Bitcoin organized an epic rally this week, highlighting actions and policy developments centered on the tax and the Federal Reserve. An impressive rise in crude oil has also made headlines, as investors continue to positively consider the speculation that OPEC plans to expand its production cuts until 2018.
BTC / USD Strikes $ 7,000, Then Blows After
Bitcoin released one of its most spectacular rallies this week on its way to new records. BTC / USD jumped to $ 7,000 and beyond, adding a staggering 24% over a five-day period. At the time of going to press, BTC / USD was trading at $ 7,213 for a market capitalization of $ 120 billion.
A multitude of forces have combined to give bitcoin a market capitalization that rivals some of the biggest companies on Wall Street. The main one among them is the prospect of greater institutional cash flow following the announcement that CME Group plans to launch BTC futures contracts. In doing so, CME joins its competitor CBOE by adopting digital currency.
The Bitcoin Rally did not generate any additional purchase interest for altcoins this week. Although the Altcoin market improved on Friday, titles like Ethereum, Ripple and Litecoin clashed throughout the week.
Inventories Return to the Territory of Registration
Wall Street recorded steady gains this week as all three major indexes closed at record highs. The Dow Jones Industrial Average rose 0.4% over the week to finish at 23,539.19. The large-cap S & P 500 Index posted a 0.2% gain over five days to close at 2,587.84. Meanwhile, the Nasdaq Composite Composite Composite Index rose nearly 1% to settle at 6,764.43 on Friday.
Technology stocks continued to rise after being the source of 75% of stock market returns in October.
Implied volatility has also fallen to its lowest level since the summer as investors maintained their portfolios heavily invested in the stock market. The Chicago Board Options Exchange (CBOE) volatility index plunged 8% Friday to close at 9.14. The so-called "fear index" is trading on a scale of 1-100, where 20 is the historical average.
Powell obtains the appointment of the Fed
On Thursday, US President Donald Trump named Jerome Powell head of the Federal Reserve after Janet Yellen's term expires in February. The movement ensures continuity in terms of monetary policy only without Yellen, a democrat who was breaking with the current administration.
"Today is an important step on the road to restoring economic opportunities for the American people," Trump said at a press conference Thursday.
"He is strong, he is engaged and he is smart, and if confirmed by the Senate, Jay will put his considerable talents and experience at the service of the independent central bank of our country," he said. Trump with reference to Powell.
Powell is currently Fed Governor and Voting Member of this year's Federal Open Market Committee. Speculation surrounding his appointment surpassed the Fed's policy meeting that lasted until Wednesday. As expected, policymakers kept interest rates on hold until December.
Crude Oil at the Highest of 2017 as the Rally Continues
Oil prices continued to climb this week, reaching their highest level of the year due to improved demand prospects and signs of a decline in oil supplies. point. West Texas Intermediate (WTI) for the December settlement added 3.2% for the week to close at $ 55.64 a barrel.
The Brent crude futures contract added 2.7% for the week to $ 62.07 a barrel.
Crude prices were boosted on Friday after drilling services provider Baker Hughes reported a further weekly decline in active platforms. The drillers operated 11 platforms less last week, mostly because of a loss in the number of active oil rigs. It was the biggest drop this year.
U.S. The job market is back on track
The US labor market had a positive month after two devastating hurricanes put a knife on official employment figures.
On Thursday, the Labor Department said that weekly jobless claims have fallen to the lowest level for over 44 years. Twenty-four hours later, the same department announced the creation of 261,000 jobs for the month of October. Although well below expectations of 310,000, forecasters have considered a sharp upward revision over the previous month. In fact, the economy created 18,000 jobs in a hurricane month. The original report indicated a decrease of 33,000 jobs.
Fewer layoffs and more hirings are positive signs of an economy that has moved up a gear in the last eight months. America under Trump has been more confident and much more optimistic about the future – at least when it is measured by certain economic indicators and the stock market. The president is still facing an abysmal note of approval, although this can be attributed to a keen partisanship on the part of US voters.
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