Bitcoin’s price surge shows no signs of slowing down, with some predicting the price topping $70,000 within the next few weeks.
The world’s largest cryptocurrency is currently trading above $67,600 after ballooning to its highest price since early August, according to data from CoinGecko.
But is the current bull market sustainable?
ZeroCap chief investment officer Jonathan de Wet said in a note to investors on Wednesday that Bitcoin’s upward momentum remains strong.
“We see[Bitcoin]reaching $70,000 in the coming weeks,” DeWet said, noting that the technical breakout provides a solid foundation for further upside.
Several tailwinds are starting to come together, including the political situation in the United States, increasing optimism about favorable policies for the crypto industry.
Republican candidate and former President Donald Trump has vowed to protect users’ right to store their assets and make the United States the crypto capital of the world.
Meanwhile, Democratic candidate and current Vice President Kamala Harris has promised to create rules for cryptocurrencies while encouraging innovation.
Andy Liang, an intergovernmental blockchain expert, told Decrypt that President Trump’s plan to create a Bitcoin reserve could be a turning point in crypto regulation.
“This political support could lead to a more favorable regulatory environment and boost investor confidence and demand,” Liang said.
Lian believes Bitcoin will reach an all-time high next week due to global monetary policy, including major interest rate cuts by major central banks, which could boost risk assets including cryptocurrencies.
Still, questions remain about China’s economic situation, including soaring local government debt, slowing growth and weak demand for goods and services, DeWet said.
The world’s second-largest economy has vowed to inject hundreds of billions of dollars through stimulus packages to boost stock markets and stimulate demand.
There are also concerns over geopolitical tensions in the Middle East, as the region continues to play a dominant role in energy production and trade supply chains.
But if BitMEX co-founder Arthur Hayes’ speculations turn out to be correct, traders have nothing to fear in that regard.
Edited by Sebastian Sinclair
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