Bitcoin, the world’s leading cryptocurrency, surged to a record high above $89,000, following a remarkable rally that more than doubled its value from this year’s low of $38,505. Bitcoin hit an impressive $89,447 on November 12, 2024, marking a major milestone in its continued rise.
With this, Bitcoin not only surpassed its prior peak, but also marked a huge rise in its value.
Key Factors Behind Bitcoin’s Surge
With the election of pro-crypto Republican candidate, former President Donald Trump as the President-Elect in the recently-held US Presidential Election last week, there is rising hope that cryptocurrencies can flourish in a crypto-friendly regulatory framework. Consequently, the total value of the cryptocurrency market has also increased to an all-time high of $3.1 trillion.
Says Sathvik Vishwanath, co-founder and CEO of Unocoin, “Bitcoin’s rise to $89,400 marks a significant shift, driven by institutional interest, regulatory support, and the approval of Bitcoin exchange-traded funds (ETFs). This expansion, in contrast to earlier speculative rallies, indicates a maturing market with greater mainstream usage. But as larger asset prices draw more sophisticated attacks, the spike also emphasises the necessity of strong security measures for both individual holders and exchanges.”
Bitcoin’s Bullish Trend And Future Potential
Following the US Presidential Election, Bitcoin has risen by approximately 32 per cent, driven by high demand for ETFs linked to Bitcoin, and optimism about the new Trump administration’s intentions.
Due to speculative trading and enthusiasm over potential pro-crypto policies, the larger cryptocurrency market has also thrived.
Says Anuj Chaudhary, Cardano Lead, India: “With Bitcoin’s current trend, coupled with the diminished supply and the Trump effect, a target of $100,000 may well be within reach. While there can be no absolute assurances, Bitcoin’s historical cycles indicate that it possesses the capacity to surprise.”
Impact On Other Cryptocurrencies
Other cryptocurrencies have also gained from the increase in value of Bitcoin.
For instance, Ethereum rose to $3,371 after Bitcoin set the trend. There were notable jumps in other altcoins as well, such as Cardano and Dogecoin, with Dogecoin rising by 40 per cent. The price of Bitcoin has risen to its highest level since the pandemic, setting new milestones for the cryptocurrency and boosting the industry as a whole.
Due to strong demand for digital assets and the optimism surrounding the future of cryptocurrencies, especially in light of supportive legal structures, the cryptocurrency market is also growing.
Investment Strategies For Bitcoin’s Volatile Market
Investors looking to manage Bitcoin’s volatility should consider to align their financial goals and risk tolerance.
Says Chaudhary: “Bitcoin’s price is immensely volatile, with significant upside potential and substantial risks. If you are comfortable with short-term fluctuations and believe in Bitcoin’s long-term value, particularly its scarcity, it could be a good time to buy. For those who aren’t confident in timing the market perfectly, dollar-cost averaging (DCA) is a sensible strategy. By purchasing Bitcoin at different prices over time, one can reduce the risk of entering the market at a peak and smooth out the impact of price swings.”
