The financial market is taking a surprising turn towards the bitcoin world

Although at first they were not well regarded by the market, the change in trends and regulations that has occurred in the world in recent years has become an important factor in making the perception of cryptocurrencies, especially bitcoin, an important turn and each time they are more investors who bet on this alternative of digital origin.

This was confirmed in a recent survey published by Sygnum Bank, a firm of Swiss origin, in which it is observed that more than 57% of banks and institutional investors plan to increase their investments in cryptocurrencies, highlighting a growing interest in this market, compared to to which there was much suspicion before.

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Martin Burgherr, client director at Sygnum, explained that clarity in regulations is a key factor driving this change, highlighting that the new context that exists in the financial world has made Bitcoin the biggest beneficiary, especially after reaching new all-time highs.

“The study surveyed more than 400 experts with more than a decade of experience in sectors such as banks, hedge funds and asset managers. More than 60% of participants maintain an optimistic long-term view of the crypto industry. This change in sentiment is supported by the recent increase in the price of Bitcoin and by the positive trend in the market, which has sparked the interest of large financial institutions,” said this expert.

Sygnum Bank also highlights the bullish dynamics of the market, evidenced by constant purchase orders on leading crypto platforms. Participants value Bitcoin and other cryptocurrencies as a consolidating opportunity within long-term investment strategies.

Pushing the limits

It is worth remembering that last Wednesday -November 13- bitcoin surpassed the US$90,000 barrier for the first time in its history, at a time when the sector is preparing for more flexible legislation and favorable economic policies under the Trump administration. . The largest cryptocurrency by capitalization surpassed this threshold towards the middle of the day, even reaching above US$91,000.

Likewise, it must be taken into account that just beginning the weekbitcoin grew to almost US$85,000, after exceeding the US$80,000 threshold on Sunday; reaffirming that cryptocurrencies continue to skyrocket after the election to the White House of Republican Donald Trump, who has promised to deregulate this sector, contrary to the more restrictive policy of current President Joe Biden.

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A golden age

The return of Donald Trump to the White House is a blessing for many players in the cryptocurrency sector who hope that the United States will reposition itself in this global market. The Republican candidate, previously very opposed to this technology, promised in July to make his country “the world capital of cryptocurrencies.”

Bitcoin and Donald Trump

iStock / EFE

Support groups close to digital currencies raised some US$245 million during the presidential campaign, according to the Federal Electoral Commission (FEC), most of it intended to attack Democrats who oppose the development of this technology.

According to The Washington Post, as soon as he was elected last week, the Republican magnate began looking for profiles of pro-cryptocurrency collaborators for key positions in his future government. Some members of his team have the mission of studying this world of numerical currencies to better understand their regulatory expectations, the newspaper noted.

The prospect of a new Trump presidency sent bitcoin into orbitthe most popular of the cryptocurrencies, which gained more than 25% in a week and on Wednesday exceeded, for the first time, US$90,000, since the elected President of the United States plans to remove the president of the organization from his position financial markets regulator (SEC), Gary Gensler, a critic of the sector.

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Without clear regulations, this former banker chose a repressive approach to cryptocurrencies, whose operation he intends to regulate as classic financial products. The SEC thus brought three of the largest exchange platforms to justice: Binance, Coinbase and Kraken, as well as some start-ups. – Pushed abroad – “The absence of clear rules not only stifled innovation, but also led companies” in the sector “to countries with more transparent legislation,” said Katherine Snow, legal manager of Thesis, which develops applications based on bitcoin. .

A bill now in the hands of the Senate provides for another regulator, the CFTC, to deal with the sector with a more pragmatic and less dogmatic perspective. This regulatory change could “accelerate the approval of new investment products” and “increase the flow of capital” to the digital currency ecosystem, said Simon Peters, an analyst at eToro. Chandra Duggirala, head of the Tides.Network incubator, expects a break with the policy of Joe Biden’s government, seen as “unfavorable to cryptocurrencies in the United States.”

With information from AFP.