Bitcoin, the world’s largest cryptocurrency, is experiencing a surge in optimism, with bulls targeting a return to the record highs reached in March, Bloomberg reports.
This resurgence comes amidst a confluence of factors, including growing risk appetite in global markets and the upcoming US elections.
“After six months of price consolidation this year, the stage is set for a perfect storm in favor of Bitcoin and other crypto assets,” Blockforce Capital’s Brett Munster said.
He attributed this bullish sentiment to a rise in global liquidity, particularly from China, which has been aggressively injecting stimulus into its struggling economy.
“Global liquidity is on the rise again, with central banks across the world injecting cheap capital into their economies,” Munster wrote. “When global liquidity has exceeded its moving average in the past, it has often coincided with significant upward movements in the price of Bitcoin.”
Further bolstering optimism is a recent statement from Vice President Kamala Harris, who pledged to support a regulatory framework for cryptocurrencies. This statement marks a significant shift from previous US administration stances, which have been characterized by a lack of clarity and a preference for regulation through enforcement.
The crypto sector has long voiced frustration over this approach, and the Vice President’s commitment to a more structured regulatory environment has been welcomed by many.
Adding fuel to the fire, former US President Donald Trump, a known proponent of cryptocurrencies, has been actively courting crypto voters in the current presidential race. Trump’s ongoing involvement in various crypto-related ventures further reinforces the perception that cryptocurrencies are gaining mainstream acceptance.
On Wednesday, Bitcoin saw a surge, reaching $68,376 before paring gains. The cryptocurrency last traded at $70,000 in July and hit an all-time high of nearly $74,000 in March. With the winds of optimism at their backs, Bitcoin bulls are firmly set on reclaiming those lofty peaks.
