Bitcoin price has reached its highest level since August

Last weekend, the bitcoin rate reached its highest level since August, exceeding $30 thousand. This was facilitated by a number of factors: fictitious news about the approval of a bitcoin ETF in the United States, the real refusal of the SEC to claim against Ripple, geopolitics. Analysts expect Bitcoin to grow to $70 thousand in 2024.

According to Coinmarketcap, on October 21–22, the leading cryptocurrencies updated their local highs: the Bitcoin rate exceeded $30 thousand for the first time since the beginning of August, and the price of Ether exceeded $1.6 thousand. As of 16:26 on Sunday, October 22, Bitcoin dropped slightly to $29. 9 thousand, and ether was fixed at $1.6 thousand. Other cryptocurrencies are also growing – BNB, XRP.

According to experts interviewed by Kommersant, the bitcoin rate rose by more than 10% amid false news about the approval of spot bitcoin ETFs in the United States. After the information was refuted, the cryptocurrency fell in price, its price fell to its previous levels of about $28 thousand, noted BitRiver financial analyst Vladislav Antonov. The entire industry is looking forward to the approval of the first Bitcoin ETF, since this event opens a window into the world of cryptocurrencies for institutional investors, explained Mikhail Uspensky, a member of the expert council on legislative regulation of cryptocurrencies in the State Duma. With the influx of liquidity from large institutional investors, the crypto industry should pick up significantly, he added.

Also among the main drivers of the growth of the last weekend is the SEC’s (US Securities and Exchange Commission) refusal of claims against Ripple, noted Roman Kaufman, co-founder of Berezka DAO and Weezi. This news immediately affected the growth of XRP, which soared by 7%. For the global community, the victory of any crypto company over the SEC is a positive trend that gives more confidence in the development of the entire cryptocurrency industry, Mr. Kaufman believes.

Jerome Powell’s speech last week also gave impetus to trading, in which he said that inflation risks in the United States remain, and the Fed will make every effort (that is, continue to raise the key rate) until it drops to the target level of 2%, the founder believes Cross Finance Alexander Mamasidikov. These words, according to Mr. Mamasidikov, increased investors’ concerns about high inflation and pushed them to look for alternative ways to hedge risks. “Bitcoin due to its volatility and the expectation of a new “bullish” cycle in 2024 against the backdrop of halving (a decrease in the reward of Bitcoin miners for the mined block.— “Kommersant”) is seen by many investors as an asset worthy of inclusion in an investment portfolio and capable of helping preserve its value in conditions of high inflation,” he noted.

Finally, the local strengthening of the cryptocurrency rate is also due to the increase in military and geopolitical escalation in the world, says independent financial analyst Andrei Barkhota. “We should not forget that one of the most common ways to finance one of the warring parties, bypassing sanctions and other restrictions, is cryptocurrency transactions. With the growing demand for anonymized money surrogates, mining capacity is not able to increase overnight – there is a noticeable increase in the exchange rate,” he added.

At the same time, the head of InDeFi Smart Bank, Sergei Mendeleev, believes that crypto has not been considered as a defensive asset for several years; on the contrary, growth has been observed along with high-risk investments. A rollback to $28.5 thousand as part of a local correction is not excluded, says Vladislav Antonov. In mid-autumn, according to him, the optimistic mood of investors provides significant support for the growth of market capitalization. “Until the end of October, there are no obstacles to the continued growth of Bitcoin above the $30 thousand mark,” he added. Everyone is waiting for the start of moderate growth ahead of the 2024 halving, says Alexander Mamasidikov.

By the end of the year, according to his forecasts, Bitcoin could grow and consolidate at $45 thousand, and in 2024, after the spring halving, by autumn or winter Bitcoin could update the previous historical maximum price, exceeding $70 thousand. However, Roman Kaufman warns that the risk of market uncertainty and the influence of major players is always there. “Investors should be warned that the cryptocurrency market is mostly a casino, so you need to be very careful and balanced in your investment,” he concluded.

Ksenia Kulikova