These are the days of Bitcoin’s price surge, which has captivated finance, and eyes are turning even more to its imminent $70,000 breakout. In the daily fight to gain control of this virtual space, digital currency is currently trading around over $67,600, according to data from CoinGecko, which is near to figures last seen in early August.
For the first time in a long time, it looks like Bitcoin’s upward trajectory isn’t showing any signs of slowing down and several key factors are coming together to propel the price higher. Chief Investment Officer at Zerocap, Jonathan de Wet, is still enthusiastic about Bitcoin.
De Wet, quoted in an investor note published Wednesday, argued that Bitcoin is set to burst higher on the back of strong technical indicators. According to him, Bitcoin can rise to $70,000 a few weeks from now, and there’s a technical foundation there for more gains.
Trump Vows to Make America the Crypto Capital Leader
Like de Wet, more and more analysts are coming out saying Bitcoin’s momentum is unstoppable. There is now a range of factors being cited as being behind the surge, such as positive political developments in the United States, altering global monetary policies and rising demand for alternatives assets in times of economic uncertainty.
The political sphere, and especially the one in the US, is one of the most important tailwinds for the rise of BTC. As the 2024 presidential election looms, however, both the major political parties are aware of how lucrative the crypto sphere is becoming. In vowing to make America the ‘crypto capital of the world,’ Republican nominee Donald Trump has promised to safeguard digital asset users’ right to hold them in their own wallet.
It has even seemed like Trump will determine the creation of a national Bitcoin reserve, leaving the country’s regulatory landscape for cryptocurrencies upended. On the other side, the current Vice President Kamala Harris, the Democratic nominee, has pledged to regulate crypto with a more cautious but more innovative approach. Harris hopes to set clear rules to promote space innovation, while protecting the consumer.
Favourable U.S. Regulations Expected to Boost Bitcoin Investor Confidence
Intergovernmental blockchain expert Andy Lian sees this political backing as a game changer for the crypto industry. “The U.S. has a favorable regulatory environment on BTC which will increase investor confidence and demand,” Lian said. Trump’s proposed BTC reserve could be a paradigm shift for the industry that would bring institutional investors and further price increase, he added.
Global monetary policies are playing a huge role in Bitcoin’s price, but only outside of the U.S. political landscape. However, traditional assets aren’t so appealing given that central banks around the world are beginning to cut interest rates due to the slowing economic growth. Therefore, investors are turning towards riskier alternatives such as Bitcoin that is now being seen as gold alternative, a store of value.
These global monetary policies will push BTC to an all-time high as soon as next week, according to Lian. “It’s with central banks cutting rates and flooding markets with liquidity, Bitcoin is going to be a risk asset,” he said.
Whilst China’s debt, slow growth and poor demand, coupled with multi-billion dollar stimulus, makes Bitcoin’s future uncertain in terms of economic potential. Fear of market disruptions heighten when geopolitical tensions are surrounding the Middle East, a key energy player. But Bitcoin traders don’t have to worry, says BitMex co-founder Arthur Hayes, these challenges may not affect Bitcoin’s course.
Conclusion
As it remains the only major cryptocurrency to trade higher after AAPL and the futures of Bitcoin heat up once more, we conclude that $70,000 could be very close to Bitcoin’s rightful price. Even as ongoing challenges with China’s economy and geopolitical affairs in the Middle East continue to persist, experts still expect continued growth of BTC in the coming weeks, as investor confidence grows.
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