n the early Asian trading hours of November 21st, 2024, Bitcoin exceeded the $98,000 level for the first time in history. This comes a long way from its yearly low of $39,507 on January 22nd.
This price explosion marks a huge success for Bitcoin and is, in fact, a part of a wider trend of market optimism and institutional adoption which has consolidated approx. $900B in gains since Trump's victory in the November 5 elections.
According to data from CoinGlass, the amount of liquidations in the past day has reached over $100 million with the majority coming from long trades.
Institutional Adoption and Market Dynamics
The growing demand for digital assets by institutions has increased influence on the surging price of Bitcoin. The new demand was driven by the introduction of Bitcoin Options ETFs alongside the bullish sentiment from Donald Trump's win and expectations of lesser regulatory restrictions in crypto.
November 19th, 2024 saw the first Bitcoin Options ETF go live with the leading product from BlackRock Bitcoin Trust and similar products from Grayscale and Bitwise. These initiatives have together, placed Bitcoin as a key asset for institutional adoption.
Price Movements and Predictions
Considering that Bitcoin has gained more than 100% in price since the year's beginning and an additional 40% during November alone, analysts have predicted a $100,000 high to be achieved before the close of the year and $200,000 before the close of 2025.
Going by its recent gains and upward momentum, observers believe it is still in "price discovery," a suggestion that the crypto market is seeking its intrinsic value. Hence, funding rates of Bitcoin remain constant even during its explosive surge.
Long-awaited changes in the political environment, coupled with positive market sentiments, have brought positive flows into crypto, stocks, and bonds. Still, traders should be very careful and follow the market closely for any changes that might alter the future of crypto.
