The price of bitcoin (BTC) has increased this week to over $66,000 (USD), but there are factors that could impact its performance.
Bitcoin has been consolidating since reaching its all-time high of $73,700 seven months ago. Therefore, besides its recent strength, it is crucial that the global environment remains favorable for its demand to continue rising.
Currently, there are three main potential risks in the global outlook that could slow down bitcoin’s price growth.
If Kamala Harris wins the upcoming United States presidential election, it could have a bearish impact on bitcoin in the short term or at least slow down its rise. This is because her support for the digital assets industry has been more moderate compared to her opponent, Donald Trump.
According to betting odds on the Polymarket platform, 53% of operations expect Trump to win, while the rest expect Harris. However, there is no clear indication of who will win the presidential dispute.
Rising international tensions, particularly in critical areas like the Middle East and conflicts between Russia and Ukraine, pose a threat to bitcoin. During war situations or global uncertainty, investors tend to reduce risks by turning to more traditional assets like gold or government bonds.
The recent higher-than-expected inflation rates in the United States and the slowdown in the labor market have raised concerns about a possible recession. This could decrease risk demand and potentially slow down bitcoin’s rise unless its valuation grows due to factors like supply shortage and decentralized mining.
The narrative of bitcoin as “digital gold” could protect its price if investors see it as a store of value. However, this perception is not yet fully established, and the future of bitcoin’s price will depend on how economic data evolves and its role in a possible global crisis.
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