Why Is Crypto Going Up Today, Bitcoin Reaches $90,000 ATH

12-11-2024 By: Lokesh Gupta
Why Is Crypto Going

Why Is Crypto Going Up Today? Key Factors Behind Bitcoin's Rally

Bitcoin and Altcoin Prices Soar: Key Factors Behind the Surge

Bitcoin (BTC) recently crossed its former resistance at $73,000 and has been hitting new all-time highs (ATH) daily. Over the last 24 hours, Bitcoin surged by more than 9%, reaching a peak of approximately $90,000 before slightly retracing to $87,800 during the early U.S. trading on November 12. This rally has ignited bullish sentiment across major altcoins, led by Dogecoin (DOGE), driving the total cryptocurrency market capitalization past $3 trillion for the first time since 2021.

What’s Driving the Bitcoin and Altcoin Rally?

Short Squeeze Impact

A significant factor contributing to the recent price surge has been a wave of short liquidations totaling over $1.2 billion within the last two days. This forced many short traders to cover their positions, fueling a bullish wave known as an institutional-led short squeeze, which further propelled market prices.

Institutional Investment Demand

Another major contributor to Bitcoin’s upward momentum is the increased interest from institutional investors. As Bitcoin's market cap soared beyond $1.74 trillion-the highest in over three years- investors have shifted their assets from traditional safe havens like gold and silver ETFs to Bitcoin. Notably, U.S. spot Bitcoin ETFs saw net inflows exceeding $1.1 billion on Monday alone, with BlackRock’s IBIT ETF receiving above $750 million of that total.

Adding to the bullish trend, MicroStrategy Inc. announced the purchase of 27,000 BTC, valued at over $2 billion, demonstrating strong institutional confidence in Bitcoin.

BITCOIN

Regulatory Developments

Bitcoin’s price has also gained momentum following Donald Trump’s election victory, sparking optimism about pro-crypto regulatory changes. Wyoming Senator Cynthia Lummis indicated that the upcoming administration plans to pass the Bitcoin Act within its first 100 days, positioning Bitcoin as a hedge against potential economic crises.

Moreover, Trump’s nomination of Scott Bessent, a well-known pro-Bitcoin hedge fund billionaire, as Treasury Secretary has further bolstered market confidence.

These factors collectively highlight the convergence of institutional buying, regulatory optimism, and short squeeze dynamics fueling the latest rally in Bitcoin and the broader crypto market.

Also read: Why is Dogecoin price up today: What’s behind DOGE new highs
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