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The post Why is Crypto Going Up Today? appeared first on Coinpedia Fintech News
Since Bitcoin’s (BTC) price crossed the former resistance level around $73k last week, the flagship coin has continued to print a new all-time high (ATH) daily. Bitcoin price surged over 8 percent in the past 24 hours to reach a new ATH of about $89,560, before retracing to $87,930 on Tuesday, November 12, during the early Asian session.
Most of the top-tier altcoins – led by Dogecoin (DOGE) – gained bullish momentum, thus the total crypto market cap rallied above $3 trillion for the first time since 2021.
Why Bitcoin and Altcoin Prices Surged Today?
Rising Impact of Short Squeeze
Now reaching an all-time high of $87.5K, Bitcoin is seeing a massive spike in profit taking transactions as traders attempt to sell at the top. Meanwhile, funding rates on Binance and Bitmex indicate aggressive margin and leverage longs looking to capitalize on further rises. pic.twitter.com/Jy4BHEftV1
In the past two days, the crypto-leveraged market has registered more than $1.2 billion in forced liquidations, mostly involving short traders. As a result, short traders have gradually turned bullish, thus adding to the existing rising momentum, which is a classic example of an institutional-led short squeeze.
Institutional FOMO
The crypto community is celebrating Bitcoin's new all-time high, scraping $85K about 20 minutes ago. In the past year, whale & shark wallets with at least 10 BTC have accumulated a total of 234.15K (now worth $19.76B).
Cryptocurrency's ascension can largely be attributed to… pic.twitter.com/GzgRhI8IvJ
The ongoing Bitcoin rally has largely been fueled by the high demand from institutional investors seeking to capitalize on the macro bull market. As Bitcoin’s market cap crossed $1.73 trillion for the first time in over three years, investors of Gold and Silver ETF have accelerated switching to the BTC market.
According to the latest market data, the US spot Bitcoin ETFs registered a net cash inflow of over $1 billion on Monday. BlackRock’s IBIT registered a net cash inflow of over $760 million on Monday, thus continuing with its crazy purchases.
Meanwhile, MicroStrategy Inc. announced on Monday that it purchased another 27k Bitcoins worth over $2 billion.
Regulatory Clarity
I believe we can get this done with bipartisan support in the first 100 days IF we have the support of the people.
It is a game changer for the solvency of our nation. Let’s put America on sound financial footing and pass the Bitcoin Act! https://t.co/gPIGaUtiQZ
(@CynthiaMLummis) November 11, 2024
Bitcoin price has registered bullish sentiment since the victory of Donald Trump as the next U.S. president. According to Wyoming senator Cynthia Lummis, the next US administration will pass the Bitcoin Act to see the country adopt Bitcoin as a hedge against debt crisis within the first 100 days of office.
Meanwhile, Trump has nominated billionaire hedge fund investor Scott Bessent for the position of Treasury Secretary, which is considered very pro-crypto, particularly pro-bitcoin.
At the time of writing, 1 Bitcoin value was $80,945.21
Crypto could continue rising due to strong institutional demand and favorable regulatory signals, but high volatility means prices may fluctuate significantly in the short term.
Bitcoin is at an all-time high, so it may be wise to wait for a minor correction before considering a purchase. Patience could offer a better entry point.
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