Bitcoin has just hit a new record high, reaching $75,000 as the market continues to price in a Donald Trump victory in the US elections.
The asset is now in price discovery, and the momentum from this could continue to push the price higher, meaning bitcoin could potentially reach six figures within a few months. Volatility will certainly stay high for crypto assets over the next week, especially with the Federal Reserve meeting later this week.
Institutional appetite for bitcoin is also growing at a time when interest rates are set to fall sharply and risk assets are gaining more traction. Monthly inflows to bitcoin ETFs are picking up significantly, with over $5 billion in net flow in October. “This record high could also be the driver that brings retail interest back to the ‘euphoria’ levels we’ve seen in previous cycles, that the asset class hasn’t quite experienced this year,” said Josh Gilbert, Market Analyst at eToro.
He continued, “Although bitcoin is sitting at record highs, it really feels like this rally could just be getting started. This bull market has a lot of weight behind it, and that could keep driving the asset higher.”
