Bitcoin ($BTC ) continues to break records, hitting $95,000 for the first time on Wednesday morning, shortly after reaching a new peak of $93,500 the day before. This is a sign that the world's largest cryptocurrency is on a strong growth trajectory, aiming for $100,000 in the near term.
Factors Driving Bitcoin Prices
1. Advantages from new financial products:
• The Spot Bitcoin ETF from #BlackRock has begun trading in the US. On its first day, these derivatives recorded large trading volumes, with a nominal value of up to $1.9 billion USD.
• These products allow individual and institutional investors to bet on Bitcoin price fluctuations, adding to the liquidity and appeal of the market.
2. Favorable policies from the US government:
• Following Donald Trump's victory in the presidential election, Bitcoin received support from policies promoting the growth of the cryptocurrency sector.
• One of Trump's key plans is to establish a national Bitcoin reserve – a move that enhances confidence in the future of this asset.
3. Positive investor sentiment:
• Bitcoin's growth this year reflects the increasing interest of both institutional and individual investors. Analyst Valentin Fournier notes that the market is in an 'accumulation' phase, preparing for a significant breakout at the end of the year.
• He predicts that if this trend continues, Bitcoin could reach $120,000 by 2025, thanks to increasing interest and its long-term potential.
Current Bitcoin Market
In the past 24 hours, approximately $78 billion USD worth of Bitcoin has been traded. Market sentiment is at an 'extreme greed' level, according to the Crypto Fear & Greed Index, indicating significant expectations from investors.
Conclusion
Bitcoin is nearing the historic milestone of $100,000, supported by political, financial, and market sentiment factors. However, investors should be cautious as the market heats up, as strong volatility remains a hallmark of cryptocurrency.