Bitcoin continues its surge and sets a new record

Bitcoin continued its crazy surge on Monday, the best-known electronic currency having crossed the threshold of $106,000 per unit, a new record. The cryptocurrency, still boosted by the projects expected from the future administration of US President-elect Donald Trump, also benefited from investors’ expectations of a rate cut from the Federal Reserve (Fed).

During the night from Sunday to Monday, bitcoin set a new record at $106,533 on the bitstamp trading platform. Around 7:45 a.m. Monday, it was still worth $105,229.

In the space of a month, the electronic currency with the largest capitalization jumped by 17.26%, while over a year its value has now more than doubled (+151.15%).

“Fantasy of rate cuts”

Investors hope that the US Central Bank will not only cut rates on Wednesday, but will continue its cycle of rate cuts in 2025. Last Thursday, the European Central Bank also lowered interest rates in the zone euro, just like the Swiss National Bank (SNB), the Swiss issuing institute however creating a surprise with a reduction in its key rate by 50 basis points to 0.5%.

“The fantasies of lower interest rates on both sides of the Atlantic continue to work in favor of cryptocurrencies,” observes Timo Emden of Emden Research. In addition to confidence in an overall decline in interest rates in the capital market, investors are eagerly awaiting the arrival of US President-elect Donald Trump at the White House.

The decisive catalyst for continued risk appetite remains the prospect of Mr. Trump’s return to the White House and the resulting hope for a crypto-friendly Washington as well as a new regulatory era in the world’s largest economy. The possible establishment of strategic bitcoin reserves should bring the last investors out of their reserves. Before the US president-elect moves into the White House, market participants could now seize one of the last opportunities to position themselves.

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