Donald Trump Acquitted, Mario Draghi Sworn In, Bitcoin Halts
15 Feb 2021 · 3rd Party Analysis
- Donald Trump cleared of inciting an insurrection
- Bitcoin eases off its highs after zeroing in on $50,000
Former US President Donald Trump was acquitted of inciting an insurrection on the US Capitol earlier this year. Seven Republicans broke ranks in the second impeachment trial of Mr. Trump in a Senate vote of 57 to 43 on the impeachment article.
For the former President to be found guilty, two-thirds of the Senate should have voted in support of the impeachment article. Based on the current result, Mr. Trump was cleared despite the strong effort by Democrats to convict him and then to hold a majority vote that would bar him from holding public office again. In this regard, Donald Trump has vowed he will most likely seek another run for president in 2024.
The conclusion of the trial will make room in Congress for the passing of President Biden’s $1.9tn economic plan. The stimulus prospects appear closer now and investors will be watching this week to see if the package will wind its way through Congress. The big government spending program could continue to boost the stock market, starting Tuesday as today the market is closed in observance of Presidents’ Day. The two dominant themes surrounding the rescue package, inflation, and rising interest rate, will continue to draw attention from the market. Market participants remain concerned that the stimulus package could shoot up inflation as the economy runs hotter, which could be a trigger for the Federal Reserve to change its policy. At the same time, the Federal Reserve in its meeting last week announced it will maintain its policy and tolerate inflation higher than the standard 2% target
A New Administrative Era for Italy
Meanwhile, in Europe, Mario Draghi was sworn in as Italy’s new Prime Minister. The former European Central Bank chief will now move to pick cabinet members after he secured enough support from the Italian parliament. Mario Draghi, also called Super Mario for his efforts to save the euro in the aftermath of the financial crisis, was called on by President Sergio Mattarella earlier this month to lead the Italian government after Giuseppe Conte’s coalition collapsed.
Mr. Draghi now faces tough challenges in the immediate term, namely a response to the Covid-19 pandemic, economic downfall, and increasing unemployment.
On the cryptocurrency front, bitcoin is pausing to close in on $50,000 on Sunday. The number one digital coin peaked above $49,500, continuing its epic run for the year. The recent rally is boosted by evidence that more financial companies begin to offer support and services for cryptocurrencies. Moreover, Tesla chief Elon Musk turned out to be the biggest crypto cheerleader this year as his tweets are strongly in favor of bitcoin. On top of that, Tesla’s purchase of $1.5bn in bitcoin and the news that a Morgan Stanley investment unit is considering a $150bn investment arm in bitcoin added fresh ammunition to bitcoin’s gains. On Monday, bitcoin eased off its highs by dropping over 6% to $46,000.
Another largely popular crypto coin, Dogecoin, has tumbled 20% from its record. The crypto asset, engineered as a joke in 2013, has tanked over the past week after it peaked above $0.08.