The world’s most famous cryptocurrency Bitcoin has returned to the spotlight, after recording big jumps in recent days, to touch its highest level in nearly five months, supported by the flight of capital from stock markets, in light of the prevailing concern that financial markets will be affected by a global inflation wave.
Bitcoin traded at just over $57,000 during trading on Tuesday, according to Reuters, recording its highest level since last May, amid expectations of a price boom over the next few days, as the cryptocurrency community awaits the position of the Securities and Exchange Commission. In the United States, ETFs track Bitcoin.
The cryptocurrency community is awaiting the position of the US Securities and Exchange Commission on the establishment of ETFs that track Bitcoin
During this October, the US body must take a decision to accept, reject or postpone a group of requests to establish these funds.
The market value of the currency amounted to 1.084 trillion dollars, with a total of 18.841 million units in circulation out of a total of 21 million units offered for trading. Bitcoin gained 14.94% in the last week to yesterday.
Virtual currencies do not have a serial number and are not under the control of governments and central banks, like traditional currencies, but are dealt with only over the Internet, without a physical presence of it.
Bitcoin has been on the rise since US Federal Reserve Chairman Jerome Powell testified before Congress two weeks ago, when he denied the central bank’s intention to ban cryptocurrencies.
Vijay Ayyar, head of the Asia Pacific region at Singapore-based cryptocurrency exchange Bono, told Bloomberg that record highs for Bitcoin are possible, possibly as high as $80,000 to $85,000 depending on its recent rise patterns. .
Bitcoin is benefiting from the fears of investors in various markets from the repercussions of the global inflation wave, as the global price crisis has threatened stock markets due to the high production costs in companies and the inability of many consumers to keep pace with the increase in prices, which prompts them to reduce purchase rates and change consumption patterns, which enters The world is in an inflationary recession that turns the situation around.
Bloomberg Economics expects that the global economic growth due to the energy and supply chain crises will receive the heaviest blow since the country was completely closed due to the outbreak of the Corona pandemic for the first time.
In a note addressed to the US bank, JPMorgan Chase & Co., to its clients, earlier this October, he said: “In the stagflation portfolio, the weight of commodities must be increased, the weight of stocks should be neutralized, and the weight of bonds should be reduced.”
Meanwhile, cryptocurrency proponents are bolstering hopes that Bitcoin and its siblings will benefit greatly from the status quo, as well as the direction of US policy makers to reconcile cryptocurrencies and allow their own index funds.