Crypto rockets: Bitcoin set to reach new heights
Bitcoin’s star is on the rise, with traders buzzing about the possibility of its price rocketing from a cool US$98,000 to a dazzling US$180,000. This optimism stems from the hope of the Federal Reserve slashing interest rates next year and a flood of interest from big-money institutional investors.
Bitcoin hit an all-time high of US$98,000, yesterday, November 24, thanks to a wave of positivity around Donald Trump’s open-armed approach to digital currencies. With his support, many expect a friendlier US regulatory environment, sweeping aside past red tape.
Whispers in the corridors of Trump’s transition team suggest the creation of a White House role devoted to digital asset policy, a game-changer that could send shockwaves through the market.
Peerapat Hankongkaew, the brains behind investment strategies at Bangkok’s Cryptomind Advisory, is upbeat that bitcoin could soon hit the magical US$100k mark, especially if interest rates drop and market confidence skyrockets.
Cryptomind Advisory had forecast at the dawn of 2024 that slashing rates would make risky assets more tempting, creating a torrent of capital due to increased liquidity.
“Each year, Bitcoin’s price is buoyed by several positive factors.”
This year alone, bitcoin’s value shot up in January after institutional investors got the green light to purchase spot bitcoin exchange-traded funds, while May brought a dollar dip that further fuelled crypto gains.
Trump effect
Trump’s recent electoral triumph has also turbocharged bitcoin’s value, given his penchant for digital assets, says Peerapat. However, the rollercoaster ride may include some dips, as he warns of potential short-term profit-grabbing.
“If you’ve already got skin in the bitcoin game, hang tight and wait for interest rate cuts and a weaker dollar.”
The Federal Reserve’s hint at halting interest rate reductions has rerouted cash into bonds and US stocks, pulling funds away from emerging markets, as Peerapat points out.
Looking to 2025, Cryptomind envisions bitcoin smashing through the US$100,000 barrier, with US$115,000 as the next hurdle. After a possible blip from profit-taking, its price could soar to US$180,000, fueled by continued rate cuts, reported Bangkok Post.
Should Trump roll out crypto-friendly policies, bitcoin and stablecoins like USDT and USDC might spark a bullish wave, Cryptomind suggests. Peerapat, however, underscores the need for vigilance, reminding investors of the crypto market’s notorious swings and inherent risks.
Frequently Asked Questions
Here are some common questions asked about this news.
What if Trump’s policies truly reshape the regulatory landscape for cryptocurrencies?
A favourable regulatory environment could stimulate institutional investment, increasing market stability and potentially driving a significant rise in cryptocurrency adoption and prices.
Why might interest rate cuts play a crucial role in Bitcoin’s price surge?
Lower interest rates can lead to increased liquidity, prompting investors to seek higher returns from riskier assets like Bitcoin, potentially driving its price upwards.
How could institutional demand alter the Bitcoin market landscape?
Institutional demand could provide increased capital inflow and validation, potentially stabilizing the market and attracting further investments, leading to price appreciation.
What if Bitcoin reaches and sustains a price above US$100,000?
Sustaining such a price could mark a new phase of market maturity, attracting broader acceptance and possibly spurring innovations in blockchain technology.
How does the weakening of the dollar impact Bitcoin’s attractiveness to investors?
A weaker dollar can enhance Bitcoin’s appeal as a hedge against currency depreciation, potentially increasing demand and driving up its price.
