Bitcoin Makes History

Bitcoin showed on Sunday why it was once hyped as the currency of the future. On the U.S. market, it shot up to $125,245.57 as a day earlier by 2.7 percent, AFP reported.

In mid-August this year, bitcoin had last approached its record high of $124 480 following news that the administration of US President Donald Trump favoured loosening financial regulation to encourage industry growth and there was increasing demand from institutional buyers.

Last friday was the eighth day in a row Bitcoin’s price rose. Analysts say the surge can be attributed to growth in the U.S. stock and heightened flows into Bitcoin Exchange-Traded Funds (ETFs). The U.S. dollar, meanwhile, dropped sharply to a new recent low against major currencies. Market confusion also rose with the potential of a U.S. government shutdown and delays in data that investors consider useful for macroeconomic views.

And even as investors are wary, Bitcoin’s thrust higher persists after all with a stock market going up. And as investors look for safer places to tuck their money, U.S. lawmakers are still haggling over government funding, Bloomberg has reported.

U.S. President Donald Trump and his family have been described as crypto fans, with an investment in several cryptocurrency-based companies that has increased Trump’s net worth.?

The U.S. government’s position on cryptocurrencies has been changing a lot during the Trump era. The previous Biden administration had a more skeptical view of the crypto industry. But in July the U.S. House of Representatives passed three significant crypto bills, and Bitcoin’s value went through a steep rise as a result.

FalconX Co-Head Of Markets Joshua Lim estimated that those shorts could be targeting 180, reported Bloomberg:

“When stocks, gold and even things like Pokémon cards are hitting record highs, it’s perfectly normal to see Bitcoin rise as well. The trend has been driven by fears of the devaluation of the dollar.”