Bitcoin does not stop on its way to $100,000. In the early hours of this Thursday, the largest cryptocurrency by market capitalization reached the record of US$97,836.61, but moderated the rise a little and is now 0.5% of that new All Time High (ATH).
In this way, BTC has risen 160% so far this year and almost 45% so far in November. The total market capitalization is US$3.3 trillion and in the last few hours a volume approaching US$260 billion was traded.
It so happens that the value of the cryptocurrency skyrocketed in the weeks following the election of Donald Trump as the next US president, along with the arrival of several pro-crypto legislators in Congress. “Although it is now firmly in overbought territory, it is attracted towards the $100,000 level,” said Tony Sycamore, analyst at IG Markets.
It should be remembered that Trump showed his support for digital assets during his campaign, promising to turn the United States into the “crypto capital of the planet” and accumulate a national reserve of bitcoin.
Interesting facts about the crypto market
Since the elections, More than US$4 billion have entered exchange-traded funds (Bitcoin ETFs) listed in the US. This week, options on the BlackRock ETF (IBIT.O) had a strong debut, with call options, which bet on an increase in price, being more popular than puts.
Cryptocurrency-related stocks have been rising along with the price of Bitcoin. Shares of bitcoin miner MARA Holdings (MARA.O) rose nearly 14% overnight, while MicroStrategy (MSTR.O), a loss-making software company that has been acquiring bitcoin, rose 10%, taking its market capitalization of more than US$100 billion.
“Many are wondering if this administration will bring the regulatory clarity that the crypto community has been waiting for. It is likely too early to tell,” he said. Will Peckhead of digital assets at WisdomTree, a global ETF issuer. “We see all this enthusiasm as a positive not only for Bitcoin or cryptocurrencies in general, but for the entire ecosystem enabled by blockchain that is growing today“.
What’s behind the rise of BTC
Matias Part, analyst Bitgetcomments that Trump’s victory generated optimism in the financial markets, especially in the cryptocurrency sector, due to his favorable stance towards these assets. This boosted institutional and retail interest in Bitcoin, raising its price above $90,000 and marking a turning point in its upward trend.
The city exchange strategist adds that the decision of the Federal Reserve (Fed) to reduce interest rates increased liquidity in financial markets, benefiting risk assets like Bitcoin. This environment led to the search for alternative assets in the face of the possible depreciation of the dollar, reinforcing the upward trend and attracting new capital to the crypto ecosystem.
Part also adds that the massive purchase of Bitcoin by MicroStrateg, company led by Michael Saylor, and which acquired approximately 51,780 bitcoins worth $4.6 billion, increasing its total holdings to 331,200 bitcoins, “reinforced confidence in the market and contributed to consolidating the price of Bitcoin above “the US$90,000”
Source: Ambito
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