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.
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.
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
Lokesh Gupta is a seasoned financial expert with 23 years of experience in Forex, Comex, NSE, MCX, NCDEX, and cryptocurrency markets. Investors have trusted his technical analysis skills so they may negotiate market swings and make wise investment selections. Lokesh merges his deep understanding of the market with his enthusiasm for teaching in his role as Content & Research Lead, producing informative pieces that give investors a leg up. In both conventional and cryptocurrency markets, he is a reliable adviser because of his strategic direction and ability to examine intricate market movements. Dedicated to study, market analysis, and investor education, Lokesh keeps abreast of the always-changing financial scene. His accurate and well-researched observations provide traders and investors with the tools they need to thrive in ever-changing market conditions.
Copyright © 2025 Coin Gabbar. All Rights Reserved.
