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Bitcoin, inarguably the world's preeminent cryptocurrency, created a new all-time high as Trump emerged as a shoo-in at the conclusion of the 2024 US presidential elections, and has refused to look back ever since.
In fact, the momentum around the cryptocurrency has been so strong that it managed to add ~$15,000 to its price just over the past week!
With Bitcoin currently hovering at the $86,000 price level, seasoned traders and analysts alike are converging on a conviction call that the world's largest cryptocurrency by market capitalization will hit the psychologically important $100,000 price level by the end of the year. This has predictably ignited the Fear Of Missing Out (FOMO) psychology of investors, leading to bouts of heightened momentum.
The Trump Factor
The SEC under its chair Gary Gensler adopted a regulation-by-enforcement approach to the crypto sector, which then resulted in dozens of high-profile lawsuits. What has been lacking throughout this arduous process is a clear-cut criterion for determining which coins constitute a security for investment purposes, thereby invoking the SEC's jurisdiction, and which could be classified as a commodity under the auspices of the CFTC.
The incoming Trump administration aims to promote the crypto sector in general and Bitcoin in particular by:
- Repealing SAB 121 - a guidance document provided by the SEC on digital assets that requires all custodians to list crypto assets on their balance sheet and create a corresponding liability of an equal value, thereby precluding banks from dealing in Bitcoin and other crypto assets.
- Promoting the use of stablecoins via dedicated legislation.
- Replacing Gary Gensler at the helm of the SEC with someone who's explicitly pro-crypto.
- Creating a strategic Bitcoin reserve.
It is hardly a surprise, therefore, that Bitcoin and other crypto assets have been rallying in recent days in anticipation of the benevolent tailwinds that are likely to soon start emanating from the Trump administration 2.0.
Bitcoin's FOMO Momentum-Driven Engine Revving Up
Even before the recent US presidential election, the ingredients for a sustained bullish momentum in Bitcoin were already in place.
Bitcoin ETFs have crossed $90b in assets, after yesterday's $6b jump ($1b in flows $5b in mkt appreciation).. they now 72% of the way to passing gold ETFs in assets. pic.twitter.com/7I3TMC8CfZ
— Eric Balchunas (@EricBalchunas) November 12, 2024
For instance, spot Bitcoin ETFs now hold a whopping $90 billion in assets and remain on a plausible trajectory to eclipse the holdings of gold ETFs.
As per a new study, Bitcoin moves in the direction of the global M2 supply a whopping 83 percent of the time! And, as we recently noted, the global liquidity proxy has now turned positive for the first time since February 2021, and is playing a major role in boosting Bitcoin's price.
Since Trump's reelection, however, Bitcoin's FOMO-driven momentum engine has revved up to an overdrive.
And $MSTR is up 10% premarket on the $BTC pump with $21B ATM offering still approved, time to sell some more stock and prepare the bids, fun loop for now https://t.co/aL8d2FT7un
— djohnson/ (@DJohnson_CPA) November 11, 2024
First, over the past weekend, MicroStartegy acquired 27,200 additional Bitcoins and now holds 279,420 BTC.
Here come Korea's momo chasers: retail turnover in Korea's crypto exchanges yesterday exceeded that of KOSPI
— zerohedge (@zerohedge) November 12, 2024
Next, South Korea's momentum chasers became active, with the aggregate volume over the past 24 hours on the country's crypto exchanges eclipsing the average daily trading volume of the KOSPI and KOSDAQ stock exchanges!
And, critically, search engine queries for Bitcoin are rocketing higher and remain on track to eclipse the local highs registered in 2022.
#BTC history suggests that we may not have a deeper pullback for a few more weeks
Until then, we'll be lucky to get any brief dips in the meantime
Generally, the first multi-week Price Discovery wave tends to enjoy mostly uninterrupted upside$BTC #Crypto #Bitcoin https://t.co/aiMo3DXK7a
— Rekt Capital (@rektcapital) November 11, 2024
As per historical analogs, Bitcoin is unlikely to see a deeper pullback in the next few weeks. This is predictably giving rise to bets on Bitcoin at $100,000.
Leverage needs to be cleaned up before attack on $100k. Please manage your risk carefully.
— Kris | Crypto.com (@kris) November 12, 2024
Nonetheless, some analysts are already cautioning about the soaring leverage in the crypto sector, as evidenced by the elevated funding rates on the perpetual crypto futures contracts.
Do you think Bitcoin will hit the $100,000 price level before the end of the year? Let us know your thoughts in the comments section below.
