policies, and cautioning against rapid loosening of monetary policies, which could hinder the fight against inflation.
Powell refused to comment on US President Donald Trump’s pressures on cutting interest rates, adding he hasn’t communicated with Trump yet.
US Rates
According to the Fedwatch tool, the odds of a Fed 0.25% rate cut in March fell from 30% to 17%.
Now markets await crucial US GDP growth data for the fourth quarter of last year, in addition to unemployment claims data.
US GDP growth is expected to clock in at 2.7% in the fourth quarter, down from 3.1% in the third.
