Bitcoin hovered around $105,000 on Wednesday, showcasing a strong rebound from the $100,000 support level observed the previous day. The cryptocurrency's rally underscores a positive market sentiment despite a lack of significant data releases. This optimism has made it challenging for the US Dollar to secure demand, as investors assess the broader economic landscape.
The improving risk mood has also bolstered the EUR/USD, which traded positively at approximately 1.0450. Meanwhile, the GBP/USD held steady within a narrow range near 1.2350. Investors are keenly monitoring comments from US President Donald Trump regarding trade policies, which continue to inject uncertainty into the markets.
Simultaneously, gold prices maintained a positive trajectory for the third consecutive day, trading above $2,750. This marks the highest level since November 1, driven by haven flows as uncertainty persists around President Trump's trade agenda. The precious metal's appeal remains strong as investors seek stability amidst geopolitical tensions.
In a significant development, MicroStrategy announced on Tuesday that it had acquired 11,000 Bitcoin, worth approximately $1.1 billion. This strategic purchase reflects the firm's confidence in Bitcoin's potential as a valuable asset despite market fluctuations.
Adding to the week's notable events, President Trump granted a pardon to Ross Ulbricht, the creator of Silk Road. This decision has contributed to the positive tone in risk sentiment as market participants digest the implications of Trump's actions.
The market's positive tone this week coincides with anticipation surrounding European Central Bank (ECB) President Christine Lagarde's upcoming speech. As investors await her insights, the improving risk mood helps the euro hold its ground against the dollar.