The cryptocurrency market has experienced a remarkable surge, spearheaded by notable gains in Bitcoin (BTC) and Dogecoin (DOGE). Over the past 24 hours, the total market capitalization of cryptocurrencies has seen an impressive rise of more than 4%, reaching approximately $2.9 trillion during the early Asian trading session on Monday, November 11. This surge underscores the growing interest and investment in digital currencies globally.
Bitcoin Reaches New Heights
Bitcoin, the leading cryptocurrency, has witnessed a significant price increase, rallying over 5% within the last 24 hours to achieve a new all-time high of around $81,672. This upward momentum in Bitcoin has sparked interest and optimism within the altcoin market, as many altcoins attempt to follow Bitcoin’s bullish trajectory. However, the increased volatility in the crypto market has also led to substantial liquidations, with over $684 million being liquidated from leveraged traders during this period.
Major Factors Driving Bitcoin Price Up
The recent price surge in Bitcoin and the broader cryptocurrency market can be attributed to several macroeconomic factors, particularly those originating from the United States. The election of pro-crypto candidates in the U.S. has invigorated the mainstream adoption of digital assets and web3 protocols, fostering a favorable environment for cryptocurrencies.
Furthermore, the United States is anticipated to approve the purchase of 1 million Bitcoins within the next five years as a strategic move to address its escalating national debt. Additionally, both the Federal Reserve and the Bank of England (BoE) implemented rate cuts last week to stimulate economic growth, prompting whale investors to shift from gold to Bitcoin and the altcoin market in pursuit of higher returns.
US spot Bitcoin ETFs, led by BlackRock’s IBIT, have reported net cash inflows exceeding $7.3 billion in the last five weeks, highlighting the growing institutional interest in Bitcoin.
What Lies Ahead for Bitcoin?
Bitcoin has entered a pivotal phase of the macro bull market, characterized by a parabolic rally, as evidenced by its highest weekly close since inception. Renowned trader Peter Brandt has drawn parallels between Bitcoin’s current price action and Gold’s performance in the macro time frame. Brandt observed that Bitcoin’s price behavior since March 2021 mirrors Gold’s trajectory from 2010 to early 2024.
Brandt has projected a long-term target of $260,000 for Bitcoin, suggesting that the cryptocurrency will remain in price discovery until the second half of 2025. After this period, it is expected to encounter a major bearish cycle in the subsequent years, emphasizing the cyclical nature of financial markets.
As the cryptocurrency market continues to evolve, investors and analysts alike are keeping a keen eye on these developments, recognizing both the opportunities and challenges presented by this dynamic and rapidly changing landscape.
