New Bitcoin Record High Could Be Just the Starting Point

Just one day after the US election was decided in favor of Trump, Bitcoin (BTC) has hit a new record high of $76,943 (BTC/USD), and it could go even higher soon.

Ever since Bitcoin set a new record in March of this year, analysts were expecting the coin to set further records as the year progressed. But high inflation and economic uncertainty made that difficult. Even the Bitcoin halving did not have the effect that many investors expected, and Bitcoin did not approach a record high again for months.

It was only after the US election results started to come in that Bitcoin maintained a record high, and then again on Thursday night, Bitcoin managed yet another record high. For the coin to be able to hit two new records in a short period of time denotes powerful potential for a further upward trend. We could be seeing the beginning of a new and higher support level for the cryptocurrency token.

The new record high occurred on the same day that Blackrock ETFs saw massive inflows. Blackrock is the largest asset manager in the world, and they were expecting impressive inflows from ETF purchases following the new high from Bitcoin a few days ago. However, the numbers on Thursday still surprised them, with Bitcoin ETFs performing far better than expected.

Bitcoin’s Future

We have to be careful about predicting too much from Bitcoin too soon, because we could end up with a similar situation to what we saw with the crypto market after the record highs in March of this year. At that time, there was a lot of investment into the market because anticipation was high that the new record high would be repeated, but that did not happen. It left the market deflated and caused a mass exodus from cryptocurrency for months that made it difficult for coins to regain their previous highs.

The situation right now is that Bitcoin and the wider crypto market are thriving, and it appears that they will continue to do so over the short term. Now, the long-term analysis is much harder to foretell, but there are a few promising factors to be aware of.

First of all is the fact that Trump will be officially sworn in as president on January 20th. We will likely see another surge at that point, and then we may see Bitcoin move much higher afterwards, once Trump starts to put in place some of the crypto supporting ideas he has talked about during his campaign.

Secondly, a new Fed interest rate cut just occurred, resulting in a quarter point, reduction or 25 basis points. This was exactly what was expected, and it should help spur Bitcoin to further growth, as the last cut did. There is another cut expected to come in the next few months.

Thirdly, much of the economic tradition that has gripped the market in recent months has been dispelled. Many businesses and investors anticipate that Trump will create an economic boom in the short term at least, leading to more assets being freed up for investing in decentralized currency. Bitcoin could have a very bright future ahead, and the current sky-high prices could be the beginnings of a new support level.