Bitcoin rose to a new all-time high on Wednesday, breaking its January record. Market experts suggest that a three-month window has opened for risky assets to thrive as a broader deal is agreed between the US and China, UNN reports citing CNBC.
Details
According to Coin Metrics data, the flagship cryptocurrency was last up 2% at $108,955.10. Earlier, it rose to $109,500.
"The new Bitcoin high was created by a number of favorable ingredients in the macroeconomic melting pot, namely: softer US inflation figures, de-escalation of the US-China trade war, and a downgrade of US sovereign debt by Moody's, which drew attention to alternative stores of value such as Bitcoin," – said Antoni Trenchev, co-founder of crypto exchange Nexo.
The price of Bitcoin has been steadily rising in May, up 16% since the beginning of the month. Total inflows into ETFs tracking the price of Bitcoin exceeded $40 billion last week, with only two days of outflows in May.
Blockchain data also shows a decrease in sellers' pressure, as evidenced by the inflow of bitcoins to exchanges, and an increase in liquidity in the cryptocurrency market, measured by new records in the number of Tether stablecoins in USDT.
According to Steven Lubka, Head of Private Clients and Family Offices at Swan Bitcoin, investors expect future catalysts, including government action and progress in the regulatory field, as well as corporate treasury investments, to lead to an increase in Bitcoin prices. According to the expert, given the current market conditions, now is the best moment for Bitcoin in the last eight years in terms of risk-reward ratio, he added.
Recall
Earlier this week, the Senate voted to advance legislation that would create the first US regulatory framework for stablecoins, a key sector of the cryptocurrency market. President Donald Trump has said he wants to see cryptocurrency regulation on his desk and ready to sign by August, before Congress goes on recess.
Also this month, Coinbase joined the S&P 500 benchmark index, which Wall Street called a turning point for the crypto industry.