Bitcoin, the flagship cryptocurrency has hit a new all-time high of $97,836 taking a step closer to fulfilling the prediction of analysts that the crypto asset will hit $100,000 before the end of the year.
Bitcoin in the early hours of Thursday morning surged to a new all-time high of $97,836 before cooling off to $97, 073 at the time of this report.
Bitcoin has surged by 4.1% in the last 24 hours with its market capitalization pumping to $1.9 trillion. The primary crypto asset maintains a 57.9% dominance over other crypto assets with its daily trading volume breaking the $85 billion threshold.
Bitcoin’s bullish rally has led to an opening on the popular prediction site Polymarket on whether the crypto asset will reach $100,000 before December.
The bullish rally also led to the Global market capitalization of all crypto assets hitting $3.3 trillion.
Reason Behind the Surge in Bitcoin Price
Bitcoin’s surge in price is a result of many collaborating factors with the most significant being the victory of Donald Trump in the Polls. The self-acclaimed Crypto president made a big case for his love for cryptocurrencies during the election campaign mulling plans to set up a strategic Bitcoin reserve if elected as president.
- Bitcoin smashed its several months All time high after his election victory kickstarting a bull run with a ripple effect across the market.
- Aside from Donald Trump winning the election, Pro-crypto politicians also dominated the U.S. House of Representatives and the Senate, leading to the expectations of crypto-friendly regulations with Trump’s second term.
- Another key factor behind the surge in Bitcoin is the launch of the spot BTC exchange-traded fund options in the US.
- Blackrock’s IBIT was the first investment product to get the green light from the US Securities and Exchange Commission.
The new spot BTC options are expected to increase the demand for digital gold as investors could manage their investment risks.
Finally, a third factor for the Bitcoin surge was revealed by Ki Young Ju the CEO of the market analysis platform Crypto Quant. He revealed that the surge is also driven by strong whale accumulation and over-the-counter deals mostly by institutions, not individuals.
The bitcoin halving which also took place played a key role by demanding a price rally for miners to remain profitable.
What to Know
- Donald Trump pledged to make America the world leader in cryptocurrencies if elected. His election victory is already shaking up things in the US Securities and Exchange Commission with Gary Gensler expected to step down soon.
- Memecoins remain the biggest performers of the bull cycle with Dogecoin, PNUT, and Chill Guy grabbing the deadlines for incredible surges over the past weeks.