Bitcoin price is breaking new highs every day./Newsis
Bitcoin, the leader in cryptocurrency, is breaking record highs every day.
It is analyzed that a large number of investors are flowing in due to the election of former President Donald Trump and the Federal Reserve, the U.S. central bank, which lowered its benchmark interest rate again this month. The market predicts that although there will be short-term volatility, it will easily hit $80,000 this month.
According to CoinMarketCap, a virtual asset market relay site, on the 10th, the price of Bitcoin is trading in the $76,400 range. The previous day, it hit an all-time high of $77,100 during intraday trading.
Bitcoin has been on the rise every day, hitting $75,000 on the 6th and $76,000 a day later. Additionally, from the 5th ($66,900), the day of the US presidential election, to this day, Bitcoin soared by 14.2% (about $10,000).
Bitcoin’s surge is due to expectations about the pro-virtual currency policy promised by former President Trump before the presidential election.
At the ‘Bitcoin 2024 Conference’ held in July, President-elect Trump said, “Never sell your bitcoin” and said he would make the United States the ‘capital of cryptocurrency’ by using bitcoin as a national reserve fund. It has been emphasized.
As such, when Trump’s second term in office begins in earnest, positive phenomena are expected to appear in the virtual currency market, such as easing financial regulations, improving trust in virtual assets, and increasing liquidity due to the activation of stable coins following the issuance of U.S. Treasury bonds.
In addition, the Federal Reserve’s decision to cut the benchmark interest rate again following last September is also acting as a positive factor for the Bitcoin price.
At the Federal Open Market Committee (FOMC) meeting on the 7th (local time), the Federal Reserve decided to lower the benchmark interest rate by 0.25 percentage points (p) from 4.75 to 5.0 percent to 4.50 to 4.75 percent. Typically, a decline in interest rates acts as a positive factor in the virtual asset market because it increases investment sentiment for risky assets with high volatility.
Accordingly, the market predicts that $80,000 will be easily recorded this month, and that $90,000 may be possible depending on the inflow of Bitcoin spot exchange traded funds (ETFs).
An official from the virtual asset industry said, “After former President Trump was elected, the 11 Bitcoin spot ETFs listed on the U.S. stock market recorded the largest net inflow ever,” adding, “It can be interpreted that the inflow of institutional investors has begun, so the settlement of $80,000 this month is “It is expected to be OK, and up to $90,000 is possible depending on the inflow of spot ETFs,” he said.
In the market, the effect of ‘Uptober’ (a compound word of ‘up’ and ‘October’) appeared last October, and following the anticipation of ‘Trump’s election’ and the actual election, plus the effect of interest rate cuts, weight is placed on the upward side.
Kim Min-seung, head of Corbit Research Center, said, “It is very likely that a ‘red sweep’ will be led by the Republican Party in both the President and the House of Representatives, which will be a strong positive sign for the development of the virtual asset industry.” “Because the rising pattern has been repeated, there is a high possibility that prices will rise,” he said.
