The cryptocurrency Bitcoin continues its record rally: its price rose on Tuesday morning and, after a short consolidation phase, is approaching a record high of $ 107,821 reached on Monday evening.
On the trading platform Bitstamp, the oldest and best-known cryptocurrency cost $107,300 (102,210 euros) on Tuesday morning, significantly more than on Tuesday evening, when the price fell to $105,500 after reaching a record high of $107,821 on Monday.
Bitcoin has been on an uptrend for almost two years, with its price rising from under $20,000 to a six-figure high. The latest driver of the rally is the election of Donald Trump as the new American president in early November. Since then the price has risen by about half. Trump is now considered a supporter of cryptocurrencies.
Bitcoin Strategic Reserves
“The prospect of the introduction of strategic Bitcoin reserves in particular is grist to the mill of investors,” wrote market analyst Timo Emden of Emden Research. Trump will likely keep investors happy with his promises until he moves into the White House. But this can also increase the chance of disappointment. Investors should remember that all plans are not set in stone.
Moreover, expectations of further interest rate cuts by major central banks support Bitcoin. The US Federal Reserve will publish its interest rate decision on Wednesday evening. A further reduction of 0.25 percentage points is expected. This is good news for investments that are considered risky, such as cryptocurrencies, as it reduces the attractiveness of fixed income investments.
Prospect of further acquisitions
Bitcoin is currently getting a boost from the prospect of further purchases of the cryptocurrency by US software company MicroStrategy. Company boss and co-founder Michael Saylor is considered a hardcore Bitcoiner and wants to transform his company into a Bitcoin company.
MicroStrategy’s strategy appears to be working, at least for now, as evidenced by the company’s inclusion in the tech-heavy Nasdaq 100 US stock index as of December 23 this year. This move reflects Bitcoin’s triumph, Emden continued.
According to a listing from provider Coinmarketcap.com, Bitcoin’s market value currently stands at just over $2.1 trillion. That’s almost 57 percent of the total $3.75 trillion market cap of all just over 10,000 cryptocurrencies.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
