$BTC skyrocketed past $89,000, setting an all-time high. Based on Coinmarketcap data on Tuesday (11/12/2024), the global crypto market capitalization jumped 10.72% to $2.97 trillion in the last 24 hours. This increase coincides with President Donald Trump's second term, which has begun to have a significant impact on the crypto market.
Pro-Crypto Policy Push
Donald Trumpâs victory in last weekâs US presidential election has helped fuel Bitcoinâs bullish trend. With hopes of more crypto-friendly policies, investors are showing renewed optimism. Market analysts such as Fadi Aboualfa of Copper.co attribute the positive outlook to the increasing accumulation of Bitcoin exchange-traded funds (ETFs). The ETF is expected to hold around 1.1 million Bitcoins, increasing institutional exposure and demand for the crypto.
MicroStrategy's Role and BTC Accumulation
Bitcoin price also got a big boost from Michael Saylorâs MicroStrategyâs announcement that it made a single-day purchase of 27,000 BTC worth $2.03 billion, the largest single-day purchase since the start of their âBitcoin strategyâ in 2020. The purchase is part of a $42 billion acquisition plan that could potentially push Bitcoin price towards $100,000 in the coming months, as per market expectations.
Market Sentiment and Future Prospects
Prediction market Polymarket predicts Bitcoin could hit $100K before the end of 2024. Analysis from Ecoinometrics indicates that the current Bitcoin rally is still in its early stages compared to previous post-halving growth. However, the Parabolic SAR and Bull-Bear Power indicators show that bullish sentiment is still strong, with buying pressure still high.
The increase in Bitcoin ETF trading volumes, as noted by Eric Balchunas, further confirms the growing positive sentiment among investors. In this context, if MicroStrategy continues its massive accumulation and demand remains strong, Bitcoin could soon break through the psychological resistance at $90K and continue its rally towards the ambitious target of $100K.
