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Bitcoin Poised to Break All-Time High Amid Shifting Economic Landscape

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Bitcoin Poised to Break All-Time High Amid Shifting Economic Landscape

According to Finance Yahoo, bitcoins next all-time high may be just days away, as noted by Standard Chartered analyst Geoff Kendrick. The leading cryptocurrency is expected to exceed its previous $109,000 record within the next week, with a potential climb to $130,000 between February and March.

Read also: Blockchain Explained: Why It’s More Than Just Bitcoin

Cryptocurrency prices experienced volatility following Donald Trump’s inauguration, which had sparked anticipation for crypto-friendly policies. Despite Trump’s executive order on cryptocurrencies being less impactful than hoped, the Federal Reserve’s decision to maintain steady interest rates has dissipated some uncertainties that previously hindered cryptocurrency growth, Kendrick highlighted.

Recent market activity presents a favorable backdrop for bitcoin. A downturn in US tech stocks, triggered by the emergence of a new, cost-effective AI tool from a Chinese startup, led to a $1.1 billion liquidation of long bitcoin positions on futures exchanges. However, the cryptocurrency market exhibited resilience, maintaining momentum for future growth.

“Market positioning is a lot cleaner as a result, and for what its worth, if cheaper AI lowers inflation (at the margin), then risk assets, like BTC, that have nothing to do with AI should benefit,” Kendrick stated.

The global embrace of bitcoin seems to be on the rise, with the Czech National Bank potentially converting 5% of its EUR 140 billion reserves into bitcoin, a move that, if implemented, could see them holding approximately 69,000 BTC. This would dwarf El Salvador’s current holding of 6,049 BTC, according to Kendrick.

Additionally, Swiss campaigners are collecting signatures to force a vote on adopting bitcoin, which may significantly impact its valuation given that Swiss reserves are notably larger than the Czech Republic’s.

Bullish projections include a US bitcoin reserve potentially influencing other nations to follow suit, which could drastically elevate bitcoin’s value. Although the US has yet to establish a reserve under Trump, the executive order allows for a “stockpile” of the 207,000 bitcoin already in possession. Furthermore, the Securities and Exchange Commission’s removal of Staff Accounting Bulletin 121 is anticipated to amplify institutional interest in bitcoin by enabling US lenders to act as crypto custodians. This move is a critical factor in Kendrick’s bullish outlook, setting a $200,000 target for bitcoin by year-end.

Source: IndexBox Market Intelligence Platform