Bitcoin hits record €68.000 as bulls set sights on gold’s throne
Bitcoin recently reached an all-time high of nearly €68,000 in the Eurozone, achieving record highs against multiple global fiat currencies like the euro, Australian dollar, and Canadian dollar. This milestone underscores Bitcoin’s growing appeal as a hedge against fiat currency depreciation, especially in regions where central banks, like the European Central Bank (ECB), maintain critical views on cryptocurrencies. Long-time analyst Tuur Demeester highlighted this significant moment for the Eurozone, noting the impact on its 350 million citizens as BTC reached unprecedented levels in euro terms after nearly eight months of price consolidation.
Beyond fiat currencies, Bitcoin bulls are now eyeing another target: gold. Gold reached its own record dollar high of $2,789.85 per ounce on October 29, driven by renewed interest in risk assets in the fourth quarter. Veteran trader Peter Brandt pointed out the competitive landscape, calling the battle between Bitcoin and gold a “heavyweight division” contest in the context of fiat depreciation. Despite Bitcoin’s recent price rally, it remains below key resistance levels seen in March 2024 and prior double highs in 2021, indicating that further progress is needed to surpass gold’s position as a “safe haven” asset.
The ECB has maintained a contentious stance toward Bitcoin, reflected in its latest report, which suggested that early Bitcoin adopters effectively “steal” economic value from latecomers. This report sparked backlash from the crypto community, with Demeester voicing concerns that such views might justify restrictive measures like heavy taxes or even outright bans on Bitcoin. According to Demeester, this perspective represents a “declaration of war” against Bitcoin, hinting at potential regulatory hurdles ahead.
While Bitcoin is approaching “price discovery” territory in dollar terms, surpassing prior highs remains a challenge. Economic conditions, regulatory responses, and market dynamics with competing assets like gold influence its trajectory. For instance, as the U.S. dollar fluctuates, Bitcoin has been able to leverage these shifts, but maintaining momentum requires broader market support.
Overall, Bitcoin’s strong performance against fiat currencies suggests growing interest from investors seeking alternatives to traditional assets. However, to solidify its position as a universal asset alongside gold, Bitcoin will need to overcome both technical resistance levels and increasing scrutiny from regulatory bodies worldwide. As Bitcoin seeks global price discovery, its trajectory is set against a backdrop of evolving investor sentiment and potential regulatory pushback.
Source: Cointelegraph
Bitcoin’s Trump inspired rally faces economic hurdles to reach new highs
Bitcoin’s recent rally appears to be fueled by investor speculation on Donald Trump’s potential victory in the upcoming U.S. presidential election, with Bitcoin serving as a “liquid proxy” hedge against a Trump win, according to a crypto analyst known as “The Giver.” This hedge suggests that some investors believe a Trump victory was previously “underpriced” and may yield short-term gains for Bitcoin holders. However, this trend could lead to a “sell the news” situation, where Bitcoin’s price might drop after the election as investors take profits.
On October 29, Bitcoin surged above $73,600, the highest level since March 2024 and near its all-time high. However, The Giver emphasized that this rally doesn’t guarantee a sustained upward trend post-election, as Bitcoin’s role as a hedge does not imply causation between Trump’s election odds and Bitcoin’s price. Instead, the analyst argues that Bitcoin’s recent gains are part of a broader “Trump trade” that includes other assets previously overlooked.
The October rally aligns with rising odds for Trump’s victory, notably as seen in Polymarket, a leading decentralized predictions market. On October 16, when Trump’s odds surged to over 60%, Bitcoin hit a two-and-a-half-month high above $68,200. By October 28, as Trump’s odds surpassed 66%, Bitcoin climbed past $70,000 for the first time since June. However, The Giver underscores that rising odds for Trump are not solely driving Bitcoin’s price, as the macroeconomic environment lacks the necessary conditions for a new all-time high. Specifically, current economic conditions and central bank policies, including quantitative easing, are not providing enough liquidity to support significant price growth.
Quantitative easing, a central bank practice of purchasing government bonds to boost liquidity, can encourage investors to move capital into alternative assets like Bitcoin. However, The Giver suggests that current “easing conditions” are not strong enough to sustain Bitcoin’s price at a new peak due to weaker liquidity correlations than expected.
Despite this cautious outlook, other analysts are optimistic. Bitfinex analysts, for instance, project Bitcoin could rally to $80,000 by the end of 2024. They argue that the options market structure and potential for a Republican presidency could support this growth, regardless of macroeconomic restraints. Whether Bitcoin’s current rally can achieve new highs will ultimately depend on both the election’s outcome and broader economic conditions affecting liquidity in the crypto markets.
Source: Cointelegraph
VanEck partners with Kiln to simplify Solana staking for institutional investors
VanEck, a prominent asset manager, has partnered with Kiln, a digital asset rewards platform, to simplify Solana staking for institutional investors. This collaboration aims to bridge traditional finance with the digital assets world by offering a seamless Solana staking experience. The initiative allows institutional investors to participate in Solana’s staking rewards without directly managing Solana tokens (SOL) or technical requirements, thus removing common barriers to entry for large investors unfamiliar with staking processes.
The partnership builds on VanEck’s established interest in Solana and follows its prior launch of a Solana-focused ETF, highlighting its commitment to integrating Solana into its investment products. By adding Solana staking options to its portfolio, which already includes exchange-traded notes (ETNs) and exchange-traded funds (ETFs), VanEck emphasizes its long-term bullish outlook on Solana as a digital asset with significant growth potential. The asset manager believes Solana could reach a substantial portion of Ethereum’s market cap, indicating its confidence in Solana’s future relevance in the digital finance ecosystem.
Kiln’s role in the partnership centers around managing the complexities of staking. Laszlo Szabo, Kiln’s Co-Founder and CEO, expressed enthusiasm for the collaboration, which he views as a critical step in offering reliable, simplified staking options to institutional investors. Kiln’s expertise ensures a secure and user-friendly staking experience, allowing investors to benefit from financial returns without having to handle SOL tokens directly or deal with the technical setup.
This move aligns with the growing trend of liquid staking, which has gained significant traction in 2024. Solana’s popularity among staking assets makes it a strategic choice for institutional investors looking to diversify within digital finance. VanEck aims to capitalize on this momentum by reinforcing Solana’s place in its product lineup, providing investors with secure, regulated access to the digital assets market.
For VanEck, this partnership represents a strategic expansion of its Solana-focused investment strategy, potentially positioning the firm as a key entry point for institutional capital into Solana. As Solana’s value recently rebounded after a summer decline, VanEck’s offerings could appeal to investors looking for robust returns from emerging blockchain assets. This collaboration ultimately strengthens Solana’s role in the institutional market and supports VanEck’s mission to bridge the gap between traditional finance and digital assets through reliable, accessible solutions.
Source: Coinpaprika