Bitcoin hits $1-T market cap
The digital unit zoomed to another record at around $56,000, meaning that the combined value of all bitcoin now stands above $1 trillion
NEW YORK, United States (AFP) — Bitcoin racked up another milestone as it surpassed $1 trillion in market capitalization as optimism over coronavirus vaccines and stimulus competed with inflation fears.
The digital unit zoomed to another record at around $56,000, meaning that the combined value of all bitcoin now stands above $1 trillion, according to data provider Coinmarketcap.com.
Oil prices sank meanwhile, as some companies began slowly restarting operations in the US producer state of Texas, where refineries have been hammered by a cold snap.
Meanwhile, data showed that the eurozone’s economy is being hit hard by a new wave of lockdowns but the damage will be less severe than last year’s virus-induced crash.
The closely watched Purchasing Managers’ Index (PMI) compiled by IHS Markit rose to 48.1 points in February from 47.8 points in January, closer to the 50-point level which would have indicated growth.
However, businesses also expressed confidence that vaccinations would allow economic activity to rebound in the coming months, IHS Markit added.
Risks weighed
Back in the United States, major indices finished near flat after a choppy week.
Appearing at a pharmaceutical plant in Michigan, US President Joe Biden again called for Congress to boldly boost the coronavirus-ravaged US economy and enact his $1.9 trillion rescue package.
In another propitious development for markets and the country, Pfizer and BioNTech said research showed their Covid-19 vaccine could be stored at standard freezer temperatures, potentially lowering the costs and logistical challenges of widespread inoculation against the deadly virus.
But a jump in yields on 10year US Treasury notes amid inflation worries “appears to be keeping gains in check,” said a market note from Charles Schwab.
Data showed that the eurozone’s economy is being hit hard by a new wave of lockdowns but the damage will be less severe than last year’s virus-induced crash.
Among those not concerned about inflation is IMF chief economist Gita Gopinath, estimating that with the full amount of stimulus, inflation “would reach around 2.25 percent in 2022, which is nothing to be concerned about,” she said in a blog post.