The earlier forecasts of cryptocurrency optimists are slowly starting to come true. During the night on Monday, the price of Bitcoin once again crossed the $70,000 mark after six months, bringing within sight the record price tag of $74,000 from this spring. The rest of the virtual currency market is also growing, driven up by, among other things, bets on the victory of self-proclaimed “crypto-president” Donald Trump in the upcoming US elections. Reasons for the current revival of Bitcoin et al. but according to experts, they are more diverse.
“The consensus in the market is that bitcoin is likely to do well regardless of the outcome of the election,” he believes Bloomberg FalconX broker David Lawant. A similar opinion recently he uttered and Larry Fink, the head of the world’s largest asset manager, BlackRock, according to whom the future of crypto-currency basically does not matter whether Kamala Harris or Donald Trump wins the election.
“We believe in Bitcoin as a separate asset class. It is an alternative to gold and other commodities,” says Fink. At the same time, the growing interest in bitcoin is also helping his business, as BlackRock launched its bitcoin exchange-traded fund (ETF) in the winter, which holds the cryptocurrency as an underlying asset. Over the fall, BlackRock’s ETF — as well as eleven other bitcoin ETFs from other firms — saw increased money flowing into the BlackRock ETF, contributing to the current rally in bitcoin’s price.
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“In the first year of their existence, over $20 billion in total flowed into Bitcoin ETFs. For context: It took gold ETFs five years to reach these numbers.” calculated recently Bloomberg analyst Eric Balchunas on the X network. But the launch of the first gold exchange-traded fund took place already twenty years ago. This makes the comparison in absolute numbers slightly more complicated due to the weakening purchasing power.
