Bitcoin Hits a New High! But Volatility Cannot Be Ignored, Investment Needs Caution

Bitcoin Hits a New High! But Volatility Cannot Be Ignored, Investment Needs CautionOn the evening of October 15th, Beijing time, Bitcoin price broke through $67,000 per coin, reaching its highest record since July 30th. As of 7:47 PM on October 16th, Bitcoin price has risen to $68,400 per coin, with a 24-hour increase of 4

Bitcoin Hits a New High! But Volatility Cannot Be Ignored, Investment Needs Caution

On the evening of October 15th, Beijing time, Bitcoin price broke through $67,000 per coin, reaching its highest record since July 30th. As of 7:47 PM on October 16th, Bitcoin price has risen to $68,400 per coin, with a 24-hour increase of 4.59% and a 7-day increase of 8.20%. Year-to-date, Bitcoin has risen by a total of 59.42%.

This round of Bitcoin's rise is considered to be the result of multiple factors, including market capital inflows, macroeconomic policies, and shifts in market sentiment. Among them, the strong capital inflows from Bitcoin spot ETFs are one of the core driving forces behind the market's rise. Concerns about future inflation and currency depreciation have also driven the continuous growth of demand for inflation-fighting assets in the market. In addition, against the backdrop of the upcoming US presidential election, policy uncertainty has eased, injecting confidence into the market.

Reviewing Bitcoin's Price Fluctuation History

On March 8th this year, Bitcoin price touched the $70,000 mark for the first time. On March 11th, Bitcoin's market value surpassed silver, becoming the world's eighth-largest asset in terms of market value. On March 12th, Bitcoin rose to a high of $72,890 per coin, with a daily increase of over 5%. On March 14th, Bitcoin hit a historical high of $73,700 per coin.

However, huge price fluctuations have always been the norm for Bitcoin. On August 4th, Bitcoin fell below $60,000, and on August 5th, it even plummeted to $49,000. On the evening of January 3rd this year, Bitcoin price also rapidly declined, falling below $41,000, with a maximum decline of more than 10%.

Recently, affected by severe price fluctuations, Coinglass website data shows that as of 7:47 PM on October 16th, a total of 80,582 people were liquidated in the past 24 hours, with a total liquidation amount of $285 million.

Multiple Factors Drive Bitcoin Price Upward

Yu Jianing, co-chair of the Blockchain Special Committee of the China Communications Industry Association, points out that this round of Bitcoin's rise is affected by multiple factors:

• Strong capital inflows from Bitcoin spot ETFs: This has increased the recognition of Bitcoin as a long-term asset.

• Market participant sentiment and expectations: Especially against the backdrop of the upcoming US presidential election, policy uncertainty has eased, injecting confidence into the market.

• Macroeconomic environment: Although the US released CPI and other inflation data, leading the market to generally expect the Federal Reserve to slow down the pace of interest rate cuts, concerns about future inflation and currency depreciation still exist, driving the continuous growth of demand for inflation-fighting assets in the market.

Zhao Wei, senior researcher at OKX Research Institute, says that the monetary policies of central banks in multiple countries have continuously released liquidity, and many investors have begun to lose confidence in traditional financial assets, while digital currencies are gradually emerging. Especially in some countries, where financial regulation is gradually becoming more open, the increased acceptance of digital assets like Bitcoin has greatly stimulated market demand. In addition, the continuous entry of institutional investors is also an important factor driving Bitcoin price upward.

Future Outlook: Bitcoin Will Remain Volatile, Investment Needs Caution

Gao Chengshi, executive member of the Blockchain Special Committee of the China Computer Society, says he remains optimistic about further price increases for Bitcoin in the future, though it's certain that Bitcoin price will fluctuate to some extent during this period, and even experience significant price corrections. Favorable factors include the increasing acceptance of Bitcoin by governments in multiple countries and regions since 2024, the clarification of a series of regulatory policies in major countries and regions around the world, and the increasingly common acceptance of Bitcoin as a payment medium by major traders worldwide.

Wang Peng, associate researcher at the Beijing Academy of Social Sciences, points out that although Bitcoin has performed strongly recently, its future trend remains uncertain. Investors need to remain vigilant and rationally view Bitcoin's short-term fluctuations and long-term value. When investing in Bitcoin, it's important to manage risks properly, including setting appropriate stop-loss points, diversifying investment portfolios, and rationally allocating assets to achieve steady growth.

Zhao Wei also says that the future trend of Bitcoin will be affected by various factors, especially changes in the global financial environment and the gradual clarification of policy regulation. Bitcoin should be viewed comprehensively from multiple dimensions. As a scarce asset, Bitcoin has the potential to resist inflation and diversify trading risk, but given the current uncertainty in the global economic environment, traders should remain rational and cautious, fully assess the market environment and their own risk tolerance, and avoid blindly following the crowd.

Impact of the Federal Reserve's Monetary Policy and Regulatory Policy

Yu Jianing analyzes that in the current global financial market, the correlation between US stocks and Bitcoin has become significantly stronger. Especially with the emergence of Bitcoin ETFs, the pace of Bitcoin being included in mainstream financial investment portfolios has accelerated. This means that when global market liquidity is abundant or the Federal Reserve adopts a loose monetary policy, Bitcoin's price tends to rise in sync. However, when US stocks experience sharp fluctuations or the Federal Reserve tightens its monetary policy, Bitcoin may also face significant correction risks. Therefore, the Federal Reserve's monetary policy, global liquidity conditions, and the release of macroeconomic data will continue to influence Bitcoin's short-term price fluctuations.

On the other hand, the gradual clarification of regulatory policies has a dual impact on Bitcoin's future trend. Countries around the world are strengthening their regulation of digital assets to ensure the stability of the financial system. While strict regulation may have a negative impact on market sentiment in the short term, suppressing some speculative behavior, in the long run, a clear and reasonable regulatory framework can actually improve market transparency and compliance, providing more confidence for institutional investors to enter. As regulation gradually matures, Bitcoin may become a more standardized asset class, attracting more mainstream financial institutions and investors, driving its price upward.

Conclusion: Highly Volatile Asset, Rational Investment Needed

Yu Jianing says that in the future, Bitcoin is likely to continue to exist as a highly volatile asset, but as regulation and market infrastructure improve, its investment value will gradually stabilize. For investors, understanding Bitcoin's long-term potential as a digital asset, while paying attention to its high-risk characteristics in the short term, remains a key investment strategy.

Source: International Finance News