Bitcoin reached an all-time record high, buying above $109,000 for the first time, as investors’ risk appetites grew again and drove an overall rally in crypto markets.Â
On Wednesday, the leading digital currency traded to a record intraday high of $109,760 and was still trading above $108,000 at last check.
The rally is a market mood shift where risk appetite leads, after uncertainty is instigated by economic volatility and trade wars. The Moody’s downgrade of U.S. sovereign credit ranks among them, leading the rally, which compelled investors into other assets like Bitcoin. Others perceive the cryptocurrency as an inflation hedge, and when confidence in fiat money like the dollar diminishes.
Institutional demand is also pushing Bitcoin into new territory. Nexo, the digital asset firm, said the bull cycle is now driven by increasingly dovish U.S. regulatory signals and expanding interest from traditional finance. Major banks, crypto’s long-time foes, are stepping back from their bluster. JPMorgan Chase, for example, said it would permit its customers to purchase Bitcoin, but the bank wouldn’t hold the virtual currency itself.
This shift is important proof of mass acceptance, especially considering JPMorgan CEO Jamie Dimon’s decade-long skepticism of cryptocurrency. While still cautious of Bitcoin usage for illicit purposes, Dimon sees it as he believes his customers have a right to hold it. The tone shift on the part of banks is helping to legitimize Bitcoin in the perception of global investors.
Boosting the momentum, the largest US crypto exchange, Coinbase, was recently added to the S&P 500 stock index, the first time such an occurrence has occurred in the industry. As the company is criticized following a recent hacking attack, the fact that a top stock index is affected reflects increased mainstream acceptance of crypto in mainstream markets.
The Bitcoin path has also been behind the tech stocks, with the Nasdaq 30 percent higher than in April. The digital money has risen more than 50 percent in the same time frame, mirroring its growing use as a risk asset when there is economic uncertainty.
Bulls are optimistic about the future of Bitcoin. According to its four-year halving pattern from history, there are predictions that the cryptocurrency will reach $150,000 by 2025. Meanwhile, Ether lags in the latest rally, declining 0.5 percent to $2,513.
Naira Gains Third Consecutive Day as Confidence Increases and Reserves Improve
The Nigerian currency maintained its three-consecutive-day appreciation with the naira appreciating N1,583 per dollar at the official foreign exchange market on Wednesday.
Narrow appreciation follows Tuesday’s N1,588.5 and Monday’s N1,597, reflecting incremental but steady improvement in local currency performance.
Naira data at the Central Bank of Nigeria show that it had fluctuated between N1,582.5 and N1,590 to a dollar on Wednesday at a mean rate of N1,584.25. The consistent appreciation is a sign of improved market mood, which was most probably a result of a combination of monetary policy interventions and more active investors.
The naira at the official exchange was N2,126.23 per pound and N1,795.07 per euro. But at the parallel market, nothing changed. The dollar stayed the same at N1,625 as yesterday, the pound was down slightly to N2,155 from N2,145, and the euro was around N1,820.
Among the strongest supports for the naira in recent times is Nigeria’s foreign reserve recovery. Reserves stood at $38.53 billion as of Tuesday, higher than the $38.50 billion recorded on Monday. This is after several months of uncertainty triggered by volatility in global oil prices, an increase in external debt, and foreign exchange pressure.
CBN Governor Olayemi Cardoso highlighted the positive trend in Tuesday’s Monetary Policy Committee presentation. He attributed gains on reserves and stability of the naira to policy reforms and better investor confidence. He revealed that Nigeria’s net external reserves, excluding illiquid assets, have increased exponentially from just over $3 billion to almost $23 billion, with a record increase in available actual foreign assets.
Earlier this year, foreign reserves touched a high of over $40 billion in January before declining to $38.31 billion towards the end of March. Volatility was also observed in April, with numbers dropping below $38 billion. But May changed the scenario, with the reserves going up gradually and pointing to recovery on the longer side.
The World Bank’s most recent Nigeria Development Update verifies the assumption that recent fiscal and monetary reforms are beginning to stabilize the macroeconomy. Such structural adjustment, complemented by accelerated revenue mobilization, is promising good days for Nigeria’s future finance.
