Bitcoin recently reached a record-breaking milestone, soaring past $89,000 and lifting the cryptocurrency market to unprecedented levels, surpassing its previous peak during the pandemic. This rally underscores a growing trend among investors betting on a Bitcoin boom under President-elect Donald Trump.
The world’s largest cryptocurrency has surged approximately 32% since the U.S. election on November 5, reaching an all-time high of $89,599 on Tuesday. This pushed Bitcoin’s market cap to an impressive $1.735 trillion, marking a major achievement that ranks Bitcoin as the world’s eighth-largest asset by market capitalization.
Bitcoin briefly peaked at $89,517 before experiencing a slight dip, though it still gained 9% in just one day. This recent increase in value is largely attributed to the rising interest from institutional investors and the high demand for Bitcoin exchange-traded funds (ETFs). Throughout 2024, Bitcoin has more than doubled in value, driven by significant ETF investments in the U.S. and favorable moves from the Federal Reserve, including interest-rate cuts.
This year, Bitcoin has managed to outpace silver twice, first in March and again now. Over the past week, silver’s market capitalization has dropped by 6.24%, settling at $1.732 trillion, while Bitcoin has surged by 30% in the same period. However, it still trails far behind gold, which holds a market cap of $17.65 trillion, remaining over 10 times larger than Bitcoin.
The rally is also fueled by changing dynamics in U.S. politics, as pro-crypto lawmakers gain influence, boosting optimism within the cryptocurrency market. Investors see Bitcoin as a viable alternative to traditional investments, drawing attention from those seeking diversification in a fluctuating economic landscape.
El Salvador, a pioneer in national Bitcoin adoption, has also seen its Bitcoin holdings appreciate significantly, with profits surpassing $119 million as the cryptocurrency hits its new peak. The “Bitcoin Industrial Complex,” comprising major industry players like MicroStrategy and Coinbase, recorded a remarkable $38 billion in trading volume, reflecting an expanding confidence in the asset.
Positioned just behind major assets like gold, Apple, and Microsoft, Bitcoin is cementing its role as a serious asset for global investors. In the options market, some investors have even begun placing bets on Bitcoin reaching the $100,000 milestone before the end of the year, according to data from the Deribit exchange.
Further signaling the worldwide momentum for Bitcoin, the Indian government is actively considering a national Bitcoin policy as part of broader cryptocurrency regulations. Officials are encouraging the country’s fintech sector to collaborate with regulators, paving the way for Bitcoin and other cryptocurrencies to be offered on licensed platforms.
