Bitcoin (BTC) is continuing its bullish momentum, nearing the $90,000 mark and posting its best weekly return since the US banking crisis of 2023. As of Nov. 11, the cryptocurrency surpassed $85,000, briefly touching new record highs before stabilizing around $88,879 as of 8:14 AM UTC. This represents a 29% weekly gain, marking the best seven-day performance for Bitcoin since the dramatic events of March 2023, when the US banking sector was rocked by the collapse of Silicon Valley Bank and the voluntary liquidation of Silvergate and Signature Banks.
According to Vetle Lunde, head of research at K33 Research, the recent price surge has led to an increase in Bitcoin’s market cap by $413 billion in just one week. The banking crisis in 2023 triggered a flight to safety, boosting Bitcoin’s popularity and sparking its subsequent bull run.
Bitcoin’s Rally: Trump’s Economic Policies Could Lead to $1 Million Price
Bitcoin’s latest price surge comes amid a broader risk-on sentiment following Donald Trump’s victory in the 2024 US Presidential Election. Arthur Hayes, co-founder of BitMEX, believes that Bitcoin is poised for even greater gains, with potential to reach $1 million per coin.
In a Nov. 12 blog post, Hayes pointed to Trump’s anticipated quantitative easing (QE) policies as a driving force. He explained that the US would need to inject an additional $10.5 trillion into the economy to bring the debt-to-GDP ratio down to pre-financial crisis levels. This massive increase in credit, Hayes argues, would push more investors toward Bitcoin as a safe-haven asset, driving up its price significantly.
According to Hayes, as the supply of Bitcoin dwindles due to its capped total supply and increasing demand for the asset, Bitcoin could become the go-to hedge against global inflation and economic instability. He further notes that with global liquidity injections from central banks, Bitcoin’s value could continue to rise as investors seek alternative stores of value.
Key Takeaways:
- Bitcoin has surged nearly 30% in one week, marking its best weekly performance since the March 2023 US banking crisis.
- The ongoing rally is fueled by Trump’s election and anticipated economic policies, including quantitative easing, which may push Bitcoin toward $1 million.
- As central banks globally pump liquidity into markets, Bitcoin is increasingly viewed as a safe-haven asset amidst inflation fears and a shrinking supply.
The combination of political, economic, and monetary factors is driving Bitcoin’s continued bullish trajectory.
