Bitcoin (BTC), the largest cryptocurrency in the world, has broken the all-time price record, reaching a new peak of $93,521 on Tuesday afternoon (according to data from CoinGecko). This is a new price peak following a strong surge thanks to favorable cryptocurrency policies from President Donald Trump, who has just been re-elected.

1. Bitcoin rises strongly thanks to support from politics

  • The price $BTC increased by $20,000 in just a few days after the US Election Day, thanks to Donald Trump's cryptocurrency-friendly policies. President Trump has committed to supporting the cryptocurrency industry by:

    • Creating a strategic Bitcoin reserve.

    • Enhancing the dominance of the US in the cryptocurrency mining industry.

  • Since Trump won, Bitcoin has been steadily climbing:

    • Election Day: Surpassed the previous peak at $73,737, reaching $74,504.

    • 10/11: Reached $80,000.

    • 13/11: Reached $93,500, setting a new price peak.

2. The market is in a state of 'Extreme Greed'

  • The Cryptocurrency Fear and Greed Index reached a level of 90, the highest in 2024. This indicates that market sentiment is very optimistic, but it also carries risks from excessive exuberance.

  • Bitcoin's market capitalization has now reached $1.85 trillion USD, solidifying its position as the largest cryptocurrency.

3. Predictions for the future of Bitcoin

  • Matt Hougan, Chief Investment Officer of Bitwise, predicts that Bitcoin could reach a value of $500,000 in the future.

  • Michael Saylor, founder of MicroStrategy, believes that the price of Bitcoin will reach $100,000 before the end of 2024. His company currently holds $30 billion USD in Bitcoin, affirming a strong belief in the long-term value of this asset.

Conclusion

The extraordinary price increase of Bitcoin not only reflects support from politics and large institutions but also proves the strong growth potential of the cryptocurrency market. However, with market sentiment at a high level of greed, investors need to be cautious and manage risks appropriately to seize opportunities without falling into the vortex of large fluctuations.