The price of Bitcoin in the U.S. has surged to record levels, coinciding with regulatory changes and increased institutional investor interest.
Reasons for Bitcoin's Rise
On Monday, Bitcoin's price exceeded $123,000, marking a 75% increase from last November. This rise is supported by improved market sentiment, clearer regulatory frameworks, and a greater share of institutional investors.
Decrease in Bitcoin's Volatility
According to Marion Laboure from Deutsche Bank, the significant price acceleration of Bitcoin coincided with an unusually low volatility level. Laboure noted that this change is characteristic of a new behavior of Bitcoin in the market, indicating a shift towards a more stable condition. However, complete disappearance of volatility has not occurred, calling for caution in predictions.
Future of Bitcoin and Its Market Influence
While current conditions indicate Bitcoin's registration in investment portfolios, experts maintain caution regarding long-term forecasts. Regulatory measures and institutional interest may shape the future market dynamics, but global economic and political factors remain crucial for price stability.
The decrease in Bitcoin's volatility alongside its record rise highlights the effects of regulatory changes and institutional interest. Nevertheless, uncertainties in the market continue to raise concerns. Deutsche Bank's plans to offer custodial services for Bitcoin and other cryptocurrencies may influence future market equilibrium.
