Rolling coverage of the latest economic and financial news
- Latest: Bitcoin hits $50,000 for first time
- Global markets continue strong run
- FTSE 100 at one-month peak
- Global markets on track for best run since 2003
- Eurozone shrank slightly less than feared in Q4
We also have encouraging economic news — manufacturers in the state of New York report that conditions have improved this month.
The New York Fed’s Empire State Manufacturing Survey has risen to 12.1 in February from 3.5 in January, higher than expected.
The Empire State Manufacturing Index rebounded to 12.1 in February from 3.5 in January, beating Econoday’s consensus for 5.7, with forecasts ranging from 4.2 to 10.0. pic.twitter.com/8seEOsyesj
@NYFedResearch Empire State #Manufacturing index +8.6pts to 12.1 in Feb (high since July)
– New orders⬆️
– Shipments⬆️
– Delivery times⬆️
– Inventories⬆️
– Employment⬆️
– Input prices⬆️ fastest pace in a decade
Firms optimistic abt next 6mo & capital spending plans
at yr high pic.twitter.com/aEAQB5Y5g9
One theory behind bitcoin’s rally is that cryptocurrencies can act as ‘digital gold’ – a store of value, rather than a medium of exchange (where bitcoin’s volatility is problematic).
As there around 18m bitcoin in existence, with a maximum of 21m coded into the system, it’s possible to come up with price targets based on bitcoin supplanting bullion.
“If that narrative [of digital gold] comes to fruition, then the growth potential is off the charts as $50,000 per bitcoin equates to a market cap of roughly $931 billion, which is almost 9% of gold.
“If BTC meets gold’s market cap, then that would be at least $500,000 per bitcoin.”
BREAKING: #bitcoin crosses above $50,000 for the first time. @JoeSquawk and @andrewrsorkin discuss what the #btc milestone means. https://t.co/9MMA8ANxJQ pic.twitter.com/CCCgYxs9lE
