On the afternoon of October 31, the bitcoin exchange rate on most exchanges briefly rose above the $14,000 level, exceeding the local high of the summer of 2019.
Previously, bitcoin was above this mark in early January 2018. The next significant resistance level is now the historical high of 2017 at $20,000.
However, for the” bulls ” on bitcoin, there is also a fly in the ointment — in the short term, the current growth looks rather uncertain. After updating the three-year high, bitcoin failed to gain a foothold above the landmark level and it “rolled back” by $13,800. Trading volumes for today are also not highlighted. The US presidential election, the results of which will be announced on November 4, is also a factor of increased volatility.
As for the long-term perspective, here the cryptocurrency remains “on the horse”. The second wave of the coronavirus pandemic is forcing central banks to continue injecting money into the economy by issuing additional fiat currencies. Whoever becomes the next US president, the Fed is likely to continue its previous policy of low rates and “throwing money out of the helicopter”. And this is a key positive signal for all reserve assets, including gold and bitcoin.
We should not forget about the main driving force of the market — the interest of institutional investors. And it remains high. Major players continue to buy bitcoin into reserves, and the most popular operator of regulated cryptocurrency funds, Grayscale, recently reported an investment of $300 million in one day on October 23 and $1 billion for the third quarter of 2020.