TL;DR
- Bitcoin’s rally continues to gain momentum, nearing the $90,000 mark and marking its best weekly performance since the 2023 US banking crisis, with a 29% increase in the past week.
- Bitcoin’s market cap has surged by $413 billion over the past week, representing its most impressive seven-day performance since March 18, 2023, according to Vetle Lunde of K33 Research.
- Despite significant market volatility, Bitcoin remains around 6% higher over the past 24 hours, with institutional participation and ETF inflows playing a crucial role in its recent rally, driven by Trump’s 2024 US presidential election victory.
Bitcoin‘s rally continues to gain momentum as it approaches the $90,000 mark, marking its best weekly performance since the 2023 US banking crisis. Bitcoin surpassed the $85,000 record high, but this was merely a brief pause. The world’s first cryptocurrency is trading at $87,000, up over 29% in the past week, according to CoinMarketCap data.
Bitcoin’s nearly 30% weekly return represents its most impressive seven-day performance since the US banking crisis in 2023. Vetle Lunde, head of research at K33 Research, noted that Bitcoin has experienced its best 7-day return since March 18, 2023. Over the past week, Bitcoin’s market cap has surged by an astounding $413 billion.
Market Reactions and Volatility
The recent surge in Bitcoin’s value has been accompanied by significant market volatility. During the European morning trading session on November 12, 2024, Bitcoin came within touching distance of $90,000, swinging between highs well above $89,000 before falling below $86,000.
Despite the price swings, Bitcoin remains around 6% higher over the past 24 hours, trading slightly above $87,000 outperforming the wider crypto market, which has risen just under 3.5%.
In the past 24 hours, there has been a significant spike, resulting in almost $900 million worth of liquidations in crypto-related futures, with the losses evenly split between optimistic and pessimistic positions.
Institutional Participation and ETF Trends
Institutional participation has played a crucial role in Bitcoin’s recent rally. The inflows into Bitcoin ETFs have significantly contributed to the cryptocurrency’s parabolic rise. Bitcoin ETFs recorded an increment of $1.1 billion worth of net positive inflows. Driving Bitcoin’s trading volume to new heights.
Impact of Trump’s Election Victory
Bitcoin has surged since Donald Trump’s 2024 US presidential election victory, driving a greater appetite for risk as investors expect more business and innovation-friendly regulations in the world’s largest economy. Notably, Trump’s economic policies could propel Bitcoin’s price beyond the $1 million mark.
According to Hayes, who wrote in a blog post, it took $4 trillion to reduce the debt-to-nominal GDP ratio from 132% to 115%. If the US aims to lower it further to 70%, the level it was at in September 2008, a linear extrapolation suggests that $10.5 trillion of credit would need to be created to achieve this deleveraging. This is how Bitcoin reaches $1 million, as prices are determined at the margin.
