Bitcoin’s recent remarkable upswing is attracting widespread attention in the market, reaching unprecedented price levels. The primary digital currency has sustained a robust bullish trend in the previous week, soaring by 21.7% and continuously shattering its previous all-time high records.
On 13th November, Bitcoin hit a pinnacle of $93,477 before undergoing a minor correction. Presently trading at $91,079, there has been a slight 2.8% decline from its peak price. Nonetheless, Bitcoin still shows a 4.4% increase for the day.
This surge in price has significantly propelled Bitcoin’s market cap, elevating it to around $1.80 trillion and reinforcing its standing as one of the world’s largest assets.
Furthermore, the broader cryptocurrency market has reaped benefits from this surge, with the global market cap surging by 3.6%, now surpassing $3.15 trillion.
Another notable aspect of Bitcoin’s recent surge is the surge in daily trading volume, which has surged from below $80 billion last week to over $124 billion currently, signifying increased activity and interest among global investors, sparking numerous queries.
Reasons Behind Bitcoin’s Current Surge
One of the key drivers behind the recent surge in Bitcoin’s value is the growing belief that a new bull market cycle is commencing. This sentiment has been reinforced by the recent victory of Donald Trump as the 47th president of the United States.
As a vocal supporter of Bitcoin, Trump has made several commitments during his campaign that favor cryptocurrencies, such as the potential establishment of a national BTC reserve. His perceived backing of the crypto industry has instilled optimism within the community, resulting in a surge of investment activities.
The anticipation of more favorable cryptocurrency regulations and clarity under Trump’s administration has attracted both institutional and individual investors to Bitcoin, contributing to its recent upsurge.
Moreover, the broader acceptance of cryptocurrencies within the market has played a pivotal role.
One significant development is BlackRock’s foray into the realm of cryptocurrencies through its BUIDL Fund, which now encompasses five different blockchains, including Aptos, Arbitrum, Avalanche, OP Mainnet (previously Optimism), and Polygon.
This strategic move by one of the largest asset management firms globally further underscores the expansion and acknowledgement of digital assets like Bitcoin, underscoring the increasing mainstream confidence in cryptocurrencies, bolstering market momentum, and drawing in additional investments.
Market Indicators
Several crucial Bitcoin metrics have also reflected positive trends, underpinning the recent surge in price and providing insights into the question, “Why is Bitcoin surging today?”
Data from Glassnode has shown a spike in Bitcoin’s active addresses, serving as a barometer of retail interest and market engagement.
On 12th November, active addresses peaked at 998,000 before moderately dropping to 865,000 on 13th November. This upsurge contrasts significantly with the figures from the previous month when active addresses had fallen below 700,000.
The rise in active addresses demonstrates increasing retail involvement, hinting at heightened interest and demand for Bitcoin.