FameEX Hot Topics | Bitcoin Surpasses $90,000 for the First Time as Market Rally Intensifies

On November 13, Bitcoin's price broke through the $90,000 mark for the first time, setting a new all-time high. As of the latest data from CoinDesk, Bitcoin was trading at $90,776. Since the U.S. presidential election on November 5, Bitcoin prices have surged over 30%, signaling strong optimism in the cryptocurrency market about the regulatory policies of the incoming administration. During his campaign, President-elect Donald Trump promised to make the U.S. the "global cryptocurrency capital" and proposed establishing a strategic Bitcoin reserve. These policy promises have been identified as key drivers behind the sharp increase in Bitcoin’s price.

The price surge in Bitcoin has also been accompanied by a significant rise in overall cryptocurrency market activity. According to Coinglass, in the past 24 hours, 207,739 traders were liquidated, with a total liquidation value of $638 million. Meanwhile, the global cryptocurrency market capitalization increased by 1.5%, surpassing $3.1 trillion for the first time since 2022. Analysts note that Bitcoin's current rally represents a "deterministic bull market," but they caution that short-term fluctuations are still possible.

From a supply-side perspective, the market has seen price increases similar to previous periods following Bitcoin halvings, typically about six months after such events. Demand-side factors, particularly the anticipation surrounding President Trump's policies and his pro-Bitcoin stance, are also seen as crucial drivers for the current price surge.

In addition, U.S. Federal Reserve monetary policy has had an impact on Bitcoin prices. On November 13, the U.S. Bureau of Labor Statistics reported a 2.6% year-on-year increase in the Consumer Price Index (CPI) for October, in line with expectations. Following the release of this data, traders increased their bets on a rate cut by the Federal Reserve in December. According to the CME Group’s FedWatch tool, the probability of a rate cut in December rose significantly to 79.3%.

Looking ahead, market sentiment remains positive about Bitcoin's future. Data from event prediction platform Kalshi shows that 60% of users believe Bitcoin will reach $100,000 by January 2025, while 45% anticipate it could hit that milestone as early as November 2024. 

However, analysts have urged caution, noting that while market sentiment is high, investors should be mindful of potential fluctuations and risks in the volatile cryptocurrency market. 

In summary, Bitcoin’s current surge reflects the market's optimism regarding new government policies and the future growth of cryptocurrencies. Despite the promising outlook, investors are advised to carefully manage risks as they navigate the market’s volatility.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.