Can Bitcoin Reach an All-Time High of 80K? Key Factors Analysis

- Bitcoin Price Reaches $73,500 - Influence of Spot Investment Funds and Monetary Easing Policies [Unblock Media] Currently, the price of Bitcoin (BTC) has reached $73,500, just $300 shy of its all-time high of $73,798 recorded earlier this year. This price increase is the result of multiple factors interacting. First, on January 10 this year, U.S. regulatory authorities approved a spot-based Bitcoin investment fund (ETF). A spot ETF holds and trades actual Bitcoin, garnering higher trust among investors. This has significantly increased liquidity in the Bitcoin market, provided investors with a sense of stability, and boosted demand. Second, the monetary easing policies of major economic zones have driven Bitcoin's price rise. In 2024, key Western central banks resumed rate cuts and quantitative easing programs, injecting funds into the market. Such monetary easing increases global economic liquidity and makes assets like Bitcoin relatively more attractive as investments in an environment where the dollar's value is decreasing due to rate cuts. Consequently, investment demand for Bitcoin has risen. Third, large-scale fiscal and monetary stimulus measures in China have also contributed to Bitcoin's price increase. The Chinese government is injecting significant funds to stimulate economic growth. The People's Bank of China has supplied substantial liquidity to the market, impacting not only domestic demand for Bitcoin but also the global Bitcoin market. This influx of funds is flowing more into high-risk assets like Bitcoin, and investors are using this capital to purchase Bitcoin. Moreover, the potential reelection of Donald Trump is raising expectations in the cryptocurrency market. Trump has proposed tax cuts for cryptocurrency trading, which would provide more incentives for investors to enter the cryptocurrency market, thereby promoting a rise in Bitcoin prices. In recent months, the selling pressure from miners and long-term holders has eased, allowing Bitcoin to resume an upward trend. Following the introduction of the spot ETF, Bitcoin balances on exchanges have decreased, and long-term holding has increased. As a result, Bitcoin has reached a yearly high of $73,500, marking approximately a 75% increase compared to earlier this year. This suggests that Bitcoin market volatility could continue depending on external economic factors and policy changes. Although Bitcoin prices fell below $50,000 during the summer, strong demand recovery has driven prices back up. This signifies that the Bitcoin market is entering a new cycle, and further price increases are expected. Looking ahead, the Bitcoin market is likely to experience significant volatility due to central banks' monetary easing policies, the potential reelection of Trump, and other external variables.