Bitcoin Breaks $100,000: Is This Just the Beginning of a New Bull Run?

Market Overview

Stocks surged on Monday morning, driven by a rally in technology shares, while Bitcoin soared above $100,000 for the first time in nearly three weeks. The Dow Jones Industrial Average and S&P 500 rose by 0.8% and 1.3% respectively, with the tech-heavy Nasdaq Composite up by 1.9%. This rally comes after the S&P 500 had posted losses for the week, marking a loss in momentum after the post-election euphoria.

Technology Stocks Lead the Charge

Chip stocks were at the forefront of this upward movement, with Foxconn reporting record fourth-quarter revenue, largely fueled by the booming demand for AI technologies. Micron shares jumped 11%, while ASML Holding and KLA Corp. saw increases of 9% and 5% respectively. The VanEck Semiconductor ETF was also up by more than 4%.

Nvidia, a major player in the AI chip market, gained 5% ahead of a highly anticipated keynote speech from CEO Jensen Huang at a significant consumer electronics trade show in Las Vegas.

Bitcoin's Impressive Rally

Bitcoin recently traded at $102,500, climbing from an earlier low of around $98,000. This marks a 45% increase since the election, with investors optimistic about a pro-crypto administration under President Trump and supportive Congress policies.

MicroStrategy, one of the largest corporate holders of Bitcoin, saw its shares increase by 6% following their announcement of additional Bitcoin purchases. The company now holds approximately 447,470 Bitcoins, valued at around $45 billion.

Economic Indicators

The yield on 10-year Treasurys saw a slight increase to 4.61%, as investors await the release of the December jobs report, which could influence the Federal Reserve's interest rate decisions. Meanwhile, gold futures dipped by 0.3%, trading at around $2,650 an ounce, while crude oil futures saw a small increase.