On November 12, after Bitcoin's price broke $90,000, it suddenly plummeted, dropping nearly $5,000 in just three hours.
The market shows that within 24 hours, Bitcoin peaked at $90,070.1, then fell sharply, dropping to as low as $85,500. As of the time of writing, Bitcoin is reported at $97,579.8.
Ethereum surged to $3,449 at one point, dropping to a low of $3,214, losing over $200 at one point. Coinglass data shows that over 260,000 people were liquidated across the network in the past 24 hours, with a total liquidation amount of nearly $1 billion.
Due to strong bullish momentum, Bitcoin has not shown any significant pullback or consolidation signs so far.
These views support Bitcoindata21's bolder bet. They believe that Bitcoin's first peak thereafter will reach $150,000, with no significant corrections before then, followed by a price drop to $120,000.
The Crazy Crypto Circle
Peter Brandt, a trader in the crypto field, pointed out on Monday that Bitcoin has already shown significant buying signals over the weekend, suggesting that the price of Bitcoin will break through the $200,000 mark. This is currently the most optimistic prediction.
Meanwhile, business intelligence company and large Bitcoin holder MicroStrategy bought over $2 billion worth of Bitcoin on Monday. It is reported that as of November 10, the company's return on investment for its spot Bitcoin holdings has exceeded 100%.
Additionally, Bitcoin exchange-traded funds are also performing well, with net inflows exceeding $1.5 billion for Bitcoin ETFs listed in the U.S. in the past week.
Cameron Winklevoss, co-founder of exchange Gemini, emphasized over the weekend that the momentum for Bitcoin's price breaking above $80,000 is provided by stable ETF demand, rather than retail sentiment. This provides solid momentum for the rise, and everything is just beginning.
Recently, Bitcoin's price has continuously set new historical highs, breaking through several round numbers, with a peak exceeding $90,000. Recently, multiple institutions and analysts have expressed optimism about Bitcoin. Geoff Kendrick, global head of digital asset research at Standard Chartered Bank, recently stated that after Trump's victory, Bitcoin's price will reach $125,000 by the end of this year and $200,000 by the end of 2025.
Nick Philpott, co-founder of digital asset brokerage Zodia Markets, stated: 'Our target range for Bitcoin after the Trump victory event is $75,000 to $80,000, while we expect ETF funds and broad cryptocurrency inflows to push Bitcoin to $100,000 in early Q1 next year, potentially even earlier. In terms of options, there are a large number of call options with strike prices between $80,000 and $100,000, which should further increase momentum.'
It is reported that Bitcoin options traders have set their sights on $100,000. According to data from cryptocurrency options exchange Deribit, investors are betting that Bitcoin will reach this milestone before the end of the year. As of Monday morning, there were approximately 9,635 Bitcoins (worth about $780 million) in open contracts betting that Bitcoin will touch $100,000 before December 27, making it the largest trade for that expiration date. However, Deribit estimates that the likelihood of this contract being profitable at expiry is only 18.6%.
Nick Foster, founder of the decentralized finance protocol Derive, said: 'The market experienced significant volatility after the U.S. elections, with traders pouring a lot of money into $100,000 call options expiring on December 27, making this trade one of the most notable recently.'
Despite increasingly bullish sentiments among investors, some cautious feelings still exist. Market analysts point out that there is uncertainty over whether Trump will fulfill his cryptocurrency promises made during the campaign, and there has been no substantial progress. With potential changes in the future, traders need to be wary of risks. Driven by Bitcoin, the total market capitalization of global cryptocurrencies has exceeded $3 trillion for the first time since November 2021.
(Trends in the total market capitalization of cryptocurrencies worldwide)
With the strong recent demand for cryptocurrencies from investors, BlackRock's iShares Bitcoin Trust, with a scale of $35 billion, set a record for nearly $1.4 billion in single-day net inflows last Thursday. Currently, the fund's total assets have surpassed BlackRock's other fund, the $33 billion iShares Gold Trust.
Yellow represents the total assets of BlackRock's iShares Bitcoin Trust, and black represents the iShares Gold Trust.
Broader data from Sosovalue indicates that since November 5, over three trading days, 12 spot Bitcoin exchange-traded funds (ETFs), including BlackRock's IBIT and Fidelity's FBTC, have seen a cumulative net inflow of $2.3 billion.
Bitcoin's market capitalization has surpassed that of silver, making it the eighth largest asset in the world, with Bitcoin's market cap currently at $1.741 trillion and silver's market cap at $1.735 trillion.
In the news, 'Bitcoin whale' MicroStrategy suddenly announced that it spent approximately $2.03 billion (about 14.6 billion RMB) to buy about 27,200 Bitcoins, marking the largest purchase since December 2020.
Stimulated by this news, MicroStrategy's stock price surged significantly, rising over 30% at one point during the day, and closing with an increase of more than 25%, bringing its total market value to $68.899 billion (approximately 500 billion RMB). Along with the announcement of its third-quarter report, MicroStrategy unveiled a '21/21 plan', which aims to raise $42 billion over the next three years through $21 billion in equity and $21 billion in bonds to purchase more Bitcoin. Of the $21 billion in equity financing, over $3.5 billion has already been raised.
In recent years, MicroStrategy has been investing in Bitcoin to hedge against inflation, consistently accumulating Bitcoin to become the company with the largest Bitcoin holdings among publicly traded companies in the U.S. As of September this year, MicroStrategy held over 250,000 Bitcoins, with a total value exceeding $17 billion as of October 31. MicroStrategy's stock price is closely tied to Bitcoin, with an accumulated increase of 438% since the beginning of 2024, while Bitcoin's accumulated increase during the same period is 101%.
There are significant differences among Wall Street analysts regarding the future performance of MicroStrategy's stock price.
On one hand, some analysts believe that the current stock price relative to asset value has become overvalued and is not expected to continue rising. On the other hand, some analysts believe that the new accounting standards next year will value the Bitcoin held by the company at market price, thereby reversing MicroStrategy's loss situation, making its stock still worth 'buying.'
The latest financing plan alleviates any doubts about whether MicroStrategy will continue its Bitcoin acquisition strategy during the market uptrend. If MicroStrategy proceeds with the '21/21 plan', MSTR stock could be valued at $300. Its model assumes that Bitcoin prices will continue to rise, expecting to reach $175,000 by the end of 2025.
