Bitcoin hits latest all-time high near $ 69,000 as multiple factors drive gains

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Bitcoin prices hit their latest all-time high as numerous tailwinds fueled gains. (Photo Illustration … [+] by Mykola Tys / SOPA Images / LightRocket via Getty Images)

SOPA Images / LightRocket via Getty Images

Bitcoin prices have hit a new high, flirting with the price point of $ 69,000 as the digital currency benefits from numerous tailwinds.

At around 9:15 a.m. EST, digital currency rose to $ 68,990.90, according to data from CoinDesk.

After hitting that level, it had grown almost 140% this year, additional figures from CoinDesk reveal.

After approaching $ 69,000, the cryptocurrency fell back, but only slightly, without falling below $ 68,000.

Following this very modest drop, it rallied, trading closer to $ 68,600 as of this writing.

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

In explaining these most recent gains, market analysts cited several developments, ranging from the anticipation surrounding Taproot’s next upgrade to the latest inflation numbers and how they could portend greater interest in bitcoin. .

“A series of factors continue to function as structural favorable winds for the price of Bitcoin,” said Kay Khemani, Managing Director of Specter.ai.

These include the ongoing ETF approvals, which for the time being are limited to the United States; greater clarity on unified and coordinated regulatory reform, which could help govern digital assets, thus weaving them into the existing financial fabric; and finally, the Taproot upgrades that give Bitcoin functional use within the developer community, which all Bitcoin bears are worried about.

Other analysts have also spoken about the Taproot upgrade, with Armando Aguilar, vice president of digital asset strategy for Fundstrat Global Advisors, describing it as the biggest bitcoin upgrade in four years.

Taproot will offer greater confidentiality of transactions as well as greater efficiency, he said.

But the biggest improvement will be that it unlocks the potential of smart contracts.

Investors have become bullish on the latest upgrade, pushing the digital asset to a new ATH in addition to macro factors, Aguilar said.

Marc Bernegger, member of the board of directors of Crypto Finance Group, also weighed in on this issue.

Upgrading Taproot will have a substantial impact on the future growth and use of Bitcoin and significantly increase the rate of adoption, he said.

It certainly has an impact on the demand and price of Bitcoin as well.

Petr Kozyakov, co-founder and CEO of the Mercuryo global payment network, also spoke about the upcoming upgrade, but stressed the importance of separate development.

Bitcoin just climbed to another all-time high (ATH) of just above $ 68,700 as anticipation and build-up around the Bitcoin Taproot upgrade, which is expected to take place in a few days, soars , did he declare.

While the Taproot upgrade marks a major shift in the way the Bitcoin network will operate, especially in terms of transaction fees and smart contract integration, the main powerful driver of current execution is a whole different one. fundamental.

He went on to talk about inflation figures for the United States, which were released today and showed that the consumer price index for all urban consumers rose 6.2% over the course of the ‘last year.

The inflationary trend is evident and should continue its bullish momentum, Kozyakov said.

Investors are exploring the options that cryptocurrencies, especially Bitcoin, offer as a viable hedge against inflation, he said.

The inflationary factor attracts a broader class of investors more than the Taproot upgrade and is expected to fuel a continued rise in BTC at least until the end of this year.

Bernegger also spoke about these latest figures.

The release of the massive inflation rate in the United States today was another trigger for the Bitcoin price spike, he said.

More and more investors are worried about a permanent and high inflation cycle and are looking for ways to preserve their assets.

Disclosure: I own bitcoin, bitcoin cash, litecoin, ether, EOS, and soil.

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