Bitwise Invest CEO Hunter Horsley said on Saturday that there are no overvaluation concerns among Bitcoin investors despite the cryptocurrency hitting new all-time highs this week.
What Happened: “Bitcoin is different. When Bitcoin’s price goes up, people view it as more likely that it will succeed, and therefore be even more valuable. And so it’s likely to go up even further,” Horsley said.
With stocks, however, when the value rises, investors decide that it is overvalued at one point and become “less interested” until the price goes down, Horsely noted while adding that this “reflexivity” differentiates Bitcoin from other equities.
Bitcoin is currently trading at $79,069.34, marking an increase of 15.4% over the past seven days, as per data from Benzinga Pro.
Why It Matters: Bitcoin price has been rising over the past few days following Donald Trump‘s victory in the U.S. presidential elections.
The crypto industry's optimism following Trump's win is in line with recent predictions of a bullish cycle in the crypto market. Analysts have pointed to favorable macroeconomic conditions and the potential for more crypto-friendly legislation under the Republican administration as key drivers of this anticipated growth.
Binance CEO Richard Teng interprets Trump's victory as a “golden era” for the crypto industry and is expecting the arrival of new U.S. regulators who are open to digital currencies. The crypto sector, previously under strain from the preceding Democrat administration, now anticipates a substantial policy shift in Washington.
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