Why It Matters

Bitcoin has rocketed more than 30% since the US election, smashing through the $90,000 barrier for the first-time last week. A mix of factors is fuelling the frenzy. For starters, traders have been betting on pro-crypto changes from the incoming US administration, which has floated ideas like a national bitcoin reserve and looser regulations. Plus, there’s been increased buying from big institutional investors, with some viewing bitcoin as a hedge against inflation and fluctuations in traditional currencies. Then there’s good old FOMO playing a role. But don’t be afraid to be sceptical: DOGE tripled in value after Elon Musk was tapped to lead the “Department Of Government Efficiency” (yes, that’s DOGE), and that suggests hype might be playing more than just a minor role.

US consumer prices rose by 2.6% in October compared to the same time last year – up from 2.4% in September. The so-called core measure, which excludes the cost of more volatile things like food and energy, held steady at 3.3%.

The numbers were still well higher than the Federal Reserve’s 2% target, and already some investors are on edge about what the president-elect’s proposed tariffs and growth-focused policies might mean for the future of inflation. If nothing else, it’s a reminder that the “last mile” in this inflation battle may be tricky.

US stocks hit a new milestone, outperforming their European counterparts by a wider-than-ever margin. Specifically, the S&P 500 was up 25% so far this year, compared to the 5% climb seen in Europe. The widening gap wasn’t a complete surprise: Europe’s economy was already looking shaky, and the potential for new tariffs and trade tensions could add even more pressure. Still, investors are now paying a record 70% valuation premium for US stocks over European ones, with some of them betting on a raft of new market-friendly policies to come. It’s worth keeping in mind though that markets have a habit of surprising folks, and high expectations don’t always match reality.