On the afternoon of October 31, the bitcoin rate on most exchanges briefly rose above the $ 14,000 level, exceeding the local maximum of the summer of 2019.
Bitcoin was previously above this mark in early January 2018. The next significant resistance level is now the all-time high of $ 20,000 in 2017.
However, there is also a fly in the ointment for the bitcoin bulls - in the short term, the current growth looks rather uncertain. After updating the three-year high, Bitcoin failed to gain a foothold above the significant level and it “rolled back” by $ 13,800 correctional. Trading volumes for today are also not highlighted. The US presidential elections, the results of which will be announced on November 4, are also a factor of increased volatility.
As for the long-term outlook, the cryptocurrency remains "on a horse" here. The second wave of the coronavirus pandemic is forcing central banks to continue injecting into the economy through additional emission of fiat currencies. Whoever becomes the next US president, the Fed is likely to continue the old policy of low rates and "dropping money from a helicopter." This is a key positive signal for all reserve assets, including gold and bitcoin.
We should not forget about the main driving force of the market - the interest of institutional investors. And he remains high. Major players continue to buy bitcoin for reserves, and Grayscale, the most popular operator of regulated cryptocurrency funds, recently announced investments of $ 300 million in one day on October 23 and $ 1 billion in the third quarter of 2020.
