Before December came, Bitcoin was nearing the six-digit mark. Now, on December 5, Bitcoin finally spiked past $100,000 due to positive investor sentiment and expectations of favorable US regulatory changes. This had primarily been in the wake of US President-Elect Donald Trump nominating a crypto-friendly individual to head the SEC, which further increased its allure.
The recent rally has also been driven by the institutionalization of Bitcoin, spurred by exchange-traded funds that have been cleared this year. Bitcoin has gained this value after seeing a wave of institutional support this year.
Bitcoin's increase extended to global stocks as well. Reuters shared that US equities maintained the high as all three major stock indexes closed at another record level. Federal Reserve Chairman Jerome Powell's stated that the strength of the economy further boosted investor optimism, as many see that this current strong state of the economy will allow central bank to decrease interest rates more modestly going forward.
The bullish sentiment towards the economy helped push up stock markets across the world.
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However, the dollar weakened further against major currencies such as the euro and yen, hence the further advancement of the world equity markets. For now, investors are awaiting the US employment data, which will also signal the health of the US economy.
At the same time, commodity markets have mixed movements. While oil prices saw an increase before the highly-anticipated meeting, which is expected to extend production cuts to balance supply and demand globally, the prices have been stable for the past few weeks. There is hope for a continued production restrictions, but market participants will still closely monitor the outcome of the meeting. The price of gold remained steady, trading flat at $2,649 per, per Business Insider.
Overall, market sentiment remains cautiously optimistic. The equities of the world reached an all-time high, while Bitcoin made new highs. Political challenges in France and Germany may pose some risk. However, the excellent performance by the stock market and Bitcoin may have something to say regarding investor confidence in the world's economy.
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