Cryptocurrency Giant Bitcoin Continues to Climb. Possibility of Reaching $95,000 by Week's End?
One of the most sizzling investments currently is a fifteen-year-old virtual currency that doesn't have a physical form.
You've got that right. Our enigmatic gentleman investor is Bitcoin (BTC 0.29%), who has maintained his top spot as the most popular cryptocurrency throughout the past decade and a half. This makes him quite the catch, especially since many investors have been jumping on the digital coin bandwagon since Election Day. As Bitcoin leads the crypto charge, it has been soaring to new heights. Could it possibly break the $95,000 barrier by the end of the weekend?
Powerful tailwinds
As we sail into the holiday season and the presidential election dust settles, cryptocurrencies are riding an unparalleled wave of support.
The election results are delivering two new residents to the White House who have openly expressed their support for the crypto industry. Vice President-elect J.D. Vance, in fact, is reportedly a Bitcoin owner, so one would hope any harsh regulations would face opposition.
This aligns well with the economic climate, which remains robust and appears to be successfully banishing the dreaded ghost of inflation. Inflation's least-loved enemy continues to weaken, with the latest consumer price index (CPI) figures showing a decrease in growth.
This decrease has led to reduced interest rates, with the Federal Reserve (Fed) reducing its key rate by a total of 75 basis points over the past two months. This marks a significant shift from the interest rate hikes the Fed implemented at the height of the coronavirus pandemic in mid-2022, which were intended to curb inflation.
Lower interest rates generally benefit riskier investments, like cryptocurrencies. This is because they make safer investments less attractive, while they increase the appeal and potential returns of riskier assets.
Room for growth
The weekend was just another fuel source for Bitcoin and the many altcoins that follow in its wake, such as Ethereum and Dogecoin.
Cryptocurrencies have an advantage over traditional investments like stocks, as they are not bound by the finance industry's traditional trading hours. So, on weekends, investors without weekday trading opportunities jump on the bandwagon. By Monday, Bitcoin had surpassed the $80,000 mark and was flirting with $90,000, setting new all-time highs along the way.
It seems entirely possible that Bitcoin will hit the $95,000 mark this week. However, no rally lasts forever, and given the recent rapid upward trend, a correction may be imminent. Yet, the bulls remain fierce, and while investors should be cautious in such a volatile market, Bitcoin could still reach a few more record highs before things stabilize.
In light of the election results and the supportive economic climate, many investors are turning to digital currencies like Bitcoin for potential high returns. Lower interest rates have made riskier investments, such as Bitcoin, more appealing, contributing to its soaring price and new all-time highs.
