Bitcoin is on a tear. Earlier, it crossed $93,000 for the first time in history, spiking up over 3% and setting a new record at $93,469.08.
It’s the latest surge in what’s been a wild post-election rally. Inflation concerns are creeping up, especially after the recent Consumer Price Index (CPI) data showed a 0.2% rise in October, pushing the year-over-year rate to 2.6%.
Nothing unexpected, but enough to make investors squirm. And when they squirm, they turn to assets that stand strong against inflation, which, for a lot of them, means Bitcoin.
Other cryptocurrencies were riding on Bitcoin’s coattails, with Ethereum and Solana inching up by about 1% each. Dogecoin, on the other hand, jumped 3% after news hit that Tesla CEO Elon Musk would be joining President-elect Donald Trump’s administration. His connection to Trump’s campaign has fueled Dogecoin’s momentum in ways no one predicted.
Crypto miners show earnings as Bitcoin soars
Bitcoin miners, who’ve been mining away through all the ups and downs, released their quarterly earnings reports this week, and some did better than expected. Hut 8, for instance, surpassed estimates and even announced plans to expand into artificial intelligence.
HIVE Digital saw a mixed bag in its report but still managed to climb, while MARA Holdings wasn’t as lucky. They missed earnings expectations, and it showed with a hit in premarket trading.
Meanwhile, Treasury yields and the U.S. dollar were moving up on Tuesday, reflecting investor expectations of Trump’s upcoming economic moves. He’s hinted at tax cuts and tariffs, policies likely to feed inflation.
And while stocks felt the squeeze from higher borrowing costs, Bitcoin continued to draw interest from those looking to shelter their investments.
Noelle Acheson, author of the Crypto Is Macro Now newsletter, thinks crypto’s relatively “muted” leverage helps curb the risk of any sudden price plunge. She sees “a market breather” as likely but expects it to be brief, calling the current market tailwinds “strong.”
MicroStrategy’s bonds skyrocket with Bitcoin
Bitcoin’s record highs are jolting the U.S. convertible bond market, all thanks to one name: MicroStrategy. This software company holds around $24 billion in BTC. And that has pushed its February 2027 convertible bonds up 60 cents on the dollar in November alone.
This rise has set the bonds on course for their best month since they were first issued in 2021. MicroStrategy’s $2 billion Bitcoin purchase made the bonds attractive for conversion, putting extra money in the pockets of investors.
The bond surge has also lifted MicroStrategy’s stock (MSTR) by 46% this month alone, stacking up its 2024 gains to over 460%. This rally isn’t just about MicroStrategy though. Other crypto-linked firms, like Coinbase and Core Scientific, saw their convertible bonds rise too.
It’s a big deal for the convertible bond market, which is still recovering from the tech stock collapse in 2022. Now whether Bitcoin can hit $100K before the weekend is the burning question. But as we’ve seen, in this bull run, anything can happen – and fast.
