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Remember the view? Over $2,8 billion bets that Bitcoin price will break the $90.000 barrier – Cryptocurrencies on the rise!

Published 11/11/2024 às 19:01
Bitcoin, Cryptocurrencies
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With over $2,8 billion invested, the price of bitcoin is expected to surpass $90.000 soon

In recent days, the price of Bitcoin has shown no signs of slowing down. The cryptocurrency, which was once the most talked about topic among investors, reached a record high, surpassing the US$81.000 mark. For those who have closely followed the world of finance in recent months, this does not seem like a surprise.

The growth is being fueled by a number of factors, from increased interest in financial results to the political climate in the United States, which has been favorable to cryptocurrencies. But what’s really driving Bitcoin’s surge?

cryptocurrency, bitcoin

US Politics and the Crypto Economy: A Powerful Combination

The US elections had a direct impact on the stock market. cryptocurrencies. A growing number of pro-crypto candidates have won public office, and this fuels expectations that the coming years will be more specific to the sector.

Amid this wave of optimism, Bitcoin wasn’t the only beneficiary. Ethereum, another big name in the market, also saw particular growth, with a 30% increase in the last seven days.

This scenario has attracted more and more investors, who are betting that the Bitcoin price could reach new heights. According to Deribit, one of the largest cryptocurrency derivatives exchanges, futures interest in Bitcoin call options has surged to over $2,8 billion.

To better understand, call options allow investors to bet that the Bitcoin price continues to rise. And what we've seen is more investors positioning themselves for even greater growth.

The impact of interest rates and the growth of derivatives

Another important factor driving Bitcoin’s growth is the monetary policy of the United States. The Federal Reserve, which is responsible for setting interest rates, recently approved its second consecutive interest rate cut.

When interest rates are low, it becomes cheaper to borrow money. This often leads to investments in riskier investments, such as Bitcoin and other cryptocurrencies, which have historically benefited from monetary easing.

This scenario was crucial for the increase in interest in derivatives, such as perpetual swaps, which allow investors to speculate on prices without defined expiration data.

These deals have become extremely popular, especially among more adventurous investors who want to bet on Bitcoin’s potential to increase in value. The result? Liquidity in cryptocurrency markets has skyrocketed, with the market value of Bitcoin spot funds now exceeding $80 billion.

The regulation and legal struggle of Exchanges

Despite the optimism, the cryptocurrency market still faces challenges. The regulatory landscape in the United States has created uncertainty, especially for companies like Coinbase and Robinhood.

Both platforms are facing pressure from the SEC (US Securities and Exchange Commission), which questions the way they operate. However, the recent political situation, with promises of a more crypto-friendly administration, generates a climate of confidence in the market.

In a post-election speech, Coinbase chief legal officer Paul Grewal said: “We are going to have the most pro-crypto Congress ever, and Coinbase played a role in that.”

Promises of a possible change in SEC leadership are also seen as a positive sign for cryptocurrency exchanges. Former President Donald Trump himself, during the election campaign, stated that he wanted to transform the US into the “crypto capital of the planet”.

These statements encouraged companies in the sector, which now have hope for a more favorable regulatory environment.

How to Invest in Bitcoin: What You Need to Know

If you’re thinking about investing in Bitcoin, it’s essential to understand what’s driving the rally. First, remember that, like any other investment, Bitcoin has its ups and downs.

While this is a time of great optimism, cryptocurrency markets can be volatile, especially as important political and economic events approach.

One of the best ways to get involved is to start small. Buy small amounts of Bitcoin if possible and keep an eye on what’s happening in the market.

If you decide to go further, there are many ways to invest through platforms like Deribit and CME, which offer futures and options contracts for those looking to speculate on prices.

Bitcoin Price — What to Expect in the Future?

Bitcoin is experiencing a phase of great growth, driven both by the political scenario and the evolution of the financial market.

Increased interest in derivatives, promises of a more crypto-friendly government, and loose monetary policy are all factors that are helping to create fertile ground for Bitcoin to reach new highs.

However, like any market, volatility is a specific characteristic. Therefore, investing in Bitcoin can be exciting, but it requires caution and a good understanding of what is happening in the world of cryptocurrencies.

So, if you are following the growth of Bitcoin or even thinking about investing, remember to always be well informed. The cryptocurrency market is dynamic and, with the political and economic changes in the United States, it can offer opportunities but also challenges.

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Fabio Lucas Carvalho

Journalist specializing in a wide range of topics, such as cars, technology, politics, shipbuilding, geopolitics, renewable energy and economics. I have been working since 2015 with prominent publications in major news portals. My degree in Information Technology Management from Faculdade de Petrolina (Facape) adds a unique technical perspective to my analyses and reports. With over 10 thousand articles published in renowned media outlets, I always seek to bring detailed information and relevant insights to the reader. For story suggestions or any questions, please contact me by email at flclucas@hotmail.com.

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