Another week of twists and turns? What will affect the Bitcoin exchange rate – News

However, the market with bitcoin – and of course with other cryptocurrencies – is expecting a challenging week, when a number of events and announcements could affect the development of the rate. “On Tuesday, Nvidia also reports its latest results. This company has become a model of the revolution in artificial intelligence. Cryptocurrencies are likely to react to the company’s announcement,” said Simon Peters, crypto market analyst at eToro.

“In the UK on Wednesday, Chancellor of the Exchequer Jeremy Hunt will release the Government’s Autumn Statement. Although little information has been given ahead of time, there is talk of key tax cuts, while crypto-asset investors will be watching for further developments in the sector in the UK,” noted Peters.

Paradoxically, courses can also respond to time off. “US financial markets are closed on Thursday for the Thanksgiving holiday, while Black Friday kicks off the pre-Christmas shopping season. Thanksgiving tends to create thin trading volumes, which can lead to volatility in major investment markets, including crypto,” added the crypto market analyst.

In the past few weeks, the Bitcoin rate has been jumping like crazy. The week before last, the most famous cryptocurrency was traded according to a specialized server CoinMarketCap for CZK 867,245, but last week the exchange rate dropped to CZK 792,704. This week, bitcoin started at CZK 842,031, on Tuesday at noon one virtual coin had practically the same value – namely CZK 836,085.

However, in a month-on-month comparison, bitcoin improved significantly. “In the last month, the price of Bitcoin has increased by 25%. At the same time, nothing major has happened on the market yet. So the current growth is mainly due to the news about the Bitcoin ETF and its potential approval. Also interesting is the timing of this news, which comes before the expected bitcoin halving (the so-called next bitcoin halving, editor’s note). It awaits us in the spring of 2024,” Štěpán Uherík, financial director of SatoshiLabs, which produces Trezor crypto-wallets, told Novinky.cz.

“Bitcoin exchange rate is generally governed by normal market forces such as supply and demand. ETFs are currently driving demand upwards. However, the supply of bitcoin decreases over time through the so-called halving of bitcoin. Add to that the human psychology of speculators wanting to get rich quick, and we have a combination that creates what we can observe even now. Fantastic Bitcoin headlines causing a short-term investment crowd frenzy. However, it should not be overshadowed by the fact that bitcoin has on average grown steadily since its inception,” added Uherík.

At the same time, Bitcoin is not the only cryptocurrency whose value increased by tens of percent within a few weeks. “Among the best performing cryptocurrencies on eToro last week was Fetch.ai, which was up just under 20% as a number of other AI-related cryptoassets and other investments saw strong performance during the week,” Simon Peters commented on current developments.

For interest: at the beginning of this year, the ethereum exchange rate was CZK 27,010, but in the first half of November it was already CZK 49,065, which is the highest value for this year. This week on Monday afternoon one virtual coin was offered for CZK 45,862, on Tuesday at noon the value was CZK 45,116.

“Currently, it is interesting to compare the performance of the two most famous cryptocurrencies, Bitcoin and Ethereum. At first it seemed for a long time that this ‘rally’ would be driven by bitcoin and that ethereum would lose. The reason was the fact that there was only talk about the Bitcoin ETF and there was silence on the sidewalk for ethereum,” said Roman Valihrach, founder and CEO of the Czech cryptocurrency exchange Coinmate.

However, that changed in the first half of November. “However, on Thursday, November 9, information leaked to the public that Blackrock had registered a company called iShares Ethereum Trust. As the name suggests, this is the first step for a potential Ethereum ETF application. This information put blood back into the veins of ethereum fans and it gained 12% in one day. Blackrock did not comment on the situation and so far everything is more at the level of speculation. But it will be interesting to see how the whole situation unfolds,” added Valihrach.