Source: Yahoo Finance

Bitcoin Reaches New Heights

This week’s Thursday, 5th December 2024, was a historic day for cryptocurrency enthusiasts. Bitcoin, the world’s largest cryptocurrency, rose by 5% in a single day, breaking through the psychological barrier of $100,000. The new all-time high was recorded at $103,679.00 after which the cryptocurrency retracted.* The surge was fueled by U.S. President Joe Biden's announcement of Paul Atkins' nomination to head the Securities and Exchange Commission.

Atkins is known for his pro-crypto stance and has been attempting to create best practices for cryptocurrency trading via his project, Token Alliance. His nomination has already raised positive expectations for an exceptionally favorable regulatory framework in the United States, resulting in a rally among investors.

Bitcoin's historic milestone represents more than just a technical achievement. It can also be viewed as a way of cryptocurrencies slipping into the portfolios of more and more investors. Cryptocurrencies are increasingly being seen as a hedge against traditional assets, especially during periods of geopolitical tension combined with rallies in technological stocks.

Political Uncertainty in South Korea

While cryptocurrencies thrive, South Korea is mired in political turmoil. President Yoon Suk Yeol shocked the nation on Tuesday by declaring martial law, in a risky move that many analysts simply do not understand.

Already unpopular Yoon justified the move by citing an “anti-state conspiracy” and threats from North Korea but provided no concrete evidence. South Korea’s opposition-led parliament swiftly acted to annul the martial law order with the support of protesting crowds, forcing Yoon to backtrack just six hours after it was enacted.

Now, the president faces potential impeachment, with a vote expected this week. To remove Yoon from office, a two-thirds majority in parliament is required, which would necessitate support from members of his own conservative People Power Party. This political instability could undermine investor confidence both domestically and internationally. However, trading on the Korean exchange remained unaffected with limited moves of the assets.

Markets React Cautiously

The political crisis in South Korea and the Bitcoin surge are just two of several factors affecting Asian markets. Global stock indices have reached new highs this week, lifted by optimistic remarks from Federal Reserve Chair Jerome Powell. On Thursday, Japan’s Nikkei index rose by 0.3%, Korea’s Kospi declined by 0.9% and China’s Shanghai index edged higher by 0.12%. The MSCI global stock index hit a fresh record, signaling overall optimistic expectations.*

* Past performance is no guarantee of future results.