Bitcoin breaks $67,000 again, short-term volatility remains

Bitcoin breaks $67,000 again, short-term volatility remainsOn the evening of October 15th, Beijing time, Bitcoin's price surged past $67,000 per coin, hitting its highest point since July 30th. As of 7:47 PM on October 16th, Bitcoin reached $68,400 per coin, representing a 4

Bitcoin breaks $67,000 again, short-term volatility remains

On the evening of October 15th, Beijing time, Bitcoin's price surged past $67,000 per coin, hitting its highest point since July 30th. As of 7:47 PM on October 16th, Bitcoin reached $68,400 per coin, representing a 4.59% increase over the previous 24 hours and an 8.20% increase over the past 7 days. Year-to-date, Bitcoin has seen a cumulative increase of 59.42%.

This recent surge in Bitcoin's price is attributed to the confluence of factors like market fund inflows, macroeconomic policy, and shifting market sentiment. Strong inflows of capital into Bitcoin spot ETFs constitute one of the key drivers of the market's rise. Concerns over future inflation and currency devaluation have fueled an ongoing surge in demand for inflation-hedging assets within the market. Additionally, the approaching US presidential election has led to a decrease in policy uncertainty, injecting confidence into the market.

However, as a highly volatile asset, price fluctuations are a common occurrence for Bitcoin. On March 8th of this year, Bitcoin's price first touched the $70,000 mark, overtaking silver in market capitalization and securing its position as the eighth most valuable asset globally. On March 12th, Bitcoin peaked at $72,890 per coin, experiencing an intraday surge of over 5%. On March 14th, Bitcoin reached an all-time high of $73,700 per coin.

But thereafter, Bitcoin's price also underwent significant corrections. On August 4th, it dipped below $60,000, followed by another plunge on August 5th, falling below $53,000 and even reaching as low as $49,000. On the evening of January 3rd, Bitcoin's price also plummeted rapidly, breaking below the crucial $45,000 mark, subsequently falling through $44,000, $43,000, and $42,000, dipping temporarily below $41,000, with a maximum decline exceeding 10%.

Data from Coinglass shows that, as of 7:47 PM on October 16th, the past 24 hours witnessed 80,582 liquidations totaling $285 million, with the largest single liquidation occurring on OKX-ETH-USDT-SWAP, amounting to $6,547,400.

Multiple experts have pointed out that despite Bitcoin's recent robust performance, future trends remain uncertain. Investors need to maintain vigilance and approach Bitcoin's short-term fluctuations and long-term value with rationality, implementing risk management strategies such as setting reasonable stop-loss points, diversifying investment portfolios, and prudently allocating assets to achieve stable value appreciation.

Yu Jianing, Co-Chairman of the Blockchain Special Committee of the China Communications Industry Association, remarked that this round of Bitcoin's surge is influenced by numerous factors. On the one hand, strong capital inflows into Bitcoin spot ETFs have enhanced the recognition of Bitcoin as a long-term asset. On the other hand, market participants' sentiment and expectations are one of the key drivers propelling Bitcoin's price upward. Particularly in the context of the upcoming US presidential election, the waning of policy uncertainty has instilled confidence in the market.

Zhao Wei, Senior Research Fellow at OKX Research Institute, believes that the impact of the macroeconomic environment is particularly crucial. Although the release of inflation data like the US CPI led to widespread market expectations of a slowed pace of interest rate cuts by the Federal Reserve, concerns over future inflation and currency devaluation persist, driving an ongoing increase in demand for inflation-hedging instruments within the market. Bitcoin, as a scarce asset with a fixed total supply, is widely regarded as an effective tool for hedging against inflation and currency depreciation.

Wang Peng, Associate Researcher at the Beijing Academy of Social Sciences, points out that the ongoing release of liquidity by central banks in multiple countries has eroded investors' confidence in traditional financial assets, while digital currencies have gradually emerged. Especially in countries like the US, the gradual opening up of financial regulation has increased acceptance of digital assets like Bitcoin, significantly stimulating market demand. Furthermore, the continuous entry of institutional investors is another significant factor driving Bitcoin's price surge.

Gao Chengshi, Executive Committee Member of the Blockchain Special Committee of the China Computer Society, expresses continued optimism regarding further price increases in Bitcoin, acknowledging that price fluctuations, including substantial corrections, are likely to occur during this period. Favorable factors include the enhancement of Bitcoin acceptance by governments in various countries and regions since 2024, clarifications on regulatory policies in major countries and regions around the world, and the increasingly widespread acceptance of Bitcoin as a payment method by prominent global merchants.

Zhao Wei also highlights that Bitcoin's future trajectory will be subject to various influences, particularly changes in the global financial environment and the gradual clarification of regulatory frameworks. Bitcoin should be viewed holistically, considering its potential as a scarce asset to resist inflation and diversify trading risks. However, in the current environment of global economic uncertainty, traders should maintain rationality and caution, thoroughly assessing market conditions and their own risk tolerance, and avoiding blindly following the herd.

Yu Jianing analyzes that in the gegenwrtigen globalen Finanzmrkten, the correlation between US stocks and Bitcoin has significantly strengthened. The emergence of Bitcoin ETFs has accelerated its inclusion in mainstream financial investment portfolios. This implies that when global market liquidity is ample, or when the Federal Reserve adopts loose monetary policies, Bitcoin's price tends to rise in tandem. However, when US stocks experience severe fluctuations or when the Federal Reserve tightens monetary policies, Bitcoin may face considerable downside risk. Therefore, the Federal Reserve's monetary policy, global liquidity conditions, and the release of macroeconomic data will continue to impact Bitcoin's short-term price fluctuations.

On the flip side, the gradual clarification of regulatory policies holds a dual impact on Bitcoin's future trajectory. Governments worldwide are strengthening their oversight of digital assets to ensure the stability of the financial system. While strict regulation might negatively affect market sentiment in the short term, suppressing speculative activities, in the long run, a clear and reasonable regulatory framework would enhance market transparency and compliance, fostering greater confidence among institutional investors. As regulation matures, Bitcoin might evolve into a more standardized asset class, attracting participation from more mainstream financial institutions and investors, pushing its price upward.

Yu Jianing concludes that Bitcoin is likely to remain a highly volatile asset in the future, but as regulation and market infrastructure improve, its investment value will gradually stabilize. For investors, understanding Bitcoin's long-term potential as a digital asset while acknowledging its high-risk nature in the short term remains a crucial investment strategy.

This article is based on a report from International Finance News.