Bitcoin is edging closer to the $90,000 mark after recording its largest daily gain in history.
The Bitcoin (BTC) price is nearing the $90,000 record high after staging the best weekly return since the March 2023 banking crisis in the United States.
After surpassing the $85,000 record high on Nov. 11, Bitcoin recorded its best daily gain in history, soaring over $8,400 in a single day, according to Alex Thorn, the head of research at Galaxy, who wrote in a Nov. 12 X post:
“November 11, 2024, was the biggest daily gain in Bitcoin history.”
Bitcoin’s biggest daily moves. Source: Alex Thorn
In comparison, Bitcoin’s second-best daily gain occurred in August 2021, when Bitcoin price rose over $7,576 in 24 hours, from $38,871 to $46,448.
The world’s first cryptocurrency is currently up over 28% on the weekly chart, trading above $88,006 as of 9:56 am UTC, Cointelegraph data shows.
BTC/USD, 1-month chart. Source: Cointelegraph
Some market analysts believe that Donald Trump’s victory in the US presidential election has set the stage for more risk-on asset demand that will take Bitcoin above $100,000 before the end of 2024.
Bitcoin ETFs log second billion-dollar inflow day within a week
The US-based spot Bitcoin exchange-traded funds (ETFs) continue contributing to Bitcoin’s parabolic rally.
The Bitcoin ETFs recorded a cumulative $1.1 billion worth of net positive inflows on Nov. 11 after amassing over $1.37 billion worth of Bitcoin just two days earlier, on Nov. 7, Farside Investors data shows.
Bitcoin ETF flows in US dollars, millions. Source: Farside investors
Following Bitcoin’s rally on Nov. 11, the Bitcoin ETFs, MicroStrategy and Coinbase rose to a record $38 billion in combined daily trading volume, surpassing the previous high of around $25 million set in March.
Trump’s victory catalyzed Bitcoin’s parabolic rally — $1 million BTC price next?
Bitcoin’s price has been on a parabolic run since Trump’s victory, which is widely associated with more favorable crypto regulations and hopes of improving monetary policy.
The incoming Trump administration’s economic policy could push Bitcoin’s price past the $1 million mark, according to Hayes, who wrote in a Nov. 12 blog post:
“It took $4 trillion to decrease the debt-to-nominal GDP ratio from 132% to 115%. Let’s say the US reduces it further to 70%, which is where the ratio was in September 2008. Just using a linear extrapolation equates to $10.5 trillion of credit that must be created to accomplish this deleveraging. This is how Bitcoin goes to $1 million because prices are set on the margin.”
Quantitative easing refers to monetary policy where a central bank purchases a predetermined amount of government bonds to stimulate economic activity through liquidity injections.
Similar liquidity injections often boost Bitcoin’s price by encouraging investors to seek higher returns in alternative assets.
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