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Bitcoin hits $11,000 as boom continues

Market Roundup with Oil and Bitcoin

Europe markets close mixed after ECB review

European markets closed mixed on Wednesday as talks on Brexit divorce bill continue and European Central Bank said growth and reforms are helping debt sustainability in its biannual financial stability review. Earlier in the day, it was reported that German inflation rate is expected to come in at 1.8%.

The DAX ended flat with gains of 0.02%. Volkswagen was the best trading stock as it increased 3.39%, while Infineon Tech fell 4.54%. The CAC 40 finished with a rise of 0.14%. Carrefour rose 3.02% after the company delayed the announcement its transformation plan until January. The FTSE 100 closed 0.90% in the red, with the mining industry leading the index lower.

Oil trades lower

Crude prices traded in the red on Wednesday after a report from private data showed a rise in the US stockpiles of 1.8 million barrels for last week. Meanwhile, investors were anticipating the upcoming OPEC meeting set for Thursday where major oil producers are set to discuss compliance with the output cut deal and its further extension.

Length of the extension period remains the main focus for market watchers while some are becoming increasingly worried regarding Russia's willingness to prolong the agreement that assumes a production cap of up to 1.8 million barrels per day. In the meantime, investment incentives were also lower ahead of the Energy Information Administration crude oil stocks report due for release later in the day.

Bitcoin hits $11,000 as boom continues

The most widespread digital currency hit a new all-time high of $11,000 on Wednesday after Federal Reserve New York President William Dudley said the US central bank is thinking of creating its own digital currency. Dudley noted that bitcoin isn't a stable store of value, adding that the cryptocurrency cannot rival the dollar since it’s "it's really more of a speculative activity."

Earlier today, bitcoin smashed an important psychological threshold of $10,000. According to some analysts, growing public awareness of bitcoin is the main factor that is driving the price higher. The cryptocurrency's market capitalization remains under $200 billion, indicating that bitcoin may continue to grow further.

 

 

Disclaimer:

This article was issued by Rodrick Duca, Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.