As I type, the price of Bitcoin reached a near record high, to around US$71,200, just far off its peak in March 2024 of around US$ 74,000. In the past week, the coin has risen by more than 5 per cent, showing strong investor sentiment in the largest capitalisation cryptocurrency. According to data from CoinGecko, the cryptocurrency market has soared to a global capitalisation of $2.4 trillion, with a 2.8 per cent increase in the past 24 hours. This was in response to a mix of macroeconomic factors, such as major central banks reducing interest rates, huge fiscal stimulus from China and a growing appetite for US-based Bitcoin ETFs.
External factors like politics, especially the policies of US presidential candidates on cryptocurrency, are also fuelling this sense of buoyancy, according to Indodax CEO Oscar Darmawan. He said that the frenzy over Bitcoin-based exchange-traded funds in the US is a signal that people’s perspective is shifting. Though Bitcoin and other cryptocurrencies are still mainly used for trading and investment purposes, he said Bitcoin ‘could be a supplement to your portfolio in these conditions of volatility and inflation’.
According to Darmawan, the general upward segment that Bitcoin, Ethereum (ETH) and even Solana (SOL) were in, represents an increase in the market’s confidence and interest towards digital assets. The liquidity pushes showcase a broader belief in the crypto market, backed by the sheer fundamental and growing institutional backing that promises to increase the overall growth of the market, which will attract more and more, not just institutional, but retail investors.
Source: https://economy.okezone.com/
