Bitcoin: Can Prices Reach All-Time Highs Before Year-End?

In the past month, the total value of cryptocurrencies traded on the U.S. exchange-traded fund (ETF) exchange reached $2.4 billion. This is a sign that the cryptocurrency is in a moment of great prosperity in the market, with a constant value of more than 60,000 per single Bitcoin for more than three months.

This shows how much the virtual currency, once considered risky and untrustworthy, has won over even large global speculators. In fact, U.S. investment fund Blackrock (NYSE:) has become the world’s largest holder of Bitcoin, with about $20 billion in their current digital investment portfolio. A record that surpasses that of the specialized fund Grayscale Investments.

In late September, options for BlackRock’s iShares Bitcoin Trust ETF (NASDAQ:) were approved. This is an important development for Bitcoin, as the increase in available instruments means more trading volumes that can support the price of Bitcoin in the short term

Recently, global cryptocurrency funds have continued to receive investment due to the prospect of lower and lower interest rates. Analysts predict that rates could fall below 4 percent toward the end of the year, and these two assets tend to have an advantage when central banks reduce interest rates.

The Latest US Presidential Candidates are Starting to Talk About Bitcoin

In the world of American politics, Trump is also increasingly campaigning as a supporter of cryptocurrencies. Both candidates are now more open about their potential role in society. Therefore, no matter which outcome is elected, there will be no negative impact on cryptocurrency regulation. Moreover, these political headlines are unlikely to backfire on cryptocurrencies as neither candidate sees any benefit in doing so.

There Is Good News From the UAE

There is no value-added tax (VAT) on crypto transactions in the UAE, bringing the industry in line with other traditional financial services. This will result in a significant increase in trading volumes on the platform.

There is important news from China that could lead Bitcoin to reach a new all-time high. The People’s Bank of China (PBOC) announced an infusion of about $140 billion of liquidity into the financial system, cutting the reserve requirement ratio (RRR) by 50 percent. In addition, fees on loans were reduced and regulations on real estate purchases were simplified to support the real estate market and the broader economy. These moves may have a significant impact on the value of Bitcoin and give a boost to its reaching new all-time highs

Interestingly, the PBOC’s recent announcements of stimulus packages have been followed by significant increases in risky assets, such as Bitcoin. In October 2023, the PBOC injected $367.7 billion through reverse repo transactions and in January 2024 reduced the RRR by 50 basis points, adding another $140 billion to the market. As a result, the price of Bitcoin increased by more than 100 percent. Evidence that these announcements have a direct impact on the market and suggest their importance to investors.