Bitcoin (BTC) is on a roll! After topping $80,000 on Sunday, the world's biggest cryptocurrency has made history by hitting past the $81,000 mark, surging 5.52% in the past 24 hours. The bullish momentum in the world's biggest cryptocurrency comes amid a broader market response to recent political shifts and macro trends.
The euphoria around Trump's emphatic victory in the U.S., followed by increased institutional interest has propelled BTC to surge over 18% in the past week, amid heightened hopes of regulatory clarity around it.
The second biggest crypto, Ethereum, however, is down 0.98% in the past 24 hours, reaching $3,163, Coindesk data shows.
This is for the first time in history that Bitcoin crossed the $81,000 mark and reached a historic $1.5 trillion market capitalisation. Gupta says it is a "testament" to renewed market optimism driven by strong fundamentals and recent U.S. election results. "If regulatory frameworks become more favourable, we could see even broader institutional adoption, potentially marking the end of the crypto winter and fostering a stronger digital asset ecosystem," says Sumit Gupta, co-founder of CoinDCX.
Balaji Srihari, business head, CoinSwitch, says the election of Donald Trump as U.S. President has lifted the "regulatory weight" from the industry. "Since the November 5 election results, Bitcoin has gained over 30%, signalling a fresh wave of confidence among investors. We now have large institutional investors accumulating Bitcoin and offering it as an asset to customers through exchange-traded funds (ETFs), a positive regulatory environment and several innovative projects ready for takeoff. It's the perfect set-up for a bull cycle."
He says the current trend suggests that Bitcoin could not only hold its ground above $80,000 but also set the stage for even greater gains soon. "At CoinSwitch, we’re seeing an encouraging trend: the trading volumes have risen by 350% since the election results (as compared to the previous week)."
Edul Patel, CEO of Mudrex, says the BTC fear-greed index signals “Extreme Greed,” indicating strong momentum. At the same time, long positions in futures have risen to $2.8 billion on BTC at $90K, showing market confidence in the ongoing bull run. "Ethereum has also rallied, climbing to $3,200 amid positive sentiment following Bitcoin’s latest peak. This upward momentum may fuel price action across broader markets." Bitcoin’s resistance stands at $82,500, with strong support at $75,600, he adds.
Notably, analysts are drawing parallels to the historic bull run that began in November 2020, which spanned a year. However, today’s scale is markedly larger, reflecting Bitcoin’s increasing adoption by both retail and institutional investors.
Vikram Subburaj, CEO, Giottus Crypto Platform, says the bullish momentum has sparked speculation around a potential rally toward $90,000 and some optimistic traders setting their sights on the $100,000 milestone in the near term. "Other top crypto assets have disproportionately surged this week indicating the market’s confidence in Bitcoin retaining current levels."
Once a crypto sceptic, Trump this year became a convert to the crypto-verse. He injected fresh hopes into the struggling crypto community as he promised to bring it into the mainstream with the so-called sovereign “Bitcoin Reserve” -- just like gold or oil. "If crypto is going to define the future, I want (it) to be mined, minted and made in the U.S.A...," he said.
Trump's July 27 address at the Nashville Bitcoin Conference, proposed to reserve “100% of all the bitcoins” the U.S. government currently holds. Predicting bitcoin would surpass gold's $16 trillion m-cap, Trump said he would use it to pay off the U.S.’ $35-trillion debt.
