The most famous cryptocurrency, Bitcoin, reached a new high this morning, exceeding $124,000 (2.59 million Czech korunas) for the first time. According to AFP, favorable US legislation, interest from institutional investors, and rising US stocks are contributing to the growth of this cryptocurrency.
Strengthening
Bitcoin surpassed its previous record from mid-July, which was $123,205, briefly exceeding $124,500. The cryptocurrency subsequently wiped out its gains. At around 8:30 a.m. CEST, it was trading at $121,590.50. Since the beginning of the year, Bitcoin has strengthened by more than 30 percent. The second-largest cryptocurrency, Ether, linked to the Ethereum blockchain, has added 43 percent since the beginning of the year and was trading at nearly 4,770 Ether before 9:00 a.m. CEST.
According to the DPA agency, traders attributed the rise in the exchange rate to growing demand from institutional investors. According to Bloomberg, the cryptocurrency is supported by the favorable legislative environment created by US President Donald Trump. The White House chief signed an executive order this year to establish a strategic reserve of cryptocurrencies. Trump had already promised during his election campaign to support domestic bitcoin mining so that the United States would become a global center for this technology.
American stock exchange
Cryptocurrencies are also benefiting from the generally favorable mood on the markets with prices on US stock exchanges, according to DPA. Inflation data in the United States has reinforced expectations that the US Federal Reserve (Fed) will cut key interest rates at its next monetary policy meeting, according to Reuters.
According to LSEG data, markets now see a 98% probability of a rate cut at the Fed’s next monetary policy meeting, which is scheduled for September. “The decisive factor is confidence in interest rate cuts in capital markets across the Atlantic,” said analyst Timo Emden of Emden Research.
On Wednesday, US stocks continued to rise for the second day in a row, while the dollar weakened for the second day in a row. The broader S&P 500 index rose 0.32 percent to 6,466.58 points, and the Nasdaq Composite technology market index rose 0.14 percent to 21,713.14 points. Both indices thus moved to new highs for the second session in a row.
Source: Czech Press Office
