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Bitcoin Reaches $72,000: Five-Month High Driven by Election Anticipation

Bitcoin has soared to a five-month high, hitting a remarkable $72,308, driven primarily by the upcoming U.S. presidential election and a positive outlook for cryptocurrencies.

The price of Bitcoin has increased by more than 3%, marking its highest value since May 21. This surge brings Bitcoin’s gains in October to over 11%. Other significant cryptocurrencies also experienced upward momentum, with Ether climbing 4% to reach a ten-day high of $2,637, Binance Coin rising 2% to an eight-day high of $608, and Solana increasing 2% to a three-month high of $182. 

Additionally, shares of companies engaged in Bitcoin mining—an energy-intensive process that unlocks new bitcoins from the blockchain—have also risen significantly. Firms like Core Scientific, Marathon Digital, and Riot Platforms saw their stock prices increase by at least 15% in October.

Several key factors contribute to this remarkable rally. Foremost is the impending U.S. presidential election on November 5, where candidates Kamala Harris and Donald Trump are advocating policies that could lead to a dramatic increase in the national debt. Following the Federal Reserve’s interest rate cut last month, there are growing concerns among sceptics that current monetary policies may be insufficient to tackle inflation. This environment has led investors, including billionaire Paul Tudor Jones, to turn to Bitcoin and gold as hedges against inflation. Notably, gold prices also rose by 6% following the Fed’s rate cut on September 18.

Moreover, the increase in Bitcoin prices aligns with rising odds in the betting markets anticipating a Trump victory. Such an outcome could be favourable for the cryptocurrency market, as Trump has expressed support for pro-crypto policies and has proposed establishing a “strategic national Bitcoin reserve.”

Furthermore, the approval of spot Bitcoin trading funds by U.S. regulators in January has created additional momentum in the market, attracting billions of dollars from institutional investors.

The combination of political developments, market sentiment, and regulatory changes has propelled Bitcoin to new heights. As investors remain optimistic about the cryptocurrency’s future, the upcoming election and its implications for monetary policy will likely play a significant role in shaping market dynamics in the months to come.

Amazon’s AI Bets and Cost-Cutting Measures Pay Off, Boosting Stock by 5%

Shares of Amazon surged over 5% in after-hours trading on Thursday after the company reported stronger-than-expected third-quarter earnings. Amazon announced earnings per share of $1.43, alongside revenue reaching $158.9 billion, surpassing analyst projections of $1.14 per share and $157.2 billion in revenue, according to FactSet.

Key Financial Highlights

  • North American Sales: Amazon’s North American segment recorded a 9% year-over-year sales increase, totalling $95.5 billion.
  • AWS Growth: Amazon Web Services (AWS), the company’s cloud unit, posted $27.5 billion in revenue, marking a 19% rise compared to the same period last year.
  • Stock Movement: Although Amazon’s stock initially fell over 3% on Thursday before earnings were released, it rebounded significantly in after-hours trading. So far, Amazon shares are up almost 24% year-to-date.

Background on Amazon’s Strategy

Amazon’s recent efforts include major cost-cutting moves, guided by CEO Andy Jassy, to streamline operations since 2022. This restructuring has led to over 27,000 layoffs and the closure of initiatives such as Amazon’s telehealth and same-day delivery services. Despite these reductions, Amazon is doubling down on other key areas, like a $52 billion investment in nuclear energy to support data centers in Virginia, Mississippi, and Ohio. The company is also moving forward with **Project Kuiper**, aiming to build a satellite network of 3,236 units to broaden internet access worldwide—a venture projected to involve over $10 billion in launch costs across five years, according to analysts from Wedbush Securities.

Amazon’s Market Reach

July’s Prime Day achieved “record-breaking sales,” while the introduction of Amazon’s AI-powered shopping assistant, **Rufus** was rolled out to U.S. customers last month. Notably, Amazon had slightly missed expectations in the previous quarter and cautioned that intense news cycles could distract customers—a factor cited by CFO Brian Olsavsky during the second-quarter earnings call. Despite these challenges, the company’s annual revenue is expected to remain strong.

Noteworthy Figures

Amazon’s market capitalization has reached $1.96 trillion, making it the fifth-largest company globally, trailing behind Apple, Nvidia, Microsoft, and Google. Meanwhile, Jeff Bezos, who served as Amazon’s CEO until 2021, holds a net worth of $204.1 billion, much of which is tied to Amazon’s stock. Market fluctuations ahead of Amazon’s earnings report momentarily decreased Bezos’ wealth by around $6 billion. Bezos ranks as the second-richest American, after Elon Musk, on the Forbes 400 list.

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