Three reasons that led Bitcoin (BTC) to historical maxims – and one to keep an eye now

THE Bitcoin (BTC) renewed the historical maxims while it was dawn in Brazil And it maintains a bunch in the early hours of Friday morning (11).

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At about 10:20 am, the world’s largest cryptocurrency operated 6.03%, quoted to $ 117,673.63. In accumulated of the year, the price of Bitcoin jumps 25.96%.

Beyond global optimism with digital assets, with the institutional adoption of the tokenization and the fusion between the virtual universe with real -world actives through the Real World Assets (RwasIn the acronym), Bitcoin himself became the protagonist of this story.

Here are three factors that boosted prices in recent days:

1 – Macroeconomics favorable to bitcoin (BTC)

According to Valter Rebeloanalyst of cryptocurrency From Empiricus, the indicators that measure economic activity in the United States point to a resilience of the US economy.

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In a report published on the night of last Thursday (10), Rebelo explains that the Payroll (The most important US Employment Report) Above expected and the falling unemployment rate reinforces the resilience of the labor market in the country.

In addition, the ISM Services PMIservice industry indicator showed the expansion of activity in June. “It is worth remembering that the service sector represents approximately ⅔ of the US GDP, which gives even more relevance to the result,” he comments.

Added to this, the bets of cuts of fees In September they are firm, supporting the monetary relief scenario in the country.

Thus, the perspective that economic activity remains strong with a stimulus by cutting interest rates tends to positively influence Bitcoin prices.

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• See more: What are the minds behind large companies and great managers thinking? Find out on the Money Times Money Minds program; See here

2 – US regulatory advancement

Next week, three bills should be voted in the United States: the Genius Actthe Clarity Act and the Anti-CBDC Act.

The first of these is the bill that establishes rules for the stablecoinsCryptocurrencies with American dollar ballast. The proposal aims to ensure more security and transparency for local broadcasters, and leave them outside the coverage of the SECa CVM from the US.

The text goes to the House and, following, for the approval of the president of the United States, Donald Trump.

Already the Clarity Act deals with the regulation of the crypto market as a whole, proposing the differentiation between commodities digital (such as bitcoin, which is considered virtual gold) and active investment contracts. The project also delimits the performance of SEC and CFTCgiving more security to broadcasters and developers.

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Lastly, the project Anti-CBDC (ie, against digital currencies emitted by Central Bank, or Central Bank Digital Currencies) that prohibits the Federal Reserve (Fed, the US BC) to issue a virtual version of the US dollar.

In the sector’s view, a CBDC would give excessive government control over citizens’ financial privacy.

3 – Massive contributions of Bitcoin ETF (BTC)

Finally, the appetite of investors for products related to cryptocurrencies, such as index funds traded on the stock market (ETFSin the acronym in English) also drive the quotations.

Remember that these products spot (in cash) need to keep BTCs in reserve to be launched in the market. In other words, the growth of these ETFs also increases the purchase of Bitcoin from managers.

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Only last Thursday (10), the BTC ETFs spot registered net inputs of US $ 1.18 billionaccumulating uS $ 143.86 billion in assets under management in the United States.

In general lines, backgrounds and products related to cryptocurrencies have also attracted investors, maintaining the pace of purchases of large investors.

Until last week, according to the survey of Coinsharesthis type of product already accumulates 12 consecutive weeks of liquid inputs.

But not everything is flowers …

Remember that the cryptocurrency market is highly volatile and the investor must maintain a responsible portion of his investments in digital assets.

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In addition, analysts in this market have seen increasingly dependent on institutional investors for market dependence.

Despite billionaire contributions, this dependence can create a correlation of the cryptocurrency market with traditional assets.

In other words, a worsening of macroeconomic sentiment can affect the quotations of a sector that was born to be allegedly discoring from traditional finances.