The digital currency market is witnessing a clear growth, and expectations indicate that the price of Bitcoin could reach $ 80,000 by the end of this year, while the Ethereum currency may reach $ 6 thousand, and on the morning of the ninth of November, Bitcoin set a record Its price crossed the $68,000 mark, and the Ethereum coin settled at $4.7 thousand.
In a report published by the Russian newspaper "Izvestia", Rosa Almkonova says that the rise in cryptocurrency prices is driven by the popularity that these digital assets have gained and the positive expectations of financial regulators, as well as high inflation rates around the world.
Given the observed rise in their prices within a month and a half, the capital of the digital currency market may range in the future between 3.5 and 3.7 trillion dollars, while it does not currently exceed 3 trillion dollars, however, analysts warn of digital currency fluctuations and unpredictable risks. out.
new Horizons
The price of Bitcoin approached 68.4 thousand dollars on the morning of the ninth of November, but it declined after that, and since the beginning of this year, the price of this digital currency has increased by about 133%, and 13% during this November.
Bitcoin’s performance was not the best in the digital currency market, as it was outperformed by other currencies that recorded a noticeable growth during this month, such as the Solana coin, whose price increased by 20%, the Binance Coin (18.4%), the Cardano coin (15.5%), and the X coin RB (13.6%).
The writer indicates that the capital of the cryptocurrency market for the first time in its history exceeded 3 trillion dollars on the eighth of this November, but it declined after that.
According to the strategist at Exante Investments, Janis Kivkolis, the development of the bitcoin price was slow between the spring and last October of this year, in light of the decline in the market’s performance, so no new records were set.
But things changed last month with the market returning to recovery after the launch of Bitcoin futures trading, and as a result, the price of Bitcoin reached 68 thousand dollars, and in the footsteps of Bitcoin, the Ethereum currency broke a record and is currently trading at a price that hovers around 4.7 thousand dollars.
The role of inflation rates
Among other factors that contributed to the growth of the cryptocurrency market, the possibility of allowing the US Securities and Exchange Commission to allow the registration of bitcoin exchange-traded funds, and statistics proved that these investment tools generate greater profits and a positive decision on them will enhance the growth of the cryptocurrency market.
Financial expert Aaron Chomsky says cryptocurrencies continue to establish themselves as a new asset class after the launch of Bitcoin futures ETFs and rising inflation expectations.
According to Chomsky, inflation rates continue to rise, especially in light of the increase in consumer prices in the United States for the first time in 13 years from 5.4% to 5.7%.
Chomsky believes that in the midst of the difficult economic situation in which various countries of the world are floundering, and taking into account a number of other indicators, including the behavioral analysis of large Bitcoin owners who do not intend to sell what they have at the moment, the digital asset market is expected to continue in growth.
Expectations and Risks
In addition to the mentioned factors, the popularization of NFT games and blockchain helps maintain the growth of the cryptocurrency market, and thanks to this strategy, the number of cryptocurrency users could rise from the current 200 million to one billion, Chomsky forecasts.
For his part, financial expert Artem Arzamasev points to regulatory issues that may prevent the rise in the value of digital currencies in light of the opposition of a number of countries to the flow of their funds to digital assets that are not under their control. Its lack of intrinsic value.
The writer advises the necessity of following the digital currency trading platforms, diversifying the investment portfolio, and focusing on reliable digital assets.