Bitcoin's price growth over the past month has been staggering. The cost of digital gold is already $92,000, and if nothing extraordinary happens in the market, BTC can safely cross the $100,000 mark in November. However, this upward movement of Bitcoin is due not only to the victory of Donald Trump in the US presidential elections and his plan to create a strategic reserve of 1 million Bitcoins. According to analysts, there are several other key factors influencing the cryptocurrency market:
Effect of halving. The last one took place in April 2024, which halved the reward for mining a new block from 6.25 to 3.125 bitcoins. This led to a reduction in the growth rate of the cryptocurrency supply and, as a result, an increase in the price.
The appearance of the first bitcoin ETFs in the US also contributed to the growth of demand for the cryptocurrency. Only during November 12, the total volume of new investments in these funds amounted to $817.54 million. Also, since the beginning of September, BTC has outperformed the S&P 500.
Over 94% of all bitcoins that can be mined are already in circulation or lost forever. This means that there are only about 1.2 million bitcoins left that can still be mined. Such limited supply also puts pressure on the price.$BTC