Bitcoin’s values have reached a new record, flirting with the value of $69,000 while the virtual currency enjoys many tailwinds.
Around 9:15 a. m. EST, the virtual currency rose to $68,990. 90, according to coinDesk data.
After reaching that level, it had risen nearly 140% this year, more figures from CoinDesk reveal.
After earning $69,000, the cryptocurrency declined, albeit slightly, without falling below $68,000.
After this modest decline, it recovered, trading at $68,600 at the time of writing.
[Editor’s note: Investing in cryptocurrencies or tokens is highly speculative and the market is largely unregulated. Anyone contemplating this will be willing to lose their entire investment. ]
For those recent maximum gains, market analysts have cited several developments, ranging from the anticipation surrounding Taproot’s upcoming update to the most recent inflation figures and how they might portend increased interest in bitcoin.
“A number of points continue to serve as structural winds for Bitcoin’s value,” said Kay Khemani, executive leader of Spectre. ai.
“These come with ongoing ETF approvals, which at the moment are limited to the U. S. only. USA; Greater clarity on a unified and coordinated regulatory reform, which can simply govern virtual assets, thus integrating them into the existing monetary fabric; and finally, root updates that give Bitcoin a functional app within the developer community, which worries all Bitcoin bears.
Other analysts talked about the Taproot update, and Armando Aguilar, vice president of virtual asset strategy at Fundstrat Global Advisors, described it as “Bitcoin’s biggest upgrade in 4 years. “
“Taproot will offer greater confidentiality of transactions as well as greater efficiency,” he said.
“But the biggest improvement will be that it will unlock the possibility of contracts. “
“Investors have a positive opinion about the most recent update, pushing the virtual asset towards a new ATH in addition to macroeconomic factors,” Aguilar said.
Marc Bernegger, a board member of Crypto Finance Group, also weighed in on this issue.
“The main root update will have a very extensive effect on the long-term expansion and use of Bitcoin and, in particular, will increase the adoption rate,” he said.
“In fact, it also has an effect on the demand and value of Bitcoin. “
Petr Kozyakov, co-founder and CEO of the global payments network Mercuryo, also spoke about the upcoming update, but about the importance of development separately.
“Bitcoin just climbed to the all-time high (ATH) just above $68,700 as anticipation and buildup around Bitcoin’s Taproot update, which is expected to take hold in a few days, skyrockets,” he said.
“While the Taproot update marks a major shift in the way the Bitcoin network will operate, especially in terms of transaction fees and intelligent contract integration, the main driving force of the existing execution is a basic total. “
He then talked about the U. S. inflation figures. The U. S. Food and Drug Service was published and showed that the customer value index for all urban customers has increased by 6. 2% over the following year.
“The inflationary trend is evident and continues its upward momentum,” Kozyakov said.
“Investors are exploring the features offered by cryptocurrencies, especially Bitcoin, as a viable hedge against inflation,” he said.
“Inflation is attracting greater elegance from investors more than the Taproot update and is expected to drive a continued buildup in BTC at least until the end of this year. “
Bernegger talked about those more recent figures.
“The publication of the high rate of inflation in the United States today is one more cause of the increase in Bitcoin prices,” he said.
“More and more investors are worried about a permanent and peak inflation cycle and are looking for tactics to hold their assets. “
Disclosure: I bitcoin, bitcoin cash, litecoin, ether, EOS and soil.