Bitcoin continues its wild rise, heading towards the $100,000 level, after recording a significant increase in the past hours. The famous digital currency briefly crossed the $93,000 barrier on Thursday, continuing to benefit from expectations of new interest rate cuts by the US Federal Reserve. This new support is one of the main factors that helped push the digital currency to these record levels.
- Factors affecting the rise of Bitcoin
Bitcoin witnessed an increase of nearly 6%, reaching a record level of $93,318, but failed to maintain these gains for a long time. However, it did not decline significantly, as it recorded a steady increase of 5% over the past 24 hours, reaching $91,000 at 11:30 am Riyadh time.
Many factors contribute to this rapid rise in Bitcoin, most notably expectations of interest rate cuts by the Federal Reserve. With the potential for interest rate cuts, many expect this move to push investors towards alternative assets such as Bitcoin, which are not affected in the same way by traditional market fluctuations. Therefore, Bitcoin becomes an attractive option for many investors seeking to hedge against inflation and financial market volatility.
- Political trends and support for digital currencies
Another aspect of the support that Bitcoin is receiving is the growing stance of politicians and economic leaders in favor of digital currencies. US President-elect Donald Trump has repeatedly expressed his support for this type of currency.
which has contributed to increasing confidence among investors in digital markets. Trump’s statements are believed to have helped spur expectations that digital currencies will be an integral part of the global financial system in the future, which has boosted confidence in Bitcoin.
The economic uncertainty that many countries are experiencing, including fears of local currency inflation, is also pushing individuals.
Ethereum, Binance Coin and Solana achieve significant gains in digital markets
Amidst the recent surge in cryptocurrencies, Ethereum, the second-largest cryptocurrency by market value after Bitcoin, has seen a 1.2% increase to $3,212. This rise comes amidst great optimism about the future of cryptocurrencies and the increased demand for digital assets in general.
Binance Coin was not far from this trend, as it recorded a remarkable rise of 6% to reach $648. This increase was supported by the increase in trading volume and the increasing demand for digital trading platforms operated by Binance, one of largest trading platforms in the world.
Solana, on the other hand, recorded a 6.3% increase to reach $219, reflecting the growing interest in it as an alternative option to traditional and other digital currencies. This rise is considered a confirmation of Solana’s continued growing adoption as a strong currency in the market.
which places it among the preferred assets for investors.
Economic Factors’ Effects on Cryptocurrencies
Although Ethereum, Binance Coin, and Solana have all seen significant increases in their value, these currencies remain vulnerable to global market fluctuations. Monetary policy changes, especially in the United States, have a significant impact on the movement of digital markets. Factors such as inflation and shifts in interest rates play a major role in shaping future market expectations.
Will these gains continue?
Cryptocurrencies are expected to continue to make gains in the coming months, driven by ongoing technological innovations. These currencies could play a major role in reshaping the global financial system as they become increasingly relied upon by individual and institutional investors.
Ethereum, Binance Coin, and Solana remain among the most prominent investment options in this space.
as innovations in blockchain technologies boost the value of these assets. At the same time, investors should be aware of the potential challenges that these currencies may face in the future.
Potential Support for Bitcoin from Trump’s Statements: Will the Upward Momentum Continue?
Bitcoin continues its remarkable upward journey, as its value has increased by 34% since the US elections on November 5.
which has raised questions among investors and speculators about whether this momentum will continue. One important factor that may affect Bitcoin’s movement is the rhetorical support that former US President Donald Trump has given to digital currencies. Trump, who has shown his support for digital assets on several occasions, may contribute to pushing Bitcoin to new record levels that may reach $100,000, according to expectations.
Will Trump’s influence on Bitcoin continue?
It is known that Trump’s statements regarding digital currencies have a significant impact on the markets.
as these statements can boost the demand for Bitcoin. At a time when some governments and central banks are showing reservations about digital currencies, Trump’s position comes to add moral support to these assets. This effect may contribute to encouraging speculators and investors to increase their positions in Bitcoin.
which may accelerate the pace of its rise.
Potential challenges after the recent rise
Despite the significant rise witnessed by Bitcoin, there are concerns about profit-taking after this large jump. It is normal for high-risk asset markets like Bitcoin to see a sharp rise followed by a correction or pullback. This can lead to some of the concentrated positions that were built during the rapid rise being liquidated.
and investors then begin to move into better positions based on market volatility.
Will Bitcoin Hit $100,000?
The most optimistic scenario suggests that Bitcoin could head towards $100,000 if the growing support from institutional and speculators alike continues. However, global economic and political factors may still influence this rally. The Federal Reserve’s interest rate actions, as well as geopolitical developments, may influence investors’ decisions regarding digital assets in general.
Inflation Data and Its Impact on Economic Outlook
The United States witnessed last Wednesday the release of inflation data that was in line with analysts’ expectations, which contributed to supporting bets that the Federal Reserve may decide to cut interest rates by a quarter point next month, i.e. in December 2024. This data contributed to strengthening optimism about the upcoming monetary policy.
as the interest rate cut could boost economic activity at a time when growth may be slower than usual.
At the same time, US President-elect Donald Trump’s policies related to tax cuts and protectionist trade tariffs have raised concerns about their potential impact on inflation in the future. These policies could lead to increased inflationary pressures in the long term, complicating the economic situation in light of the Federal Reserve’s attempts to curb inflation by raising interest rates earlier.
Trump’s policies and their implications for the US economy
Trump pledged to develop a regulatory framework friendly to digital currencies, a promise welcomed by the digital sector. He also indicated his intention to create a strategic reserve of Bitcoin, which could strengthen the United States’ position as a global center for digital currencies. These statements were widely supported by digital asset companies.
which had invested heavily during the election campaign to promote their interests. Despite these promises, it is still unclear how these plans will be implemented effectively, and the timeline for implementing these promises remains undefined.
Novogratz’s expectations about Bitcoin
On the other hand, the founder of a company that focuses on digital currencies expressed his opinion on the future of Bitcoin. Novogratz said that the possibility of creating a US strategic reserve of Bitcoin is a slim possibility.
but if it happens, the value of Bitcoin could rise significantly to reach $ 500,000. These statements reflect the great optimism in the digital currency.
