Bitcoin’s recent price surge has been attracting significant attention in the market, reaching unprecedented levels as the leading cryptocurrency maintains a strong bullish momentum. Over the past week, it has climbed by 21.7%, repeatedly breaking its previous all-time high.
On 13th November, Bitcoin peaked at $93,477 before experiencing a minor correction. Currently trading at $91,079, there has been a slight 2.8% drop from the highest point. Nonetheless, Bitcoin remains up by 4.4% for the day.
This surge in price has propelled Bitcoin’s market capitalization to around $1.80 trillion, further solidifying its status as one of the world’s largest assets.
Furthermore, the broader cryptocurrency market has also experienced growth, with the global market cap increasing by 3.6% to surpass $3.15 trillion.
One notable aspect of Bitcoin’s recent surge is the significant increase in its daily trading volume, which has surged from under $80 billion to over $124 billion. This surge in volume indicates heightened activity and interest from investors globally, raising various inquiries.
Reasons behind Bitcoin’s Price Increase
One of the primary drivers of Bitcoin’s price surge is the growing belief that a new bull run cycle has commenced. This sentiment was further strengthened by the recent victory of Donald Trump in the presidential election.
As a vocal supporter of Bitcoin, Trump’s campaign promises in favor of cryptocurrencies, such as the potential establishment of a national BTC reserve, have fostered optimism within the crypto community. This has led to increased investment activity.
Anticipation of more favorable crypto regulations and clarity under Trump’s administration has attracted both institutional and retail investors to Bitcoin, contributing to its recent upward momentum.
Additionally, the increasing adoption of cryptocurrencies across the market has also played a significant role.
A notable development is BlackRock’s expansion into the crypto sector through its BUIDL Fund, now spanning five different blockchains, including Aptos, Arbitrum, Avalanche, OP Mainnet (formerly Optimism), and Polygon.
This strategic move by one of the world’s largest asset managers further validates the growing acceptance of digital assets, including Bitcoin. It indicates rising mainstream confidence in cryptocurrencies, reinforcing market momentum and attracting additional investments.
Market Insights
Several key metrics related to Bitcoin have shown positive trends, supporting the recent surge in price and addressing the question of why Bitcoin is up today.
According to data from Glassnode, there has been a notable increase in Bitcoin’s active addresses, serving as an indicator of retail interest and market activity.
On 12th November, active addresses peaked at 998,000 before slightly declining to 865,000 on 13th November. This surge represents a significant rise from the levels observed last month when active addresses were below 700,000.
The uptick in active addresses signals growing retail participation, indicating heightened interest and demand for Bitcoin.