06.12.2024 15:11
According to a report by banking giant Citi, Bitcoin reached its highest value in history due to the favorable market conditions following the U.S. elections and the nomination of Paul Atkins for the SEC chairmanship. These developments further invigorated the crypto markets and attracted the interest of investors.
Bitcoin reached an all-time high of $100,000, surpassing the psychological barrier, following the nomination of Paul Atkins as SEC chairman. Citi's recent report revealed that the positive sentiment in the crypto markets after the U.S. elections and the expanding flow of exchange-traded funds played a significant role in this rise.
Cryptocurrency Markets Continue to Grow Under the Influence of U.S. Elections
Citi, one of the leading financial institutions in the U.S., announced in its latest research report that Bitcoin broke the $100,000 level at the beginning of this week, setting a new historical record. The report indicated that the most important driving force behind this record rise was the favorable market conditions that emerged after the U.S. elections.
One of the developments that excited the cryptocurrency world was the nomination of Paul Atkins, known for his crypto-friendly identity, for the SEC chairmanship. This nomination created a positive atmosphere in the markets, playing a significant role in Bitcoin surpassing the psychological threshold of $100,000.
According to Citi's assessment, this upward trend in Bitcoin is not dependent on a single factor. Increasing interest in cryptocurrency markets, strong capital inflow into ETFs, and the widespread acceptance of digital assets are among the other factors supporting the price increase. The resilience shown by the economy and improvements in macroeconomic conditions have also positively impacted the digital asset market.
Another noteworthy point in the report was the observed decrease in Bitcoin's market dominance. With the regulatory framework becoming more flexible, it was emphasized that alternative digital assets have the potential to gain value. However, Citi noted that it did not observe a significant increase in on-chain transactions of cryptocurrencies.
Citi predicts that the long-term value of a network will depend on fundamental factors such as usage frequency, macroeconomic connections, and production costs. The bank assessed that the improvement in the regulatory environment will expand the use cases of blockchain-based assets and anticipates that positive developments in cryptocurrency policies will grow the sector. The report also mentions that assets classified as commodities, like Bitcoin, which have both spot and futures ETFs, may have more limited return potential compared to other cryptocurrencies.