November 14, 2024 - Despite a dip in the cryptocurrency sector during the session, a rebound was observed post-market. $MicroStrategy (MSTR.US)$ shares rose 3.11% to $328.38, $Coinbase (COIN.US)$ shares rose 2.64% to $284.72, and $MARA Holdings (MARA.US)$ shares rose 2.26% to $21.70 in post-market trading on Wednesday. This swing comes amid heightened optimism and speculation regarding Bitcoin potentially reaching the $100,000 mark soon, a scenario bolstered by a series of events and market dynamics.
Bitcoin experienced a remarkable surge in Wednesday's trading session, briefly breaking through the $93,000 threshold before retreating.
The resurgence in bullish sentiment followed a brief pause, gaining momentum when Donald Trump's victory in the U.S. presidential election was confirmed. The market responded positively, with Bitcoin not only surpassing the significant $90,000 barrier but climbing to an all-time high of $93,483.
Financial inflows into the sector have been robust. Earlier in the week, inflows into the U.S. spot Bitcoin ETF surpassed $1 billion, indicating strong and sustained interest from institutional investors. Wall Street's optimism, fueled by Trump's commitment to heavily back the cryptocurrency sector and his aim to transform the U.S. into a global crypto hub, has played a significant role. Speculators are betting on a more relaxed regulatory environment and anticipate the establishment of a cryptocurrency reserve fund to support ongoing demand.
High-profile financial experts have also weighed in on the potential of Bitcoin. Michael Novogratz, CEO of Galaxy Digital, proposing that Bitcoin could rival gold as a reserve asset within a decade. However, he also noted the low probability of Bitcoin becoming a reserve asset itself immediately, suggesting a more cautious long-term outlook.
Despite the potential for further gains, some market skeptics caution that a lot of positive news may already be reflected in Bitcoin's current price. Additionally, rising U.S. bond yields and the strengthening dollar, which translate into higher borrowing costs, are unfavorable for risk assets like cryptocurrencies.
From October 12, Bitcoin has been on a strong uptrend, marking a year-to-date increase of over 110%. Unlike in instances when Bitcoin reached all-time highs, traders and investors are not inclined to cash in their gains, indicating a strong belief in the cryptocurrency's value appreciation in the coming days and months. According to Glassnode, there is room for further price increases before potential demand exhaustion sets in.
