Russian Economist: Belief in Crypto Is Driving Bitcoin to New Highs
A prominent Russian economist has stated that the belief in cryptocurrency is the driving force behind Bitcoin reaching new record highs. On November 11, Bitcoin prices soared to over $84,000, prompting the economist to make this observation. However, the expert also cautioned that prices would inevitably drop once the bull market pressures subside.
The economist, Andrey Stolyarov, is an Associate Professor and the Deputy Head of the Financial Market Infrastructure Faculty at the National Research University Higher School of Economics (HSE). He responded to comments made by Richard Tan, the CEO of the cryptocurrency exchange giant Binance, who claimed that Donald Trump’s victory in the US presidential election had ushered in a “golden age” for cryptoassets.
Stolyarov acknowledged that while it may be difficult to define the current climate as a “golden age,” it is indisputable that bullish sentiments have taken hold of the market. He stated, “The golden age is an abstract concept. But in reality, cryptocurrency is currently in a bull market. Both technical and fundamental factors are contributing to this. There will definitely be a decline at some point. It is difficult to say when. But for now, the market believes in a bright future and a golden age.”
The expert agreed with the notion that Trump’s victory has sparked “another bull market,” with crypto investors feeling optimistic. He explained, “Expectations of a further rate cut [from the Federal Reserve] and greater liquidity give the bulls momentum. It is difficult to say how long this sentiment will last. But for now, the wind is blowing in the sails of crypto advocates.”
The HSE, based in Moscow, is regarded as the leading financial and public research university in Russia. It has campuses in Perm, Nizhny Novgorod, and Saint Petersburg as well.
According to a Russian crypto investor and resident of Saratov, who preferred to remain anonymous, Russian crypto investors are feeling positive about their positions. The investor stated, “I’m feeling very positive about all of my positions. And my crypto friends in our group chats are all feeling very positive.”
Analysts attribute Bitcoin’s continued surge on November 11 to anticipation about Trump’s pro-crypto policies. However, some believe that other factors are also contributing to this rise. Sumit Gupta, Co-founder of the India-based crypto exchange CoinDCX, stated, “Bitcoin’s recent price surge is driven by a combination of factors beyond just U.S. election anticipation. A pivotal element is MicroStrategy’s announcement to invest up to $42 billion in Bitcoin over the next three years. This substantial institutional commitment signals strong, long-term confidence in Bitcoin, further establishing it as a hedge and store of value among large-scale investors.”
MicroStrategy recently made a Bitcoin purchase worth over $2 billion, which analysts believe is another driving force behind the soaring Bitcoin prices. Gupta also mentioned that macroeconomic conditions are aligning in Bitcoin’s favor, contributing to renewed demand and enthusiasm for the cryptocurrency.
Prior to the November 5 election, Trump unveiled plans for a crypto project focused on decentralized lending services.
