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Over the past
week, target="_blank">Bitcoin has
been breaking multiple All-Time Highs, following Trump’s victory in the US
Presidential Elections. From the much-anticipated $75,000 mark on November 6th
to the current $87,000 today. This rally, combined with the increasing investor
participation indicates that we have entered a strong bull run increasing
Bitcoin’s market cap to $1.7 trillion for the first time since its launch.
Breaking one ATH after the other, Bitcoin has gained enough momentum to break
the psychological mark of $100,000 within the year end. BTC is just $13,000
away from the $100K mark.
Bitcoin Spot ETFs saw a consistent increase since the elections with net
inflows standing at nearly $2 billion in just a week. The growing acceptance of
spot ETFs simplify the investment process for institutional players and
traditional investors, who can now easily gain exposure to Bitcoin without
directly holding the asset. This steady inflow into ETFs is one of the major
driving factors for the price action in BTC’s price and over the next few
weeks, more funds from institutions will move to ETFs contributing to the next
leg of rally to $100,000.
Historically, bull runs bring a surge in retail
investor activity, and recent data shows a similar trend taking shape. Google
Trends data reveals a noticeable uptick in crypto-related searches, indicating
a gradual return of retail investors to the market. While this recent spike
shows renewed interest, the search volume hasn’t yet reached the peaks seen in
past bull markets, which could mean there’s still plenty of room for the rally
to continue. Notably, retail involvement in this cycle is stronger than ever,
with addresses holding at least 0.001 BTC now making up about 55% of all
addresses—signaling growing adoption among everyday investors.
Strong
Technical Momentum:
Bitcoin’s rally towards $100K is also influenced by its technical momentum. In
recent days, Bitcoin has set multiple new all-time highs, highlighting its
technical strength. The BTC Fear & Greed Index is now at “Extreme Greed,”
indicating high market confidence and buying enthusiasm. Bollinger Bands
(20-period SMA with a 2-standard deviation range) show that Bitcoin is
consistently trading near the upper band, a common indicator of ongoing bullish
pressure. Bitcoin’s trading volume has surged alongside its price, indicating
solid participation from both retail and institutional investors. This momentum
is further strengthened by a spike in long positions on Bitcoin futures, which
have reached $2.8 billion at a price level of $90,000. This strong buying interest
across both spot and futures markets reflects a high level of confidence in
Bitcoin’s upward trend, fueling BTC’s continued rally.
Currently, BTC has strong support at $75,600. If BTC maintains the momentum, it
could likely have another jump to $90K, making its way to the $100K mark by the
end of the year.
Adoption
Ready Infrastructure:
During the past bull runs, retail investors had limited options to start
investing in crypto. Over the past few years, with increasing interest and
evolving tech, retail investors have all the tools handy to enter the crypto
markets. With the confidence given by Trump’s victory, more products and
services will come into the market making investing much simpler and profitable
further bringing more investors, creating increased demand for the capped token
driving up BTC’s price.
What
Should Investors Do Now?
While Bitcoin shows strong potential for further gains, it’s essential to
maintain a clear investment strategy to reduce the risks involved in the asset
class. Do your own research before investing in a token. Keep yourself updated
on news and other updates. For eg; while several indicators suggest Bitcoin
could reach the $100K mark by year-end, geopolitical uncertainties—such as
potential escalations in the Middle East—could still shift market directions.
Building a margin of safety into your investments is key to mitigating
unexpected market reactions and preserving stability amidst volatility.
