Bitcoin reaches 70,000 US dollars: A milestone with potential

After a prolonged period of sideways movement, Bitcoin has crossed the threshold of USD 70,000. It is only a few percentage points short of the previous high of USD 73,750. Analysts believe it is possible that the cryptocurrency will soon reach new records.

Two key price drivers could play a decisive role here:

1. Political uncertainties and the US election: The upcoming presidential election in the US on November 5 is coming into focus. Donald Trump, who is slightly in the lead according to polls and betting markets, has announced his intention to loosen the regulation of cryptocurrencies and introduce a national Bitcoin reserve. His opponent, Kamala Harris, is also showing openness to the crypto industry, but enjoys less support from crypto investors.

Experts such as Bruno Sousa from crypto asset manager Hashdex expect the price to rise further if Trump wins. In this scenario, analysts are forecasting short-term gains of up to 10% - which could drive Bitcoin to over USD 77,000.

2. ETF inflows: Since the introduction of Bitcoin ETFs in the US at the beginning of the year, interest from institutional investors has increased noticeably. The products enable investors to benefit from price developments without holding the cryptocurrency directly. Recently, ETFs have again recorded high inflows of funds, which could further reduce the supply of Bitcoin and drive up prices.

Institutional investments as a catalyst

Institutional investors are playing an increasingly important role in the Bitcoin market. According to reports, they now hold 21% of ETF shares, and inflows into these products have recently been exceptionally high. In the week before last alone, a net two billion US dollars flowed into Bitcoin ETFs.

This trend is likely to continue, as many asset managers are only gradually adding Bitcoin to their portfolios. Analyst André Dragosch from Bitwise describes ETFs as an important mechanism for stabilizing and increasing prices.

Macroeconomic factors are driving Bitcoin

In addition to political and institutional drivers, macroeconomic factors also play a role. The growing global money supply and signs of economic recovery could further boost the Bitcoin price. As a scarce commodity, Bitcoin traditionally reacts positively to an expansive monetary policy.

According to Dragosch, Bitcoin could reach 80,000 to 100,000 US dollars by the end of the year. By the end of 2025, a price target of up to USD 170,000 has even been put into play.

Challenges and uncertainties

Despite the optimistic outlook, experts warn of possible risks:

• Political realities: Even if Trump wins, it remains unclear how many of his announcements can actually be implemented. Some of his proposals, such as the introduction of a national Bitcoin reserve, face regulatory hurdles and are likely to be difficult to implement.

• Speculative object without a clear function: Critics such as Volker Brühl from the Center for Financial Studies complain that, despite its hype, Bitcoin does not yet have a clearly defined function - be it as inflation protection, digital gold or a technology investment.

Volatility remains a hallmark

The history of Bitcoin shows: Where quick profits are possible, risks also lurk. Abrupt price corrections are just as typical as rapid rises. Analyst Timo Emden emphasizes that increased fluctuations are to be expected, especially around the US election. Investors could act according to the motto "buy the rumor, sell the news" and realize their profits quickly.

Nevertheless, Bitcoin remains a key player on the financial markets and its development is being followed with interest. Whether the cryptocurrency reaches new records or experiences another correction will be decided in the coming weeks.