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The total crypto market cap surged by around 3 percent in the last 24 hours, led by Bitcoin (BTC, to hover around $2.91 trillion on Monday, November 11, during the early European session. The cryptocurrency market has signalled the return of the bull market after consolidating in the past eight months.
Moreover, Bitcoin price surged to a new all-time high (ATH) of about $81,800 earlier today, thus registering the largest weekly close of over $14k in length
Factors that Contributed to the Crypto Rally Today
Crypto Short Squeeze
The cryptocurrency market registered palpable gains in the last 24 hours, largely attributed to a major short squeeze. With over $624 million liquidated from the crypto market, more leveraged crypto traders have been attempting to long Bitcoin and the altcoin market to capitalize on the ongoing bullish breakout.
As a result, the crypto market could run further in the coming weeks, fueled by FOMO traders attempting to pump prices higher.
High Demand from Institutional Investors
Ethereum, currently sitting at $3.12K, is finally showing the growth that helped it climb to the #2 ranked market cap asset in crypto, largely staying in this position throughout the past 8 years.
Whale transaction data indicates a major spike in key stakeholder activity.… pic.twitter.com/CWPpeMPWla
— Santiment (@santimentfeed) November 10, 2024
The demand for both Bitcoin and the altcoin market has significantly spiked in the recent past, following the expected crypto parabolic rally. With Gold and major stock indexes having reached a major mid-term resistance level, more investors have been rotating their funds to the crypto market to maximize their profits.
In addition to spot Bitcoin ETFs registering a net cash inflow of over $7.2 billion in the past five weeks, the US spot Ether ETFs registered the highest weekly cash inflow of about $154 million.
Favouring Political and Economic Outlook
An idea whose time has come.
Let’s make it so in the first 100 days. Pass the BITCOIN Act. https://t.co/9CP1FrPZxw
— Cynthia Lummis
(@CynthiaMLummis) November 9, 2024
The cryptocurrency market gained more bullish momentum over the weekend following the positive high-impact news from the United States last week. After the conclusion of the U.S. 2024 elections, more pro-crypto candidates, led by President-elect Donald Trump, won by a huge margin.
As a result, the United States is expected to pass a bill soon to purchase 1 million BTCs over the next five years to counter its national debt crisis, of over $35 trillion.
Meanwhile, both the US Federal Reserve and the Bank of England initiated a quarter cut of the respective interest rates to trigger economic growth in the short term. With China having approved a $1.4 trillion economic boost ahead, the global liquidity is expected to grow exponentially, and potentially impact the ongoing crypto bullish outlook.
