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The cryptocurrency market is buzzing as Bitcoin’s price skyrockets, nearing the significant $90,000 threshold amidst political developments.
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In the wake of Donald Trump’s recent presidential victory, trading volumes in the crypto sphere have surged dramatically, signaling potential bullish trends.
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Bloomberg analyst Eric Balchunas noted, “The Bitcoin Industrial Complex saw $38b in trading volume today, setting records all over the place.”
Bitcoin approaches $90K following Trump’s win, boosting crypto trading volumes significantly. Will momentum continue, or is a pullback imminent?
Impact of Bitcoin nearing $90K
Bitcoin’s impressive rally of over 11% in just 24 hours, reaching $89,700 on November 12, has not only attracted attention but has resulted in an unprecedented surge in trading volumes across major U.S. Bitcoin exchange-traded funds (ETFs). Concurrently, prominent crypto firms such as MicroStrategy Inc. (MSTR) and Coinbase Global Inc. (COIN) are experiencing record trading activity.
The combined daily trading volume for these assets soared to an extraordinary $38 billion, dwarfing the previous high of approximately $25 million observed in March. This unprecedented trading activity points to renewed investor confidence and interest in the cryptocurrency market.
Eric Balchunas, an ETF analyst at Bloomberg Intelligence, provided further insights into this phenomenon: “The Bitcoin Industrial Complex saw $38b in trading volume today, lifetime records being set all over the place, incl $IBIT which did $4.5b, which points to a robust week of inflows. Just an insane day, it really deserves a name a la Volmageddon.”
Bitcoin ETF, too, sees a surge
Besides the existing players in the market, the momentum is also benefiting newer entrants. BlackRock’s spot Bitcoin ETF recorded a staggering influx exceeding $1.1 billion in a single day soon after Trump’s victory, setting a remarkable benchmark for trading volumes.
MicroStrategy emerged as a major beneficiary from this bullish trend, witnessing its stock surge over 25% to $340 on November 11. Coinbase followed suit, with its shares rising nearly 20% to reach $324.20, marking its highest price point since 2021. Notably, both MicroStrategy and Coinbase were among the top five most-traded stocks in early trading, eclipsing established giants like Apple and Microsoft, as pointed out by Balchunas.
Community reaction and more
The market’s fervent response to Trump’s presidential win was emphasized by Sam MacDonald, who echoed concerns about the sustainability of this surge. He remarked on Twitter, “@EricBalchunas just trying to gauge the vibe in Wall Street. Are these numbers turning heads? Seems (from afar) like the Trump effect is pushing everything higher.”
This conversation underscores the uncertainty surrounding Bitcoin’s recent price action and the various elements contributing to market fluctuations. While the excitement surrounding the price surge is palpable, uncertainty looms regarding its sustainability. Market analysts continue to monitor indicators closely as potential pullbacks could also impact future price movements.
Conclusion
In summary, Bitcoin’s journey towards the $90,000 mark has triggered substantial trading volumes and interest in the crypto market. The unprecedented records set in both traditional crypto firms and newly launched ETFs underscore a shifting sentiment among investors, yet uncertainty remains a constant in this volatile market. Observing how the coming days unfold will be crucial for understanding whether this bullish trend can be maintained or if a correction is on the horizon.
