Stocks Edge Higher Despite Looming Inflation, Bitcoin Firm at $65K
*OspreyFX would like to state that traders should research extensively before following any information given hereby. Any assumptions made in this article are provided solely for entertainment purposes and not for traders to guide or alter their positions. Please read our Terms & Conditions and Risk Disclosure for more information.
- Wall Street stocks finished mostly higher on Thursday with futures in the green early Friday
- Bitcoin price trades firmly near $65,000, on track to finish the week in the green
What’s on Focus in the Markets?
Stocks on Wall Street advanced on Thursday, a day after October’s inflation report showed the economy is running hot. Still, investors decided to increase their risky bets, resulting in a push higher for the S&P500 and the Nasdaq Composite.
Both major indexes staged a modest comeback after a wobbly performance earlier in the week. On the flip side, the Dow Jones Industrial Average remained pressured for another day. The 30-stock blue-chip index declined about half a percent. In contrast, the S&P500 and the tech-heavy Nasdaq Composite gained 0.06% and 0.52%, respectively.
Mounting inflation concerns have once again threatened to derail economic stability. That said, market participants have been for months shrugging off reports saying consumer prices are consistently above 5%. Inflation for October, however, arrived at a 31-year high of 6.2% on an annualized basis.
What’s the Latest News on Bitcoin?
With this in mind, the original cryptocurrency, bitcoin, rallied right after the report was released Wednesday.
Presently, the price of the leading digital asset hovers near the $65,000-mark. In other words, about 6% from its record high of $69,000 set Wednesday.
Nevertheless, traders in the cryptocurrency market remain confident the upside swing still has enough momentum. To this end, projections for the price of bitcoin are positive as the year is coming to an end. Some analysts predict the token’s price to reach a new record high even next week.
JPMorgan puts the bitcoin price above $73,000 by year-end. Furthermore, strategists at the investment bank said bitcoin could top $146,000 in the long term.
In the meantime, the bitcoin community is gearing up for a major event this weekend. In detail, an upgrade called Taproot will be rolled out in the next couple of days. It promises better privacy and efficiency as well as cheaper transactions.
Since Taproot is the first major upgrade in over four years, higher-than-usual volatility could be expected this weekend.
What’s the Price of Gold?
The price of gold is hovering at a six-month high near $1,860 per troy ounce. Earlier this week, the precious metal spiked to a peak of $1,869, a level that was last seen in June 2021. Moreover, gold has been in a solid uptrend for six consecutive sessions. During that time, the asset has gained 5% as traders have flocked to it in efforts to find a hedge against inflation.
What’s New Around the Markets?
In the forex markets, the US dollar has advanced against most of its major peers. The EUR/USD, for example, slipped to a 16-month low under 1.1450. The GBP/USD also declined significantly, dropping to a 10-month low near 1.3350.
The recent strength of the greenback could present trading opportunities for those who have been waiting to enter the forex market.
Subscribe to our newsletter to receive our weekly updates + more straight to your inbox!