Bitcoin hits record high
TOKYO: Bitcoin hit a record high on Thursday during early Asian trading, surpassing $124,000, driven by favorable US legislation and a rise in US equities. The cryptocurrency rose above its previous July record, briefly exceeding $124,500 before retreating. US stocks ended higher Wednesday, with the S&P 500 index and the tech-heavy Nasdaq reaching new heights this week, contributing to the cryptocurrency's rise. Bitcoin's value has recently soared, fuelled by US regulatory changes under US President Donald Trump, a strong backer of the crypto sector.
Its price has also been boosted by large holders of cryptocurrency, referred to as 'whales'. 'The crypto market is enjoying a period of highly favorable fundamentals,' said Samer Hasn, senior market analyst at XS.com. 'President Donald Trump has moved to end restrictions that previously prevented banks from doing business with companies flagged for reputational risk concerns, a category in which crypto firms were often unfairly placed,' he added.
Trump may also be inclined to 'accelerate the integration of cryptocurrencies into the national financial system and lift additional restrictions, given his and his family's growing involvement in the sector', Hasn said. Trump's media group and Tesla, the electric carmaker owned by tech billionaire Elon Musk, are among an increasing number of companies buying huge amounts of bitcoin.
NEW YORK: A general view of the New York Stock Exchange during morning trading in New York City. – AFP
Stocks diverge
Meanwhile, European and Asian stock markets diverged Thursday and bitcoin hit a record high on the eve of landmark talks between US President Donald Trump and Russian counterpart Vladimir Putin on potentially ending the Ukraine war. Most European equity indices climbed after major Asian peers ended lower. Bitcoin hit a new peak at $124,514.59 in Asian trading, before cooling to around $121,500. The world's biggest cryptocurrency is benefitting from expectations that the Federal Reserve will cut US interest rates before 2026, which is weighing on the dollar.
Bitcoin is also winning investor support thanks to strong backing for the cryptocurrency sector from Trump. 'An accommodative stance from the Trump administration combined with expectations of a September Fed rate cut have helped to propel gains for bitcoin,' Victoria Scholar, head of investment at Interactive Investor, noted Thursday. The pound won some support thanks to expectations that the Bank of England may not follow up its interest-rate cut last week with another reduction this year.
The currency's rise weighed on London's FTSE 100 index of top companies, some of which earn in dollars. Britain's economy performed better than expected in the second quarter as it weathered the impact of US tariffs and a higher UK business tax, official data showed Thursday.
On Friday, Putin and Trump are to discuss ways to settle the Ukraine conflict during a summit in Alaska, the Kremlin said. The meeting will be the first between sitting US and Russian presidents since 2021, and comes as Trump seeks to broker an end to Russia's nearly three-and-a-half year offensive. 'It is probably obvious to everyone that the central topic will be the resolution of the Ukraine crisis,' Kremlin aide Yuri Ushakov told reporters. Oil prices edged higher Thursday, with market watchers waiting to see if the meeting's outcome affects trading of crude, of which Russia is a major supplier. - AFP
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Bitcoin hits record high
Stocks diverge as bitcoin surpasses $124,000 TOKYO: Bitcoin hit a record high on Thursday during early Asian trading, surpassing $124,000, driven by favorable US legislation and a rise in US equities. The cryptocurrency rose above its previous July record, briefly exceeding $124,500 before retreating. US stocks ended higher Wednesday, with the S&P 500 index and the tech-heavy Nasdaq reaching new heights this week, contributing to the cryptocurrency's rise. Bitcoin's value has recently soared, fuelled by US regulatory changes under US President Donald Trump, a strong backer of the crypto sector. Its price has also been boosted by large holders of cryptocurrency, referred to as 'whales'. 'The crypto market is enjoying a period of highly favorable fundamentals,' said Samer Hasn, senior market analyst at 'President Donald Trump has moved to end restrictions that previously prevented banks from doing business with companies flagged for reputational risk concerns, a category in which crypto firms were often unfairly placed,' he added. Trump may also be inclined to 'accelerate the integration of cryptocurrencies into the national financial system and lift additional restrictions, given his and his family's growing involvement in the sector', Hasn said. Trump's media group and Tesla, the electric carmaker owned by tech billionaire Elon Musk, are among an increasing number of companies buying huge amounts of bitcoin. NEW YORK: A general view of the New York Stock Exchange during morning trading in New York City. – AFP Stocks diverge Meanwhile, European and Asian stock markets diverged Thursday and bitcoin hit a record high on the eve of landmark talks between US President Donald Trump and Russian counterpart Vladimir Putin on potentially ending the Ukraine war. Most European equity indices climbed after major Asian peers ended lower. Bitcoin hit a new peak at $124,514.59 in Asian trading, before cooling to around $121,500. The world's biggest cryptocurrency is benefitting from expectations that the Federal Reserve will cut US interest rates before 2026, which is weighing on the dollar. Bitcoin is also winning investor support thanks to strong backing for the cryptocurrency sector from Trump. 'An accommodative stance from the Trump administration combined with expectations of a September Fed rate cut have helped to propel gains for bitcoin,' Victoria Scholar, head of investment at Interactive Investor, noted Thursday. The pound won some support thanks to expectations that the Bank of England may not follow up its interest-rate cut last week with another reduction this year. The currency's rise weighed on London's FTSE 100 index of top companies, some of which earn in dollars. Britain's economy performed better than expected in the second quarter as it weathered the impact of US tariffs and a higher UK business tax, official data showed Thursday. On Friday, Putin and Trump are to discuss ways to settle the Ukraine conflict during a summit in Alaska, the Kremlin said. The meeting will be the first between sitting US and Russian presidents since 2021, and comes as Trump seeks to broker an end to Russia's nearly three-and-a-half year offensive. 'It is probably obvious to everyone that the central topic will be the resolution of the Ukraine crisis,' Kremlin aide Yuri Ushakov told reporters. Oil prices edged higher Thursday, with market watchers waiting to see if the meeting's outcome affects trading of crude, of which Russia is a major supplier. - AFP
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