Bitcoin has once again captured headlines, hitting a new peak with its most significant one-day price jump. On November 11, 2024, Bitcoin surged by over $8,400 in a single day, moving it closer to the historic $90,000 mark. This gain, the largest in Bitcoin’s history, was noted by Alex Thorn, Galaxy’s head of research, who posted on X: “November 11, 2024, was the biggest daily gain in Bitcoin history.” Following a previous high of $85,000 earlier that day, Bitcoin’s rebound reaffirmed its position as a major financial player.
This latest leap surpasses Bitcoin’s second-highest daily jump, seen in August 2021, when the price rose by $7,576 in 24 hours. Now, in November 2024, Bitcoin has exceeded previous records, with a weekly gain of over 28%, trading at $88,006 as of 9:56 am UTC..
Why Bitcoin Is Surging: Trump’s Victory and Investor Optimism
One major factor behind Bitcoin’s rise is the recent U.S. presidential election, where Donald Trump’s victory has spurred interest in risk-on assets like Bitcoin. Many analysts anticipate that Trump’s win, along with potential pro-crypto regulations, could push Bitcoin beyond $100,000 by year’s end, adding to the market’s optimism and fueling the ongoing rally.
Bitcoin ETFs Fueling the Rally
The U.S.-based spot Bitcoin ETFs have also played a key role in driving prices upward. On November 11, ETFs saw a net inflow of $1.1 billion, and just days earlier, on November 7, they added another $1.37 billion to their Bitcoin holdings. According to Farside Investors, these large inflows have accelerated Bitcoin’s rally, with institutional investors showing a growing interest. ETFs have made it easier for institutions to invest in Bitcoin, bringing in fresh capital and boosting the market.
Trump’s Policies, Fiscal Stimulus, and Bitcoin’s Path to $1 Million
Trump’s election win may also shape fiscal policies favoring cryptocurrency, adding fuel to Bitcoin’s rise. Arthur Hayes, a leading figure in crypto, recently wrote that Trump’s policies could inject massive liquidity into the economy, potentially driving Bitcoin to $1 million. Hayes highlighted the impact of quantitative easing, noting that to reduce the debt-to-GDP ratio to past levels, the U.S. might need to create trillions in credit, which could increase Bitcoin’s appeal as an alternative investment.
What’s Next for Bitcoin?
Bitcoin’s performance suggests a bullish trajectory, with factors like Trump’s win, ETF inflows, and heightened global interest pointing to continued growth. While the $100,000 mark appears within reach, some even speculate about a potential $1 million valuation. As economic uncertainty and inflation persist, Bitcoin’s growing acceptance by institutions could mark the beginning of a new era in cryptocurrency.
However, as with any investment, caution is essential. While Bitcoin’s outlook is promising, its volatility remains, making it crucial for investors to weigh both potential rewards and risks.
