Bitcoin Skyrockets Through All-time Highs As It Tops $22,000

Bitcoin (BITCOMP) has broken records by soaring through its previous all-time high, up more than 15% in the past 24 hours.

At the time of writing, bitcoin is trading around $22,838 – well above any previous high achieved by the cryptoasset. In its wake other peers such as ethereum are also soaring. ETH has hit a 2020 high of $652.76, up nearly 10% in the past 24 hours.

Bitcoin is now the 13th-largest asset by market cap according to AssetDash and has a market cap of around $403 billion thanks to the latest price surge, making it nearly as valuable as US retail giant Walmart (WMT). 

Fed commits to open-ended stimulus

On Wednesday, Federal Reserve officials confirmed that the central bank will continue to buy up at least $120bn of government and mortgage bonds monthly until the US economy makes “substantial” progress. Bond buying by the Fed has an indirect influence on stock prices, as it pushes up bond prices and suppresses bond yields, which drives investors towards equities. The vast majority of Fed officials still currently expect that interest rates will be kept at their near-zero level for three years. “It’s not going to be easy to have inflation move up,” Federal Reserve chairman Jerome Powell said.

In corporate news, Google (GOOGL) and Facebook (FB) found themselves in the firing line once again, as a group of 10 states sued Google on Wednesday. The suit accuses the search engine giant of roping in Facebook to help it rig online ad auctions to maintain a monopoly.

Consumer stocks gain despite retail sales data

US stock indices were mixed on Wednesday after the Federal Reserve news, with the S&P 500 up by 0.2%, while the Dow Jones Industrial Average fell 0.2%. The Nasdaq Composite enjoyed a more positive day, adding 0.5%, helped higher by names including Biomarin Pharmaceutical (BMRN), PayPal (PYPL) and eBay (EBAY), which gained 5%, 3.9% and 3% respectively. In the S&P 500, DISH Network (DISH) was the day’s biggest loser, tumbling by more than 11% after announcing the issuance of $2bn in convertible bonds.

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