Bitcoin Price Blasts Through $82,000: These Are The Key Reasons
11 November 2024 - 1:00PM
NEWSBTC
Bitcoin surged past the $82,000 mark on Binance, marking a
substantial 17% increase since the public announcement of Donald
Trump’s victory in the recent US presidential election on
Wednesday, November 6. Over the past weekend, the BTC price staged
a rare “weekend pump”, rallying by more than 6%. While there are
several reasons for this move, one clear main reason stands out:
The victory of Donald Trump. #1 The Bitcoin “Trump Pump” Donald
Trump’s victory has significantly bolstered Bitcoin’s market
sentiment, primarily due to his campaign promises and supportive
legislative initiatives. During his election campaign, Trump
pledged to establish a national Bitcoin reserve by retaining
ownership of the 208,000 Bitcoins confiscated through various law
enforcement actions over the years. Senator Cynthia Lummis, a
Republican from Wyoming often dubbed the “Bitcoin Senator” for her
staunch advocacy, introduced the Bitcoin Act. This legislation aims
to acquire 1 million BTC within a five-year timeframe. As
Bitcoinist reported, the Bitcoin reserve could become a reality
quite fast. BTC Inc. David Bailey, who is a key Bitcoin advisor to
Trump, said recently that it could be done within the “first 100
days” of Trump’s term. In light of this, crypto research firm
Matrixport writes in their latest investor note: “With expectations
that Trump will transform US regulatory policies into a more
pro-crypto environment, the bullish momentum appears difficult to
halt. With his inauguration set for January 20, 2025, the market
has several weeks to sustain this rally. Related Reading: How High
Can Bitcoin Go In 2025? Legendary Trader Reveals Arthur Hayes,
founder of BitMEX, echoed this optimism on X: “Some of y’all don’t
believe Trump is about to trash the $ and print money. BTC
disagrees. Here is Bitcoin leading vs. my new money supply
indicator US Bank Credit. The market is speaking, listen up.”
Renowned crypto analyst MacroScope (@MacroScope17) further
elaborated on the implications for institutional investors: “Very
important for BTC traders to understand how the game has changed
since the election. In the institutional world, investments are
built around having a thesis […] It’s hard to overstate how much
the thesis has now changed for BTC in terms of the policy/political
element.” #2 Rumors About Bitcoin Nation-State Adoption The
strategic plans to establish a national Bitcoin reserve under Trump
carry substantial geopolitical weight, potentially igniting a
global race to amass Bitcoin reserves. David Bailey remarked, “The
Bitcoin Space Race has begun,” noting that “the game theory is
playing out faster than anyone could have expected.” Mike Alfred,
founder and Managing Partner of Alpine Fox LP, shared his
excitement on X: “I just got a call out of the blue. It was someone
important and they said someone huge is buying Bitcoin in size
tonight. I almost couldn’t believe it when they said the name.
Wild. We are going so much higher.” Related Reading: Economist
Predicts ‘Blow-Off Top’ For Bitcoin At $123,000 Post-Trump Win
Bailey commented on November 10, “There is at least one nation
state that has been actively acquiring Bitcoin and is now a top 5
holder. Hopefully, we hear from them soon.” His assertion,
accompanied by a meme suggesting certainty over speculation. He
added on the size: “Top 5 holder of bitcoin across all users.”
There is at least one nation state that has been actively acquiring
Bitcoin and is now a top 5 holder. Hopefully we hear from them
soon. — David Bailey🇵🇷 $0.85mm/btc is the floor (@DavidFBailey)
November 9, 2024 #3 Short Squeeze A significant short squeeze has
also contributed to Bitcoin’s price surge. Charles Edwards, founder
of Capriole Investments, commented on X: “Circa $1B of shorts
squeezed! From the weekend move from $76 to $81K. Open interest at
the same level as when BTC traded at $62K. Provided funding
continues to settle down, a very healthy up move.” Data from
Coinglass corroborates this, revealing that on Sunday, $133.15
million in BTC shorts were liquidated, with additional $33 million
on Saturday. This substantial liquidation of short positions has
reduced selling pressure, thereby fueling further upward momentum
in Bitcoin’s price. #4 Retail Is Back The resurgence of retail
interest has been another pivotal factor in Bitcoin’s recent rally.
Cameron Winklevoss, founder of Gemini, observed on X: “The road to
$80k bitcoin was paved with steady ETF demand. Not retail FOMO.
Little fanfare. People buy ETFs, they don’t sell them. This is
sticky HODL-like capital. Floor keeps rising. Where are we in the
cycle? We just won the coin toss, innings haven’t started.” Google
Trends data supports this narrative, indicating a 53% increase in
Bitcoin-related searches since the first weekend of October. On
November 10, Bitcoin web searches peaked at 95, up from 42 points
at the end of October. This surge in search activity suggests
heightened retail interest and potential influxes of new investors
into the market. At press time, BTC traded at $81,259. Featured
image created with DALL.E, chart from TradingView.com
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