Source: Cult Of Money
Key Points
- Bitcoin crosses the $80,000 USD milestone for the first time in history.
- Bitcoin up over 15% since the US-Election
- Market optimism fueled by Donald Trump’s election and a Federal Reserve rate cut.
Bitcoin soared above the $80,000 mark, setting a new all-time high of $80,700. This 5.5% increase extends its seven-day gains to over 18%, marking the highest weekly gain since February.
The surge comes on the heels of a week filled with significant economic and political events. Republican Donald Trump was elected as the U.S. president, and the Federal Reserve cut interest rates by 25 basis points. Both events are considered widely bullish among traders, fueling optimism in the digital assets market.
President Donald Trump has previously signaled strong support for cryptocurrency, even the potential creation of a Bitcoin reserve.
Bitcoin Price Chart As of November 10, 2024. Source: Coin Market Cap
Bullish Bitcoin Movement
Weekend pumps are generally viewed as bullish in the crypto market due to decreased trading volumes when institutional investors and professional traders are less active. Lower liquidity can lead to more volatile price movements, allowing even smaller trades to cause significant price changes.
The significant price increase over the weekend suggests that retail investors are driving market activity, indicating broad interest and participation from smaller investors rather than just institutional players.
Profit-taking among Bitcoin traders remains minimal compared to previous euphoric periods, suggesting the current rally still has plenty of room to grow. The annualized rolling premium in three-month Bitcoin futures on prominent exchanges like Binance and Deribit has surged alongside the price, topping 14% for the first time since June, according to data from Velo. The futures basis on the CME also rose past 10% on Friday.
Bearish crypto bets suffered significant losses, with $103 million in Bitcoin shorts and $70 million in Ether short bets liquidated. Altcoins like Dogecoin (DOGE) and Solana’s SOL saw over $25 million in liquidated trades, indicating increased futures participation in tokens outside of Bitcoin and Ether.
Final Thoughts
It appears that investors have been piling into Bitcoin over the last few weeks, with a huge surge since the election. Open interest in the $80,000 strike Bitcoin call options increased above $1.6 billion, according to Deribit data.
With such bullish activity, it appears that Bitcoin may have more room to run.
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