The cryptocurrency market has seen a remarkable surge over the past 24 hours, predominantly led by Bitcoin (BTC) and Dogecoin (DOGE). This upward momentum has propelled the total crypto market capitalization to soar by over 4 percent, reaching approximately $2.9 trillion as of November 11, during the early Asian trading sessions.
Recent Trends in Bitcoin Price
In a notable development, Bitcoin’s price experienced a significant rally, climbing by more than 5 percent within the last day. This impressive surge has propelled Bitcoin to achieve a new all-time high (ATH) of around $81,672. As Bitcoin continues to exhibit bullish tendencies, the altcoin market is also attempting to mirror this upward trajectory. However, this rise in crypto volatility has resulted in the liquidation of over $684 million from leveraged traders within the same timeframe.
Major Factors Driving Bitcoin Price Up
The recent price movements in Bitcoin and the broader cryptocurrency market have been heavily influenced by macroeconomic conditions, particularly those emanating from the United States. A key factor contributing to this trend is the election of pro-crypto candidates, which has invigorated mainstream adoption of digital assets and web3 technologies.
Furthermore, the United States is poised to approve the acquisition of 1 million Bitcoins over the next five years as part of its strategy to address escalating national debt concerns. This strategic move is expected to further bolster the cryptocurrency market.
Last week’s decisions by the Federal Reserve and the Bank of England (BoE) to implement rate cuts aimed at stimulating economic growth have also played a pivotal role. This has prompted whale investors to transition from the gold market to Bitcoin and altcoins, seeking higher returns on their investments. Over the past five weeks, U.S. spot Bitcoin ETFs, spearheaded by BlackRock’s IBIT, have witnessed substantial net cash inflows exceeding $7.3 billion.
What Lies Ahead?
The current market scenario has set the stage for Bitcoin’s price to enter a fascinating phase of the macro bull market, characterized by a parabolic rally. Esteemed trader Peter Brandt has drawn parallels between Bitcoin’s price action and that of Gold in a macro time frame. Brandt’s analysis suggests that Bitcoin’s price behavior from March 2021 onwards bears similarities to Gold’s performance between 2010 and early 2024.
Brandt anticipates Bitcoin’s long-term target to reach $260,000, projecting that Bitcoin will remain in a phase of price discovery until the latter half of 2025. Following this period, Bitcoin is expected to transition into its next major bearish cycle in the years to follow.
