Bitcoin's price surge shows no signs of abating, with some predicting a breach of the $70,000 price tag next week.
The world's largest crypto is currently trading above $67,600, a level not seen since early August, CoinGecko data shows.
Yet is the current rally sustainable?
Bitcoin's upward momentum remains strong, according to Jonathan De Wet, chief investment officer at XeroCap, in an investor opinion. Note on wednesday
“We see [Bitcoin] At $70,000 next week,” De Wet said, pointing to a technical breakout that provides a solid base for further gains.
A number of tailwinds are beginning to converge, including political developments in the United States, fueling optimism over favorable policies geared toward the crypto industry.
Republican nominee and former President Donald Trump has vowed to make America more like the world Crypto capitalIn addition to protecting the right of users to safeguard their assets.
Democratic nominee and incumbent Vice President Kamala Harris, meanwhile, has promised to create rules of the road for crypto while trying to spur innovation.
In Trump's plan Bitcoin Reserve Could mark a turning point for crypto regulation, says Andy Lian, an intergovernmental blockchain expert Decrypt.
“This political support could lead to a more favorable regulatory environment, increasing investor confidence and demand,” Lian said.
Lian believes Bitcoin will reach its all-time highs next week, driven by global monetary policy, including massive rate cuts by major central banks that could boost risk assets, including crypto.
Still, questions remain about China's economic conflicts, De Wet said, including rising local government debt, slow growth and weak demand for goods and services.
The world's second largest economy has pledged to inject Hundreds of billions of dollars To kickstart its stock market through stimulus measures and boost demand.
There are concerns all around Geopolitical tensions The region remains a dominant player in the energy production and trade supply chain in the Middle East.
However, traders have nothing to fear if the musings of Bitmex co-founder Arthur Hayes are correct.
Edited by Sebastian Sinclair
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