Crypto investors are getting excited about the latest price surge of Bitcoin, which occurred only days after the US election, fueled by favorable market sentiment toward the digital currency industry.
Long-term holders of the firstborn cryptocurrency are now becoming interested in Bitcoin, as the digital coin is fast approaching the much-anticipated $90,000 mark.
$90K Is Just Around The Corner
Data showed that BTC’s price continues to surge, and analysts are confident that it will hit the $90,000 level sooner than expected.
Just several days after Donald Trump reclaimed the White House, Bitcoin price has been moving upward as the upcoming administration offers a favorable treatment of the cryptocurrency sector.
For the first time, Bitcoin went beyond the $87,000 mark after reaching $87,198, which more than doubled the $37,000 recorded 12 months ago. Then, it slightly slipped a bit on Monday.
In early Tuesday, BTC once again hit another all-time high when the coin hit $89,804, which raised its total market value to a whopping $1.77 trillion. The leading crypto asset saw a gentle drop as long-term holders started to make movements.
At the time of writing, Bitcoin price is pegged at $88,800. The alpha coin hit a new all-time high on Monday. On Bitstamp, BTC registered $89,899.
Analysts also noted that as BTC’s price moves upward so does its daily trading volume increases with a current value of $133 billion.
Bitcoin: The Domino Effect
Analysts said that the positive sentiment on Bitcoin is also having a domino effect on the entire cryptocurrency sector.
Its price surge is also pulling the price of other digital currencies worldwide.
CoinGecko noted that in the past 24 hours, the market capitalization of the global cryptocurrency was boosted by 4.7% and now boasted a record high of $3.11 trillion.
In addition, in the past week, the crypto market has already experienced a massive $765 billion increase.
In another report, crypto analysts said that crypto-related investment products recorded the virtual coin’s highest year-to-date inflows of about $31.3 billion, and the total amount of assets under management hit $116 billion.
If you’re wondering what’s happening with #Bitcoin…
Yes, the incoming Bitcoin-friendly administration has provided a recent catalyst…
But, that’s not the main story here.
The main story here is that we are 6+ months post-halving.
And that means a supply shock has… pic.twitter.com/XkwPoPxrj2
— Jesse Myers (Croesus
) (@Croesus_BTC) November 11, 2024
The ‘Trump Pump’
City Index senior market analyst Matt Simpson called the recent price movement in the cryptocurrency market a “Trump Pump”, explaining that many investors are betting that the Trump administration will pave the way for more cryptocurrency adoption.
Meanwhile, other analysts credited the positive sentiment on the crypto market as brought about by the promise of a more deregulated industry.
Lazard chief market strategist Ronald Temple said the incoming US president promised to dismiss the current head of the US Securities Exchange Commission (SEC), Gary Gensler, on the first day of his office.
The SEC has been pushing for the implementation of more rigorous regulations on cryptocurrencies, a move being criticized by crypto investors and entrepreneurs.
Featured image via Grok, chart from TradingView
