Bitcoin Peaks Yearly High, reaching $55k: What’s Fuelling the Drive?
Posted on 24/10/2023 | 382 Views
Bitcoin saw a remarkable ascent past the AU$55,000 mark this morning, a rate it hasn’t touched in over 17 months. As we roll deeper into October, we reflect on what is driving this bullish trend.
Bitcoin’s value escalated to over $55,000, marking a 14% rise overnight. This performance overshadowed the wider crypto market cap which registered a 8% climb. For a historical touchpoint, Bitcoin last experienced such highs in May 2022.
In the lineup of star performers among digital assets overnight;
Flipping the lens to the U.S. stock scene, Monday took a turn from initial losses to a mixed close, especially as the 10-year Treasury yield recoiled after its first 5% hit in 16 years. The ASX200 has seen a similarly dire week, dropping over 250 points last week.
This begs the question: what’s driving the price increases we are witnessing across the cryptocurrency and precious metals markets? Various factors are at play here:
A volatile geopolitical landscape has undoubtedly impacted various investment avenues. The unsettling events in Israel have been a driver across the global financial scene. Bitcoin, which often serves as a pulse for the crypto market's health, witnessed a downturn initially, reflecting broader apprehensions in the digital domain – followed up by a string of extremely bullish days. Historically, in the face of rising geopolitical strains, investors have sought refuge in trusted assets like gold. The last week has been no exception, as both precious metals and crypto spiked, showcasing the tangible impact of world events on financial markets.
Another beacon of positivity emerged over the last few weeks as JPMorgan, grabbed crypto headlines. They successfully executed a live blockchain-based transaction. Collaborating with heavyweights like BlackRock and Barclays, this venture entailed tokenising shares in a JPMorgan money market fund. The endeavour spotlighted the harmony achievable between conventional banking systems and emerging blockchain tech.
Lastly, amid the mounting global debt and monetary instability, cryptocurrency, with Bitcoin (BTC) at the forefront, isn't just a hedge—it's a performer. Often dubbed "digital gold" or “gold 2.0”, Bitcoin stands as a bulwark against currency devaluation and inflation. Here's why:
- Scarcity: Unlike endless fiat currency printing, Bitcoin boasts a rock-solid cap at 21 million coins, mirroring the finite nature of assets like gold.
- Inflation-Proof: Bitcoin's inbuilt supply mechanisms, including the halving process, shield it from inflation's corrosive effects. Your purchasing power? Safe.
- Unshackled & Autonomous: Bitcoin thrives on a decentralized blockchain, free from the whims of governments or central banks. It's the epitome of financial freedom.
- Wealth Protector: Much like gold, Bitcoin is seen as a wealth-preserving tool, especially during economic storms and currency downswings. A digital safety net, if you will.
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