Bitcoin ($BTC) has reached an all-time high, surpassing $82,000, creating excitement among investors and drawing fresh attention to the cryptocurrency market.
With a market capitalisation of over $1.6 trillion, Bitcoin is now competing with some of the largest companies worldwide. Its strong growth is backed by rising institutional interest, positive investor sentiment, and recent changes in the global economic landscape.
On Monday, Bitcoin hit a record of $82,400, marking an enormous increase in its value over the past 14 years. In 2010, Bitcoin was worth only $0.50; today, it has risen by an astonishing 16 million percent.
Now trading slightly above $82,000, Bitcoin has gained about 3% over the past day, with activity across almost 12,000 markets and a daily trading volume of over $78 billion.
TradingView’s technical indicators also show strong “buy” signals, reflecting the confidence of traders and investors in the currency.
In the past 24 hours, liquidations in the cryptocurrency market reached $638 million, with $124 million of these coming from Bitcoin positions alone, showing the high level of activity and liquidity in the market.
Bitcoin’s price surge in 2024 has seen it increase by nearly 94%, thanks in part to interest in US Bitcoin exchange-traded funds (ETFs) and the recent decision by the US Federal Reserve to lower interest rates.
Analysts believe that these factors, combined with increased institutional interest, have helped to drive Bitcoin’s price to its recent peak.
Trump’s win and pro-crypto promises
Donald Trump’s recent election win in the US has become a key factor driving Bitcoin’s recent price surge. Trump’s campaign promises, which include making the US a “crypto capital”, have created a positive outlook for digital assets like Bitcoin.
Trump has suggested establishing a national Bitcoin reserve and appointing crypto-friendly regulators to support the industry. This approach has created excitement among investors, who believe that a Trump-led government might create a more supportive regulatory environment for Bitcoin and other cryptocurrencies.
Commenting on the situation, analyst James Check, known as “Checkmatey”, pointed out that the “distance” between Bitcoin’s price and its 200-day moving average (DMA) still shows potential for further growth.
Bitcoin analyst, Tuur Demeester, has also advised investors to hold onto their assets and avoid hasty decisions, expecting the recent price surge to be “just the beginning” of a potential bull market.
Bitcoin’s rise above $76,000 last week came soon after Trump’s election victory, sparking new confidence in the market. Many traders believe that this rally is the start of a longer upward trend, and Trump’s policies could help establish a more supportive atmosphere for digital currencies in the US.
The Federal Reserve’s recent interest rate cut of 25 basis points has also played a role in boosting Bitcoin’s appeal. The rate cut is part of a broader trend, with similar actions seen in the European Union and China.
With inflation rising, more investors are turning to Bitcoin as an alternative store of value, making it a key beneficiary of these economic shifts.
Institutional interest and market momentum
Institutional interest has also contributed significantly to Bitcoin’s recent growth. Last week, US Bitcoin ETFs recorded over $1.3 billion in inflows, led by BlackRock’s IBIT fund.
This level of participation from big players has made Bitcoin even more attractive, particularly for those looking for alternatives to traditional investments.
The Bitcoin futures market reflects this optimism, with $2.8 billion in contracts predicting that Bitcoin could reach $90,000 soon.
At the time of press, technical indicators continued to remain in the bullish region of their respective charts. The Relative Strength Index (RSI) was noted above the 70-mark, moving northbound.
The Moving Average Convergence/Divergence (MACD) also went through a bullish crossover of lines, post which, green histograms were seen on its chart.
In addition to Bitcoin, several other cryptocurrencies have also seen gains. Dogecoin ($DOGE), for example, has increased by 88% over the past month, recently overtaking $XRP and stablecoin $USDC in market cap to become the sixth-largest digital asset.
Other major cryptocurrencies like Ethereum ($ETH) $BNB, and Cardano ($ADA) have had modest gains, while smaller tokens, including dog-themed coins and Solana-based assets, have also jumped by around 30%, partly due to endorsements from figures like Elon Musk.
