(Kitco News) – The crypto bull market is in full swing as Bitcoin (BTC) hit a new all-time high of $90,000 on Coinbase overnight while Dogecoin (DOGE) rallied to a high of $0.4355 and currently trades at $0.3860, an increase of 29.5% on the 24-hour chart.
“The total capitalization of the cryptocurrency market approached $3 trillion, rewriting the record set almost exactly three years ago,” noted Alex Kuptsikevich, chief market analyst at FxPro. “During the day, the indicator grew by more than 8%. The nature of the movement indicates the liquidation of short positions in the largest coins, primarily Bitcoin. At the same time, individual altcoins are increasingly shooting up.”
“The first cryptocurrency soared almost 10% in 24 hours, coming close to $90K, although only a little over a day ago, it tried to consolidate at $80K,” he added. “Reaching the $100-110K target area now looks like a matter of a couple of weeks or even days.”
“Dogecoin is even more actively destroying skeptics with open positions,” Kuptsikevich said. “In 24 hours, it soared 44% to $0.4. It traded sustainably higher for only 15 days in May 2021. This area was pivotal in April and June that year, so it’s worth paying extra attention to it this time around as well.”
Data provided by TradingView shows that Bitcoin bulls rallied from a low of $80,315 in the early hours on Monday to hit a high of $90,000 on Tuesday morning before pausing to regather their strength.
BTC/USD Chart by TradingView
Bitcoin has now gained more than 30% since the low of $66,840 hit the Monday before the U.S. elections, where Donald Trump was re-elected as President, and according to analysts, the bull market rally is still in the early stages.
“The crypto market will continue climbing, of course, with the volatility that is associated with this market,” said Agne Linge, head of growth at WeFi, in a note to Kitco Crypto. “Overall, the general macro trends, institutional investor interest and Trump’s victory with expected positive policies towards crypto, play important roles in this visible price push.”
“The crypto market is still in the active growth phase in the current bull cycle,” she added. “Historically, the market kickstarts its post-Bitcoin halving rally around October, which peaks in November or December. The market experienced this trend in 2017 and 2021 and is playing out again. From the current outlook, the market might rally until the end of November, with a possible correction afterward.”
The rapid upsurge in crypto prices has led to a spike in sentiment, with the Crypto Fear & Greed Index now showing the market is in ‘Extreme Greed’ territory.
“The positive sentiment around Bitcoin and altcoins is very high, but the growth can only be linear for a little longer,” Linge said. “With 100% of Bitcoin investors in the money, profit-taking might start soon, as happens in every financial market.”
“Notably, the projected correction is healthy and will fuel another massive price rebound,” she added. “Per its reduced emissions rate, growing accumulation, and demand from institutional and retail investors, these Bitcoin fundamentals will all fuel scarcity, which might trigger a rapid rally for the coin.”
Linge highlighted that Trump’s election has helped propel crypto prices higher as he is expected to take a friendly stance towards the cryptocurrency industry.
“Long before the US Presidential elections, many viewed Donald Trump's emergence as a positive bet for the broader digital currency ecosystem,” she said. “The signs were there: the President discussed the major pain points crypto advocates had long debated. These include building a Bitcoin reserve, drafting functional crypto regulation, and reshuffling the leadership of the US SEC by firing Gary Gensler, the current Chairman.”
“These promises have built up anticipation in the market that a more crypto-friendly administration is coming, fueling a cash injection into the ecosystem,” Linge said. “While many argue that the rally in crypto prices is too premature to call, proponents believe Donald Trump will make good on his promises.”
“As unveiled earlier, Howard Lutnick, the CEO of highly crypto-friendly Cantor Fitzgerald, is part of his transition team, which may help shape the early crypto policies ahead of White House occupancy,” she noted. “The ongoing rally may be sustained in part by more visible signs that the incoming Trump administration will introduce the expected positive crypto regulations.”
“We will continue to see visible increase in interest in crypto and financial services offerings will incorporate increasingly more crypto-based products,” she concluded. “These will be in the shape of structured products like stablecoins; products that enable you to store your digital gold-BTC- and spend a portion of your crypto savings in more stable currency for daily expenses; AI-run programs that enable you to invest in digital assets with the help of blockchain technology: the future of finance is changing its shape in front of our eyes.”
For now, crypto traders are flying high with the quadrennial rally in full effect, and Bitcoin is looking to climb the chart of most valuable assets, having surpassed silver to become the eighth largest asset by market cap.
#Bitcoin just FLIPPED silver by market cap!#BTC #trading #Crypto $BTC pic.twitter.com/O2yyBR2nXe
— Bitcoinsensus (@Bitcoinsensus) November 12, 2024
At the time of writing, BTC trades at $86,688, an increase of 2.54% on the 24-hour chart.
