Bitcoin hit its highest price since late spring this week, thanks in part to the host of market factors surrounding the upcoming US presidential election. That includes leading asset managers such as the hedge fund billionaire Paul Tudor Jones, who offer bitcoin as a hedge in the case of rampant inflation, as proposed monetary policies by Democratic presidential candidate Kamala Harris and incumbent Donald Trump are expected raise the US national debt even higher. Timing this spike perfectly is the recent cut in interest rates by the Federal Reserve, which is expected to cause a sport in the price of gold, and speculative support for Trump, who recently pivoted to support bitcoin. Currency speculators are also pouring capital into spot bitcoin exchange-traded funds (ETFs) approved by regulators earlier this year in the US.
Photo by Justin Sullivan/GettyBesides, the actual holdings of spot bitcoin ETFs that are up and running – run by operators such as BlackRock and Fidelity and the crypto-focused Grayscale – total $66 billion and account for about 5 per cent of the size of the bitcoin market. Bitcoin’s market valuation dwarfs that of Ethereum and all other major cryptocurrencies, and remains dominant in the crypto universe. After hitting an all-time high of $73,750 in March this year, its value is up more than 300 per cent from its nadir in late 2022, a resurgence from the ‘crypto winter’ and concurrent industry trials.
Source: Forbes
