The bitcoin exchange rate reached another historical high the day before, exceeding $106 thousand. As of 9:42 a.m. on Monday, bitcoin rose by 1.9% to $105.11 thousand, according to Coindesk. On Sunday, the cryptocurrency rose to $106,491 thousand. Bitcoin’s growth has been going on for seven weeks in a row, the highest since 2021. The rate is supported by expectations of a favorable cryptocurrency policy under the Donald Trump administration. According to FactSet, since his election as US president, bitcoin ETFs have raised $9.3 billion. The next key level for this cryptocurrency is $110 thousand, MarketWatch reports.
The bitcoin exchange rate rose above $81 thousand for the first time on Sunday and continues to grow after Donald Trump’s victory in the US presidential election, MarketWatch reports.
Traders hope that Trump will ease regulations on cryptocurrencies, as he has publicly spoken in support of the development of this sector.
Bitcoin rose by 2.8% to $81,241 thousand during trading on Monday, according to Coindesk. Over the past week, the world’s most popular cryptocurrency has risen by 14%, with the increase over the past month exceeding 25%. Its rate has more than doubled in a year.
In addition to the victory of their candidate in the presidential election, the Republicans are approaching full control of Congress, the Financial Times notes.
Although the final result of the House of Representatives elections has not yet been confirmed, the Republicans are on the verge of taking control, which “will allow the new administration to implement supportive policies for digital assets shortly after Trump takes office,” according to Standard Chartered analysts.
“We expect positive changes early on in the administration,” including ‘changes at the Securities and Exchange Commission that will lead to a more lenient regulatory stance on digital assets,’ said Jeff Kendrick, head of digital asset research at Standard Chartered.
“Bitcoin, one of the riskiest assets, is experiencing a surge in popularity,” said Eswar Prasad, professor of economics at Cornell University. – “Regulatory clouds are dissipating. Financial conditions are becoming looser, and the macroeconomic outlook for the US continues to look bright.”
“America is going to go down the road to economic freedom,” said Brian Armstrong, CEO of Coinbase Global.
Ethereum, the second most popular cryptocurrency in the world, has risen by almost 20% over the past month and by 52% over the year. At the same time, it fell by 0.9% to $3,149 thousand during trading on Monday, according to Kraken.
The bitcoin exchange rate is falling sharply on Monday amid a global sell-off in risky assets.
Bitcoin fell by 10.8% to $52,827 thousand by 12:25 Kyiv time, according to CoinDesk. Over the past five sessions, the cryptocurrency has lost more than 21% of its value, although it has added almost 26% since the beginning of the year.
The Ether exchange rate fell by 15.3% to $2,330. This is a record drop since 2021.
The Japanese stock index fell by 12.4% on Monday, the fastest pace since October 1987, and futures on the US stock index Nasdaq Composite are down 4.2%.
The collapse of risky assets is caused by growing fears of a recession in the United States after weak statistics released last week. Goldman Sachs analysts now believe that the probability of a recession in the US economy in the next year is 25% instead of the previously expected 15%, and markets see a 60% chance that the Federal Reserve will hold an extraordinary meeting this week and cut its key interest rate by 25 basis points.
“The market is in a panic mode,” said Grace Chen, head of the Bitget cryptocurrency exchange.
The bitcoin exchange rate is falling on Friday, trading near the lows since the end of February on fears that the Federal Reserve is not yet ready to start cutting interest rates, CNBC reports.
By 11:03 a.m., bitcoin is down 6.7% to $54,359 thousand, according to CoinDesk. Over the past month, the cryptocurrency has lost almost 23% of its value, although it has added about 30% since the beginning of the year.
Earlier, the minutes of the meeting of the Federal Open Market Committee (FOMC) held on June 11-12 were published. The Fed’s executives need further evidence of slowing inflation to begin easing monetary policy, according to the document.
High interest rates are considered a negative factor for bitcoin, as they reduce demand for risky assets, CNBC notes.
In addition, the German authorities on Thursday sold about 3 thousand bitcoins worth about $175 million, according to the analytical company Arkham Intelligence. The authorities still own about 40 thousand bitcoins confiscated in various criminal cases.
The bitcoin rate rose above $35 thousand on Tuesday for the first time since May last year.
As of 18:15, it gained 9% and amounted to $34.362 thousand. During the session, the rate reached $35.142 thousand.
The rise in the value of bitcoin is driven by growing investor expectations that the United States will soon approve the creation of exchange-traded funds (ETFs) for direct investment in cryptocurrencies, Market Watch reports.
In the past, the US Securities and Exchange Commission (SEC) has repeatedly rejected applications from investment companies to launch such ETFs, arguing that there are high risks of market price manipulation. However, cryptocurrency industry experts believe that the situation will soon change.
On Monday, the U.S. Court of Appeals ruled that its August decision, which overturned the SEC’s earlier ban on the conversion of the Grayscale Investments cryptocurrency trust into a spot bitcoin ETF, should come into force.
Experts note that the emergence of such products on the market will facilitate the wider adoption of bitcoin.
If bitcoin ETFs are approved, we may see a “historic jump in the value of the cryptocurrency” and a market shift to a bullish trend, says Alex Adelman, CEO and co-founder of Lolli.
BlackRock Inc. and Fidelity Investments are among the companies ready to offer similar products.
This tool “will give institutional and retail investors new ways to grow their bitcoin investments within the current regulatory framework”, Adelman says.
The stock prices of cryptocurrency companies Coinbase Global Inc., MicroStrategy Inc., Riot Platforms Inc. and Marathon Digital Holdings Inc. are up 13%, 14.8%, 14.5% and 17.5%, respectively.
Bitcoin is losing more than 4% in trading on Friday amid a general investor withdrawal from risky assets amid traders’ concerns that global central bank rates will be held at higher-than-expected levels for longer than expected.
Bitcoin’s exchange rate fell 4.1 percent to $26474, according to Kraken data as of 12:55 p.m. Q4.
The cryptocurrency, which traded around $29,000 the day before, began to fall sharply in price amid rising US Treasuries yields, which reduced the attractiveness of investing in high-risk assets.
This triggered a massive liquidation of bitcoin positions on cryptocurrency exchanges. The bitcoin exchange rate fell by more than $2,000 within minutes during trading on Thursday, from $28400 to less than $26,000, Market Watch noted.
The volume of bitcoin positions closed in the past 24 hours exceeded $1 billion, according to Coinglass.
Experts note that the sharp drop in the cryptocurrency’s rate coincided with the release of an article in The Wall Street Journal about the sale of bitcoins by Elon Musk’s company SpaceX. The article stated that SpaceX wrote down the value of the $373 million worth of bitcoins it owned in 2021 and 2022 and sold the cryptocurrency. WSJ did not specify exactly when SpaceX sold the bitcoins.
