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BTC hit a fresh record of USD 105k yesterday after US legislation was introduced to set up a strategic reserve for the digital currency, which would allow the state to accept taxes, fees and donations in bitcoin that would be held for a minimum of five years, Reuters and CNBC report. The so-called “Bitcoin Act” would also see the US government purchase 1 mn BTC over five years.
In context: The news comes following a rally that saw BTC climb over 50%, spurred on by Donald Trump’s election in the US, and saw it hit the USD 100k milestone for the first time this month.
It’s not the first time we’ve heard of this: In July 2024, Trump initially touted the idea of a strategic national bitcoin reserve at the Bitcoin 2024 conference, predicting that bitcoin could surpass gold’s market capitalization of USD 16 tn.
The US is not alone: The possibility of a US bitcoin reserve has gained traction following similar moves by Russia, where lawmakers are advocating for a national BTC reserve as an alternative to foreign currency reserves. Analysts predict that BTC’s price could reach as high as USD 800k by the end of next year, resulting in a market capitalization of approximately USD 15 tn, Forbes reports.
MARKETS THIS MORNING-
Asian markets are mixed after South Korea’s president was impeached over the weekend, and as investors await key interest rate decisions from the Bank of Japan and the People’s Bank of China. South Korea’s Kospi is hovering near the flatline, while Kosdaq is up nearly 0.7%. Japan’s Nikkei is also up, while China’s CSI 300 and Hong Kong’s Hang Seng are both down.
Over on Wall Street, futures are calm following a losing week for the S&P 500 and the Nasdaq.
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ADX |
9,265 |
-0.1% (YTD: -3.3%) |
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DFM |
4,830 |
+0.4% (YTD: +19.0%) |
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Nasdaq Dubai UAE20 |
3,893 |
0.0% (YTD: +1.3%) |
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USD : AED CBUAE |
Buy 3.67 |
Sell 3.67 |
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EIBOR |
4.5% o/n |
4.3% 1 yr |
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TASI |
12,060 |
-0.3% (YTD: +1.1%) |
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EGX30 |
30,776 |
-0.1% (YTD: +23.6%) |
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S&P 500 |
6,051 |
0.0% (YTD: +26.9%) |
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FTSE 100 |
8,300 |
-0.1% (YTD: +7.3%) |
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Euro Stoxx 50 |
4,968 |
+0.1% (YTD: +9.9%) |
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Brent crude |
USD 74.49 |
+1.5% |
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Natural gas (Nymex) |
USD 3.28 |
-5.1% |
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Gold |
USD 2,676 |
-1.2% |
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BTC |
USD 102,645 |
+1.6% (YTD: +143.1%) |
THE CLOSING BELL-
The ADX fell 0.1% on Friday on turnover of AED 793.5 mn. The index is down 3.3% YTD.
In the green: Abu Dhabi National Takaful (+15.0%), Union Ins. Company (+11.1%) and United Arab Bank (+4.5%).
In the red: Commercial Bank International (-9.9%), E7 Group (-4.6%) and National Bank of Umm Al Qaiwain (-2.2%).
Over on the DFM, the index closed up 0.4% on turnover of AED 405.9 mn. Meanwhile, Nasdaq Dubai stayed flat.
CORPORATE ACTIONS-
Takaful Emarat Ins. completed its capital increase of AED 185 mn through a rights issue offered to existing investors, raising the company’s total capital to AED 210.7 mn, according to a press release (pdf).
