Global trading markets are witnessing major changes in light of rapid technological progress, the most important of which is the emergence of digital currencies that have become competitive with traditional currencies in financial markets. Bitcoin is considered the first leader on the scene, as its value reached about 94 thousand dollars yesterday, Friday.
This comes as central banks in many countries of the world are intensifying their efforts to develop digital currencies that are supported by government guarantees, which enables the opening of new horizons, and among the most prominent of these attempts are what the United States, Russia and China are planning.
In this report, we focus on analyzing market data to provide a complete view of advanced digital currencies, focusing on Bitcoin as it is the currency with the most influence on financial markets, in addition to reviewing the support it enjoys from prominent figures such as US President-elect Donald Trump, which strengthens its position in the global economy. .
The future of trading
Economist and financial analyst Ahmed Akl believes that digital currencies could be one of the most prominent trading tools in 2025. He said that in light of technological acceleration, the demand for Bitcoin and other digital currencies is expected to increase, and for new currencies to appear that will lead to new changes in the markets.
He added – in statements to Al Jazeera Net – that the decline in US interest rates will reduce the gap between bank returns and other investment opportunities, and increase the importance of digital currencies for investors looking for major returns.
Akl expected US interest rates to fall to levels ranging between 4% and 3.75%, from 4.25% currently.
Akl explained that the size of the Bitcoin market reached two trillion dollars by the end of 2024, which reflects a major shift towards strengthening the digital currency market.
Akl said that the factors supporting Bitcoin include low interest rates, government support, and economic and geopolitical tensions.
warning
On the other hand, Camille Al-Sari, an economist and professor of economics and international relations at Sorbonne University, warned in statements to Al-Jazeera Net against believing that Bitcoin will be the currency of the future or the best means of achieving profits.
He stressed the existence of safer options, such as gold, thanks to its long history and multiple uses in jewelry and central bank reserves.
Bitcoin achieved several records throughout 2024, and exceeded the threshold of $100,000 for the first time, topping the sector amid a broader rise in cryptocurrencies after Donald Trump won the US presidential elections, according to the American Forbes magazine website.
But its historic rise to $100,000 wasn’t the best market performance by a cryptocurrency last year, thanks to several altcoins and meme coins (influenced by social media mentions) that rose significantly as well.
At the same time, financial analyst Ahmed Akl spoke about the possibility of the emergence of new currencies competing with Bitcoin with the support of central banks, such as the digital dollar or euro. However, Bitcoin remains the most important digital currency, but it faces challenges in being the first choice for investment due to its small number and the rise in… Their prices, which makes investment institutions beware of them, and do not rely on them as the only option.
Akl believes that cryptocurrencies will remain an important part of investment, even though their use is limited to individuals at a higher rate than major institutions.
Opportunities and risks
Economist Camille Al-Sari believes that Bitcoin lacks any subjective truth, as its entire value depends on speculation as a result of the interaction between supply and demand. He says that there are many Bitcoin traders who rely on speculation to achieve gains, which makes it closer to gambling than to a sound economic environment.
For his part, Akl warned of the risks facing cryptocurrencies, such as network hacking, which could lead to huge losses for investors.
Last September, technical analyst Katie Stockton of FairLead Strategies expected – according to a report from Bloomberg – that the risks would lead to Bitcoin falling to a price range between 50 and 52 thousand dollars.
State policies
The Arab Gulf countries are cautious towards digital currencies, due to some security concerns in addition.
As for Jordan and Iraq, they have warned of its risks while expressing interest in blockchain technologies. Both Egypt and Morocco imposed a severe ban due to fears of money laundering operations, with indications that this ban could be reviewed in the future.
The lack of clarity and weakness in supervision and legislation remains at the forefront of the adoption of digital currencies in the Arab region.
Regarding this, Camille Al-Sari says that China has taken a strong stance towards Bitcoin, refusing to recognize it, because it poses a threat to its economy and does not serve its global commercial interests.
As for the European Union, Al-Sari indicated that it is similar to the Chinese position, because it seeks to protect its currency, the euro, from random Bitcoin speculation, and to focus on the role of the central bank in achieving economic stability.
On the other hand, Al-Sari stated that El Salvador officially recognized Bitcoin as a legal currency, but this decision was met with many criticisms, due to the weakness of its economy and its limited adoption.
Donald Trump’s positions on digital currencies
In an interview with CNBC last month, Trump said we will achieve something special by leveraging cryptocurrencies.
When asked about his intention to create a cryptocurrency reserve similar to oil reserves, he replied, “Yes, I think so.”
Economist Kamil Al-Sari believes that there is a high possibility that Trump will change his position towards Bitcoin, either due to fear of its negative impact on the American economy, or under pressure from the monetary and financial authorities.
Although Trump’s continued support may raise the value of Bitcoin to levels of up to $150,000, the risks related to manipulation could lead to the collapse of the currency, which could harm its popularity, especially among American investors who are most dependent on it.
As for financial analyst Akl, he believes that the Trump administration’s support may contribute to Bitcoin’s rise to $150,000 or more, but he warns of its risks, such as high price fluctuations and technical challenges.
