Cryptocurrency investors are excited about the latest surge in Bitcoin's price, which occurred just days after the U.S. elections and was driven by positive market sentiment towards the digital currency industry.
As the price of Bitcoin, this digital currency, rapidly approaches the much-anticipated $90,000 mark, long-term holders of this first cryptocurrency are now beginning to take an interest in Bitcoin.
$90,000 is just around the corner
Data shows that BTC prices continue to soar, and analysts are confident that it will reach the $90,000 level faster than expected.
Just days after Donald Trump returned to the White House, Bitcoin's price has been rising due to the new government's favorable treatment of the cryptocurrency industry.
Bitcoin's price first broke through the $87,000 mark, reaching $87,198, more than double the $37,000 from 12 months ago. Subsequently, Bitcoin's price slightly declined on Monday.
On Tuesday morning, Bitcoin's price hit a new all-time high again, reaching $89,804, with a total market capitalization of an astonishing $1.77 trillion. This leading crypto asset experienced a slight decline as long-term holders began to act.
At the time of writing, the price of Bitcoin is $88,800. On Monday, Alpha Coin hit a new all-time high. On Bitstamp, the BTC price is $89,899.
Analysts also pointed out that as the BTC price rises, its daily trading volume is increasing, currently valued at $133 billion.
Bitcoin: Domino Effect
Analysts stated that the positive sentiment towards Bitcoin has also created a domino effect across the entire cryptocurrency industry.
Its price surge has also pulled up the prices of other digital currencies worldwide.
CoinGecko reported that the global market capitalization of cryptocurrencies rose by 4.7% in the past 24 hours, currently reaching a historic high of $3.11 trillion.
Additionally, the cryptocurrency market has experienced a massive growth of $765 billion in the past week.
In another report, cryptocurrency analysts stated that crypto-related investment products set a record for the highest inflow into the virtual currency so far this year, amounting to approximately $31.3 billion, with total assets under management reaching $116 billion.
'Trump Rally'
Matt Simpson, a senior market analyst at City Index, referred to the recent price movements in the cryptocurrency market as the 'Trump Surge', explaining that many investors are betting that the Trump administration will pave the way for greater adoption of cryptocurrencies.
Meanwhile, other analysts believe that the positive sentiment in the cryptocurrency market is driven by the prospects of a deregulated industry.
Ron Temple, chief market strategist at Lazard, stated that the new U.S. president promised to fire the current SEC chairman Gary Gensler on the first day of taking office.
The U.S. Securities and Exchange Commission has been pushing for stricter regulations on cryptocurrencies, a move criticized by cryptocurrency investors and entrepreneurs.
