Bitcoin at $90,000 gates, flips silver as sellers hold back
This morning (UTC time), BTC is trying to break the $90,000 price level for the first time in its history.
By Cybernews
The world’s most popular cryptocurrency, bitcoin (BTC), continues its post-election rally following Donald Trump’s victory. This morning (UTC time), BTC is trying to break the $90,000 price level for the first time in its history.
Earlier today, BTC almost touched $89,900, gaining approximately 10% in a single day and 30% over the past week. Trading activity has surged as well, with today's turnover 70% higher than yesterday morning and over three times greater than a week ago. This surge in BTC’s market capitalization has also propelled it past silver, making it the 8th largest asset globally by market cap.
As market euphoria and greed reach new heights, concerns are rising about whether the current rally may be overheating. For instance, BTC’s price has diverged significantly from its 200-hour moving average, raising the possibility of an imminent correction.
However, analysts argue that the rally is not merely speculative but supported by strong fundamentals. Expectations of regulatory shifts in the United States – arguably the largest BTC market – are driving optimism. If such changes materialize, the crypto sector could gain unprecedented growth opportunities.
Despite this optimism, no concrete regulatory decisions have been made. Industry insiders emphasize that just ten days ago, banks were reportedly still under pressure to steer clear of crypto-related businesses.
Looking at BTC market dynamics, experts agree that reduced supply, rather than surging demand, is the key driver of the current price movement. Both short and long-term investors are showing little interest in selling BTC at current levels. Demand, meanwhile, remains robust, evidenced by strong inflows into BTC exchange-traded funds (ETFs). For instance, on Veteran’s Day, a US public holiday yesterday, BTC ETFs saw inflows of $358 million.
Speculation suggests that if BTC surpasses the $90,000 threshold, its price may consolidate in the $90,000 to $100,000 range for some time. That said, the $100,000 milestone is expected to be achievable before Donald Trump’s January inauguration. However, historically, predictions of a quick surge to $100,000 have often fallen short.
In either case, more traditional financial experts are warming up to the idea that bitcoin might become a strategic reserve asset for the US.
“We think bitcoin could become the next strategic reserve asset,” Barbara Goodstein, Managing Partner at R360, an exclusive group for individuals with net worths exceeding $100 million, told CNBC. However, while some Republicans are drafting legislation to establish a national BTC reserve, it has yet to pass.