Latam, November 6, 2024.- The benchmark cryptocurrency of the market, Bitcoin, has broken another record, reaching a new all-time high of $75,000, surpassing the record from March of this year of $73,738. This remarkable achievement reflects greater confidence in digital assets amid a landscape of economic and political changes, particularly the elections in the U.S. Traditionally, each increase in Bitcoin also has positive effects on other cryptocurrencies.
Since the beginning of 2024, Bitcoin has already accumulated an increase of more than 75%, a significant performance compared to various capital market assets that can be attributed to a combination of macroeconomic factors and financial innovation strategies, with the U.S. elections as a significant factor behind this increase.
From a macroeconomic perspective, the recent interest rate cuts in relevant economies, including the U.S., the Eurozone, and China, have injected liquidity into capital markets, and the expectation of further cuts contributes to positive investor sentiment with the recovery of the global economy.
Another important factor that should not be forgotten is the impact of the launch of exchange-traded funds (ETFs) in January in the United States, which expanded institutional participation in the cryptocurrency market. Bitcoin ETFs were launched by financial heavyweights BlackRock and Fidelity, along with seven other management companies, capturing strong interest and pushing the cryptocurrency further into conventional portfolios.
According to one of the latest Binance Research reports on spot BTC ETFs, since their launch, nine funds have managed $68.5 billion in bitcoins, representing about 5% of existing Bitcoins. This institutional position not only reflects confidence in Bitcoin's long-term viability but also highlights its growing role in the global financial ecosystem.
The approval of spot ETFs for Bitcoin, Ethereum, and Solana, the latter in the case of Brazil, should continue to drive institutional demand, which tends to benefit the entire crypto community.
The new historical record demonstrates the impact of support developments in the crypto landscape and reinforces the growing alignment of digital assets with global financial trends. Looking ahead, the cryptocurrency market remains optimistic, as Bitcoin's role in diversified portfolios continues to expand and gain more acceptance.