- Bitcoin reaches the all-time high
- Geopolitical situation affects some, but not all markets
- Bitcoin has been getting strength recently
Bitcoin reaches the all-time high
Major equity markets were flat and the dollar was volatile on Thursday as traders assessed the escalation of tensions in the Russia-Ukraine war. Bitcoin continued to rise, reaching a record high of more than USD 98 000.
Oil prices also rose "as geopolitical tensions weighed on concerns about rising US crude oil inventories", noted Matt Britzman, senior equity analyst at Hargreaves Lansdown.
"Geopolitical fears have also pushed up the price of gold in recent sessions... Investors are looking for safety as tensions between Russia and Ukraine escalate," he added.
The conflict is escalating daily: Kyiv accused Russia on Thursday of firing an intercontinental ballistic missile at Ukraine for the first time, only without a nuclear warhead.
Geopolitical situation affects some, but not all markets
Asian and European stock markets moved in different directions ahead of the Wall Street open, as US chip giant Nvidia's news of record profits late on Wednesday topped forecasts but fell short of investor expectations.
"Nvidia, the powerhouse of artificial intelligence, has seen its market value jump 200% in the past year and made itself the world's richest company, but its shares fell on Thursday.
"The market's negative reaction to Nvidia's results suggests that investors are now focusing on the details rather than the big picture," said Dan Coatsworth, investment analyst at AJ Bell.
"It's a natural evolution because the more closely people follow a company, the more they learn about it and the more detail they want," he added.
Bitcoin has been getting strength recently
Elsewhere on the corporate front, there was also news: shares in Indian conglomerate Adani Group plunged after US prosecutors accused its owner, industrialist Gautam Adani, of handing out more than $250 million worth of bribes to sign major contracts.
The value of Adani Enterprises, the main company, plunged by almost 20%, while several subsidiaries, ranging from the coal business to the media, lost between 10% and 20%.
Bitcoin, which has been gaining strength since Donald Trump's victory in the presidential election in early November, is close to the $100,000 mark.
"The bitcoin boom shows no signs of slowing down, and the king of cryptocurrencies is firmly approaching the six-figure mark," added analyst Britzman.
According to him, Trump's "return to the White House fuels hopes for a more cryptocurrency-friendly federal stance".
Based on ELTA reports
