Bitcoin Hits New High Amid U.S. Shutdown and Rate Cut Anticipation
Bitcoin and other cryptocurrencies have surged in value amidst the ongoing U.S. government shutdown and anticipation of an interest rate cut by the Federal Reserve. Bitcoin hit a new all-time high of over $126,000, while stocks of publicly traded mining companies have also seen significant gains.
The rally in cryptocurrurrencies has been fueled by increased investment from U.S. investors, with a record $3.55 billion directed into Bitcoin ETFs last week. Bitcoin mining companies have seen their stock prices rise faster than Bitcoin's price. HIVE Digital led the pack with a 25% jump, while MARA, CleanSpark, and Riot Platforms each rose by over 9% and 11% respectively.
Google has also entered the scene, backing a deal between AI compute company Fluidstack and Bitcoin miner Cipher. This gives Google the right to buy a 5.4% stake in Cipher. The CEOs and founders of Bitcoin mining companies mentioned include Paolo Ardoino (CEO of Tether), Elizabeth Stark (CEO of Lightning Labs), and Adam Back (CEO of Blockstream).
Bitcoin's recent surge to over $126,000 has led to a rally in other cryptocurrencies and a rise in the stock prices of mining companies. Investors are increasingly viewing miners as owners of scarce infrastructure, making them more valuable when crypto markets are hot. As the U.S. government shutdown continues and the Federal Reserve considers an interest rate cut, the cryptocurrency market remains volatile but promising.
Read also:
- Amazon Halts Drone Deliveries After Arizona Crashes
- US Energy Transition: Coal Plants Struggle, States Push Renewables
- Musk threatens Apple with litigation amidst increasing conflict surrounding Altman's OpenAI endeavor
- U.S. Army Europe & Africa Bolsters Regional Security with Enhanced Partnerships & Deterrence
