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Elena R
Elena R
Author
Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.
- Nov 12, 2024 05:29 UTC
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Why Is Crypto Going Up Today?
Bitcoin price surged to a new all-time high of $89,560, fueled by institutional demand and short squeezes.
The broader crypto market, led by Dogecoin, also rallied, with the total market cap exceeding $3 trillion.
While the future looks bullish for crypto, high volatility and the current all-time high price suggest caution for new investors.
Since Bitcoin’s (BTC) price crossed the former resistance level around $73k last week, the flagship coin has continued to print a new all-time high (ATH) daily. Bitcoin price surged over 8 percent in the past 24 hours to reach a new ATH of about $89,560, before retracing to $87,930 on Tuesday, November 12, during the early Asian session.
Most of the top-tier altcoins – led by Dogecoin (DOGE) – gained bullish momentum, thus the total crypto market cap rallied above $3 trillion for the first time since 2021.
What’s Fueling Bitcoin and Altcoin Prices?
Rising Impact of Short Squeeze
The recent surge is primarily driven by over $1.2 billion in forced liquidations in the crypto market over the past two days, mainly affecting short traders. These liquidations have pushed many traders to adopt a bullish stance, adding momentum to the market in what’s known as an institutional-led short squeeze.
Institutional FOMO
Demand from institutional investors has also played a major role in Bitcoin’s rally. As Bitcoin’s market cap surpassed $1.73 trillion—the highest it’s been in over three years—some investors in gold and silver ETFs have begun shifting their holdings to BTC.
On Monday alone, U.S. spot Bitcoin ETFs saw a net cash inflow of over $1 billion, with BlackRock’s IBIT ETF receiving $760 million in new investments.
Adding further to Bitcoin’s bullish momentum, MicroStrategy Inc. announced on Monday that it had purchased an additional 27,000 BTC, valued at over $2 billion.
Regulatory Clarity
Bitcoin price has registered bullish sentiment since the victory of Donald Trump as the next U.S. president. According to Wyoming senator Cynthia Lummis, the next US administration will pass the Bitcoin Act to see the country adopt Bitcoin as a hedge against debt crisis within the first 100 days of office.
Meanwhile, Trump has nominated billionaire hedge fund investor Scott Bessent for the position of Treasury Secretary, which is considered very pro-crypto, particularly pro-bitcoin.
At the time of writing, 1 Bitcoin value was $80,945.21
Crypto could continue rising due to strong institutional demand and favorable regulatory signals, but high volatility means prices may fluctuate significantly in the short term.
Bitcoin is at an all-time high, so it may be wise to wait for a minor correction before considering a purchase. Patience could offer a better entry point.
The crypto rally shows no signs of slowing down. Buckle up for an exciting ride.
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