Bitcoin poised to hit new high this month

The price of Bitcoin has a chance to hit a new record high this month, supported by the expectation of more US policy rate reductions and a Donald Trump victory in the US presidential election this week, according to digital asset fund manager Merkle Capital.
Bitcoin tallied US$73,600 last month, an increase of more than 25% from the previous year, to hit a new record as investors expect the US Federal Reserve to make two more policy rate cuts in November and December.
Moreover, some pundits anticipate the Republican Party winning the US election.
“Bitcoin and all cryptocurrencies, especially those in the Ethereum ecosystem, are likely to grow significantly this month,” said Woramet Chansen, investment advisor at Merkle Capital.
“The main reasons are the US presidential election, which affects the investment picture until 2028.”
The US election has both direct and indirect impacts on investment in digital assets because of the policies of both parties on these assets, he said, especially the Republicans and Trump, who has stated public support for the crypto market.
The odds of Trump, a former president, winning caused Bitcoin prices to adjust to test the all-time high, said Mr Woramet.
Although the market priced this in for the short term, this factor would be positive for the next four years, he said.
Merkle reported Bitcoin investment increased by more than $2.8 billion last month from institutional investors, attributed to their risk acceptance and confidence in crypto.
“If events happen as investors hope, there is a chance the crypto market will attract institutional investors to invest more in the future,” said Mr Woramet.
According to Farside.co.uk, the Ethereum price has risen 13% this month, while the Ethereum spot exchange-traded fund has soared by more than 30%, mostly driven by institutional investors.
This indicates the increasing confidence of institutional investors and is an opportunity for the Ethereum ecosystem to grow in the short term and long term, noted the site.
Mana Khanijou, chief commercial officer at Merkle Capital, said digital asset investment remains positive for the final quarter this year.
“Bitcoin prices increased in October and November. For the last two months of the year, they will continue to increase,” said Mr Mana.
The US election and interest rate downtrend are economic factors to monitor, he said.
“During this period, investors may have FOMO [fear of missing out], which triggers buying,” said Mr Mana.
“Plan your finances well and be careful of market profit-taking.”