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The world’s largest crypto is currently trading at over $67,600 after swelling to highs not seen since the beginning of August, CoinGecko data shows.
Yet where does the asset go from here?
According to Jonathan de Wet, chief investment officer at Zerocap, Bitcoin's upward momentum remains robust, he opined in an investor note on Wednesday.
“We see [Bitcoin] at $70,000 in the coming weeks,” de Wet stated, pointing to a technical breakout providing a solid foundation for further gains.
Several tailwinds are beginning to converge, including political developments in the U.S., fueling optimism over favorable policy geared toward the crypto industry.
Republican nominee and former President Donald Trump has vowed to make the U.S. the world’s crypto capital, alongside protecting users’ right to custody their assets.
Democratic nominee and current Vice President Kamala Harris, meanwhile, has promised to create rules of the road for crypto while attempting to foster innovation.
Trump's plans to create a Bitcoin reserve could mark a turning point for crypto regulation, Andy Lian, an intergovernmental blockchain expert, told Decrypt.
“This political backing could lead to a more favorable regulatory environment, boosting investor confidence and demand,” Lian said.
Lian believes Bitcoin will reach its all-time high next week, driven by global monetary policies, including extensive rate cuts by major central banks that could boost risk assets, including crypto.
Still, questions linger over China's economic strife, de Wet said, which includes soaring local government debt, slow growth, and weak demand for goods and services.
The world’s second-largest economy has vowed to inject hundreds of billions of dollars through stimulus measures to kickstart its stock market and spur demand.
There’s also concerns surrounding geopolitical tensions in the Middle East as the region remains a dominate player in energy production and trade suppy chains.
However, traders have nothing to fear from that end if BitMex co-founder Arthur Hayes’ musings turn out to be right.
Edited by Sebastian Sinclair