Russian economist Andrey Stolyarov says the price of Bitcoin (BTC) has reached a crazy high, with Bitcoin currently trading north of $88,904 due to the excitement on the market and investors’ confidence. According to the expert, Associate Professor, and Deputy Head of the Financial Market Infrastructure Faculty at Russia’s National Research University Higher School of Economics (HSE), crypto’s potential is believed to contribute to Bitcoin’s rising course. But Stolyarov has cautioned that these highs won’t last forever, and the price will come down soon.
Bitcoin Slips as Market Confidence Dies
Bitcoin prices have risen with investor sentiment. Stolyarov said that strong technical and fundamental catalysts and investor enthusiasm create a positive space for cryptocurrency. However, he noted that a pullback could occur as bullish pressure decreases, creating a temporary high in Bitcoin’s bull run.
Investor optimism has also been fueled by market speculation of favourable U.S. policies under President Trump. Many people in the crypto space expected Trump’s re-election to be crypto-friendly. These expectations add so much to the market’s enthusiasm, encouraging investors to think about other liquidity measures that the Federal Reserve might take.
Many Bitcoin investors now focus on the Trump administration’s potential crypto policies. ‘In particular, market momentum has been fueled by crypto-related projects and the expected rate cuts by Trump,’ Stolyarov indicated. Cryptocurrency also hopes to follow the lead of other assets by generating more favourable policies to help push the asset into the mainstream limelight.
While Stolyarov is wary of applying the term ‘golden age’ to this period, several market observers have already done so. But he conceded the market is optimistic and not an era-defining moment. For now, the combination of policies and investor belief drives market activity.
Institutional Investments and Global Conditions Strengthen BTC Demand
Importantly, on the institutional side, there have been huge investments outside of supporting political efforts. MicroStrategy’s recent $2 billion Bitcoin purchase pointed to the catalyst being institutional backing, said Sumit Gupta, co-founder of Indian crypto exchange CoinDCX. Such investments are a sign of confidence from huge investors who see Bitcoin as a secure store of value.
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Global economic conditions were also favourable, as Bitcoin’s favour, Gupta added, contributed to long-term growth. The rising inflation, and currency devaluation fears also motivate more people to view Bitcoin as a hedge. According to industry analysts, this has allowed macroeconomic factors to continue to bolster the demand for Bitcoin.
Because of institutional support, Bitcoin has gained credibility with retail and institutional investors. This trend towards institutional adoption shapes the new narrative of Bitcoin in the broader financial setting. Bitcoin’s infusion with mainstream portfolios is part of drawing new investors into the Bitcoin market.
Crypto Sentiment Remains Strong, but a Correction is Expected
There is too much to be an arrest, and the current optimism could be related to short-term sentiment, according to experts such as Stolyarov, who are warning the market of an inevitable correction. Nevertheless, even the highs could reverse if bullish forces wane, putting the price on the edge of that downturn. However, given the sensitivity of Bitcoin’s price to internal market sentiment and external economic conditions, some level of volatility will almost certainly remain.
It’s a cautious stance compared to investor communities excited by what comes next, proclaiming Bitcoin will continue upwards. A Russian crypto investor, Dima said he and his peers remain optimistic. This sounds about right for a bull market, with most serious traders hoping that a market downturn is still on the horizon.
For now, the driving force behind record highs in Bitcoin is belief in cryptocurrency’s potential. This sentiment, driven by policy expectations, institutional investments, and macroeconomic trends, allows Bitcoin to run the bull market in the short term. But Stolyarov and other experts say a market correction is on the way when optimism falters.
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