MILESTONE REACHED

Bitcoin has reached a significant milestone as it has finally exceeded the $100,000 mark for the first time. This surge was triggered by President-elect Donald Trump’s announcement of nominating a new SEC chair, Paul Atkins, who is seen as supportive of the cryptocurrency industry. In addition, the rise in bitcoin’s value is also attributed to institutional investors recognizing the potential and value of bitcoin, which has led to increased demand and a boost in its price. Moreover, it is worth noting that the overall sentiment is optimistic, and there are hopes for more crypto-friendly initiatives in the future, such as establishing a national strategic bitcoin reserve and introducing tax-free crypto transactions.

MARKET FRENZY

Following the remarkable rise of Bitcoin, the market for cryptocurrency-related stocks has been heating up. Companies like MicroStrategy, Riot Platforms, and Mara Holdings are reporting significant gains in premarket trading. MicroStrategy, closely linked to Bitcoin due to its active acquisition of the digital currency, has seen its stock value skyrocket. Additionally, Riot Platforms and Mara Holdings, both specializing in Bitcoin mining and digital infrastructure, have also experienced positive upticks. Furthermore, online brokerages Robinhood and Coinbase Global, which facilitate crypto trading, have also experienced a rise in their respective stocks.

COOLING DOWN

In regards to the latest data on unemployment benefits in the United States, there was a moderate increase in new applications last week, indicating a slight cooling in the labor market. The Labor Department reported that initial claims rose to 224,000, slightly higher than the expected 215,000 claims. Despite this increase, the data suggests steady job growth and a rebound in nonfarm payrolls for November. However, reports from the Federal Reserve have highlighted sluggish hiring activity and minimal job turnover in recent weeks, leading to concerns about future job growth. The rise in continuing claims for unemployment benefits also poses a potential risk of an increase in the unemployment rate. As a response to these uncertainties, including threats of tariffs and proposed tax cuts, the Federal Reserve is expected to implement further interest rate cuts to address the economic challenges ahead.

PRODUCTION INCREASES STALLED

Oil prices have increased due to the decision of OPEC+ members to postpone the planned rise in crude production. U.S. crude oil prices went up by 50 cents to reach $69.04 per barrel, while Brent crude futures saw a rise of 46 cents to $72.77 per barrel. This increase came after an agreement by eight OPEC+ members, led by Saudi Arabia and Russia, to maintain voluntary production cuts of 2.2 million barrels per day until March 2025. These cuts will then be gradually reduced monthly until September 2026, with an additional set of cuts remaining in place until December 2026. However, challenges exist for the group in trying to increase oil production to meet market demand, with oversupply concerns raised by the International Energy Agency predicting an excess of 1 million barrels per day in global supply next year, even with the current cuts in place.

STANDING STRONG

The British pound has been on the rise for the last three days, and it has rebounded from the low point it reached in November. After hitting $1.2475 on November 22, the pound has climbed to $1.2721. Meanwhile, the euro remained steady at 82.78 pence against the pound. The pound’s recent fluctuations have largely been influenced by the U.S. dollar, dropping from a high point in October due to strong U.S. job market performance and further decreasing after Donald Trump’s re-election. However, the pound stabilized over the past week as the Bank of England data indicated a slight cooling in British employers’ expectations for wage growth. Moreover, it is worth remarking that the pound has been less vulnerable to Trump’s tariffs due to the UK’s service-oriented economy, which has resulted in a trade surplus with the U.S. This has allowed the pound to remain resilient amidst currency fluctuations in other economies.