Russian Economist: Belief in Crypto Is Driving Bitcoin to New Highs
According to a leading Russian economist, belief in cryptocurrency is the driving force behind Bitcoin reaching new record highs, as prices soared to over $84,000 on November 11.
However, the same expert also cautioned that prices would inevitably drop once the pressures of the bull market subsided.
The comments were made by Andrey Stolyarov, an Associate Professor and the Deputy Head of the Financial Market Infrastructure Faculty at the National Research University Higher School of Economics (HSE), as reported by the state-run news agency TASS.
Stolyarov responded to remarks made by Richard Tan, the CEO of the cryptocurrency exchange giant Binance, who recently stated in an interview with the British newspaper the Financial Times that Donald Trump’s victory in the US presidential election had ushered in a “golden age” for cryptoassets.
The Russian expert acknowledged that while it may be difficult to characterize the current climate as a “golden age,” there was no doubt that bullish sentiments had taken hold of the market.
“The concept of a golden age is abstract. However, 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,” Stolyarov explained.
He agreed that Trump’s victory had sparked “another bull market,” leading to increased optimism among crypto investors. Stolyarov stated, “The expectations of a further rate cut from the Federal Reserve and increased liquidity are giving momentum to the bulls. It is hard to say how long this sentiment will last. But for now, crypto advocates have the wind at their backs.”
The National Research University Higher School of Economics (HSE) in Moscow is considered the top financial and public research university in Russia, with additional campuses in Perm, Nizhny Novgorod, and Saint Petersburg.
A trader interviewed by Cryptonews.com, identified only as Dima, a Russian crypto investor residing in Saratov, expressed positive sentiments about their positions and noted that their crypto friends in group chats shared the same optimism.
Bitcoin continued its upward trajectory on November 11, with many analysts attributing the rise to anticipation of Trump’s pro-crypto policies.
While some argue that Trump’s victory is the sole driver, others, such as Sumit Gupta, Co-founder of the India-based crypto exchange CoinDCX, believe that additional factors are at play. Gupta points to MicroStrategy’s announcement to invest up to $42 billion in Bitcoin over the next three years as a significant factor driving the price surge. This substantial institutional commitment indicates long-term confidence in Bitcoin and solidifies its position 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 Bitcoin’s soaring prices.
Gupta also suggests that favorable macroeconomic conditions are aligning in Bitcoin’s favor, leading 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.