By Michael Scott
Bitcoin witnesses robust upward momentum, with experts projecting a surge beyond the March all-time high.
Bitcoin’s uptrend this week erodes the signs of slowing down, with multiple experts forecasting a breach of the $70K tag. Despite the 1.2% intraday gain for the world’s largest crypto in market value, it trades at $68,018.63 after swelling to highs never witnessed since the onset of August.
With an 11% price rally in the past seven days, Bitcoin outperforms the global crypto market and is up 6.60%. Still, the price is 8.06% below the BTC ATH of $73,737.94 per CoinGecko data.
Is Bitcoin Bullish Steam Sustainable?
In a recent investor note, Zerocap chief investment executive Jonathan de Wet considers the BTC upward momentum to remain solid. The executive opined in his Wednesday note that Bitcoin could test $70,000 in the future, spotlighting a technical breakout as offering a solid foundation for subsequent gains.
Market observers weigh the impact of China’s economic strife on the crypto industry. de Wet notes that the soaring local government debt, decelerated growth, and weak demand are concerns that affect risk-on assets.
Given the convergence of several tailwinds, Bitcoin breakout to set a new all-time high (ATH) is imminent. The global second-largest economy announced the move to inject a hundred billion dollars via stimulus measures to spur the stock market and demand.
The centerpiece lies in the £86 billion of financing facilities China extends as a stimulus towards share buyback and non-bank financial firms acquiring equity and buying equities.
The China stimulus features lower interest rates on market instruments and the minimum downpayment on second homes. Such coincides with political developments in the US election, with pundits optimistic about favorable policies towards the crypto industry.
The Grand Old Party (GOP) candidate Donald Trump reiterates making the US a global crypto capital. Besides recently unveiling the World Liberty Financial (WLFI), the former president assured to safeguard users’ right to custody of assets.
Democratic nominee Kamala Harris has, in a recent address, promised rules formulated to ease the crypto road as a constituent of fostering innovation. Trump’s previous disclosure harbors a plan to establish a Bitcoin reserve that intergovernmental expert Anndy Lian considers the turning point for digital assets regulation.
The blockchain specialist considers the political backing could result in a more favorable regulatory context, thereby fostering investor confidence and demand. As such, Bitcoin could ride on the tide to realize a new peak level next week, propelled by global monetary policies. Lian is optimistic that extensive rate cuts by leading central banks thereby boost the prices of risk-on assets, including crypto.
BTC Price Solid Rise as Geopolitical Conflict Intensifies
Market experts express concerns about geopolitical tensions within the Middle East, a dominant player in energy production and trade supply chains. Traders fear could decline if BitMex co-founder Arthur Hayes prediction becomes a reality.
Hayes predicts Bitcoin price will rise sharply despite the escalation of geopolitical conflicts. He considers the conflict to drive inflation and potentially scale government spending.
Hayes illustrates in the recent blog post that the US government intervention through financial input as the Middle East escalates could trigger money printing. Such is possible to fuel the subsequent bull run for Bitcoin.
Hayes considers the war as inflationary, particularly indicating the US could borrow money to fund the bombs sale to Israel. The executive recounts how the Fed and the commercial banking system will purchase the debt through balance sheet growth and printing money. Consequently, the intervention will propel Bitcoin stupendously as the war intensifies.
Hayes illustrates that global conflicts that involve the US often lead to monetary expansion. He observes that as more dollars enter the economy via government debt, Bitcoin, as a decentralized asset, will benefit investors as they pursue protection from inflation.