Bitcoin hits $50,000, Wall Street gains fresh heights

New York/London: Bitcoin crossed $50,000 for the first time on Tuesday as Wall Street set fresh records on continued confidence of covid-19 recovery.

Bitcoin hit a high of $50,547.70 as a growing number of institutions backed the world’s most popular virtual currency.

The price of the cryptocurrency has soared 70% since the start of the year.

Wall Street returned from a three-day holiday eager to catch up with earlier rallies in Europe and Asia as major indices opened in record territory on Tuesday.

The Dow passed 31,500 points for the first time, but as the morning wore on it struggled to hold on to its gains.

The broader S&P 500 and tech-heavy Nasdaq Composite both slid into the red.

While Biden’s spending package is expected to pass through the Democrat-controlled Congress, analysts warn it may not be as big as the $1.9 trillion he proposed.

Moreover, vaccinations could soon be crimped by supply constraints.

Equities have been on a breakout since Biden’s election on hopes for greater US stimulus as well as progress on the vaccination front.

Meanwhile, oil held close to 13-month highs on hopes of keen demand amid severe cold weather conditions in Texas.

European equities mostly eased after soaring the previous day.

London finished 0.1% lower, Frankfurt gave up 0.3% and Paris ended flat.

Sterling soared to $1.3952, the highest in three years, before pulling back. The euro sank to 87.06 pence, the lowest since May.

A strong pound tends to dent London share prices as it weighs on profits of dollar-earning multinationals.

Asia’s leading stock markets closed with strong gains and the dollar declined against the euro and yen.

In London, the mining sector was also in sharp focus on Tuesday.

Shares in Glencore jumped as much as 4.1% after the Swiss giant restored its shareholder dividend despite losses.

Anglo-Australian miner BHP jumped 2.3% to 2,279 pence on news of soaring profit and a bumper dividend, before pulling back.

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