After finishing September – which had been its second-best ever – with a faltering start to the month, bitcoin was spooked by geopolitical tensions over Iran’s ‘major operation’ into Israel last month, registering a ramp-up in fears of an all-out conflict in the Middle East. It made sense that a downturn in markets would catch digital assets in its wake, but, as is so often the case, investors’ mood quickly swung positively into the black and market sentiment returned to favouring their favourite asset class. Bitcoin’s price, in fact, has returned to its previous highs, witnessing its biggest week-on-week rise of 9.6 per cent since last month’s run for the record books, hurtling from below $65,000 to scrape close to $70,000. It’s happening in spite of the US election on 3 November, with analysts and commentators pointing to a Trump win in the White House as reinforcing bitcoin’s price, reasoning that the presidential hopeful, who adopted a bout of crypto-friendly comments, would make the US the crypto centre of the globe.
At the same time, the market is responding to increased investor interest, with inflows of money into exchange-traded funds (ETFs) introducing more firepower into Bitcoin’s price. The inflow of institutional interest in new financial products based on Bitcoin, including futures that have recently been approved by the SEC, could also help to reduce Bitcoin’s price volatility. And the fact that new regulatory frameworks are coming into place, like Europe’s landmark MiCA legislation, is also creating a better policy environment for Bitcoin, as well as for the cryptocurrency sector at large.
Like gold rushing to the centre of a pan, Bitcoin approaches its previous all-time high. Market pundits have been remarking that this stage can be considered a litmus test for the crypto bull market. Some even predict it will hit $100,000 at the end of the year, a symbolic milestone in both market confidence and the history of crypto.
Source: Cinco Días
