Bitcoin, the most valuable and best-known cryptocurrency on the market, has accumulated a rise of 5% in the week, reaching around $72,000, in a context marked by the volatility generated by the proximity of the presidential elections. from the United States, scheduled for next Tuesday.
According to market data consulted by Europa Press, bitcoin registered a fall of 0.4% on Wednesday afternoon, although it did so after having previously had a four-day upward streak.
In that sense, the cryptocurrency reached a price of $73,563 last night, a level very close to the historical maximum reached on March 13, when it stood at $73,797.
Bitcoin, which trades 24/7 every day of the week, has accumulated a 13% revaluation so far in October after having recorded an 8% rise in September; largely due to investor debates regarding the timing and speed of interest rate cuts by the United States Federal Reserve (Fed).
“The US elections and the decision of the US Federal Reserve (Fed) are expected to dictate the outlook for cryptocurrencies until the end of the year,” said Julius Baer digital assets analyst Manuel Villegas, who also cited the “solid inflows” of capital to this market as another element of bullish support for cryptocurrencies.
Going into detail, Villegas has pointed out that bitcoin’s strength should persist if the odds of a “sweeping victory” for the Republicans continue to increase; On the other hand, a big victory for the Democrats, less likely according to the analyst, could cause a general sale of these digital assets.
“The extreme risk scenario is framed in the fact that any of the parties do not recognize the results and this translates into a significant reduction [del precio]”he added.
Furthermore, linked to monetary policy, he commented that the market foresees a rate cut of 25 basis points by the Fed: “If this level is exceeded, sentiment towards bitcoin is likely to improve, while if it remains short, the opposite is likely to occur,” he indicated.
