The world of cryptocurrencies is in turmoil, Bitcoin has just reached a new historic milestone, reaching the milestone. 76 999 dollars or more than 71,000 euros this Thursday, November 7, 2024.
This meteoric rise marks a decisive turning point for the queen of cryptocurrencies, propelled by a series of major events that shook the global economic and political landscape.
The American presidential election, which ended in the unexpected victory of Donald Trumpplayed a catalytic role in this spectacular rise. The return of the billionaire to the White House caused a real tidal wave on the financial markets, with particularly marked repercussions in the world of cryptocurrencies.
A year 2024 marked by growth
Since the start of the year, Bitcoin has experienced a dizzying 116% increase, defying all the most optimistic predictions. This exceptional performance can be explained by several key factors:
- Anticipation of the “halving”, a major technical event in the Bitcoin ecosystem
- Successful launch of Bitcoin ETFs in the United States, attracting institutional investors
- The perception of Bitcoin as a safe haven against inflation
- Trump's commitment to cryptocurrencies
These elements have converged to create an extremely favorable context for Bitcoin, allowing it to shatter its previous record of $69,000 set in 2021.
The Trump effect: a boost for cryptocurrencies
Donald Trump's victory in the US presidential election had a considerable impact on the cryptocurrency market. The new president, once skeptical of Bitcoin, has made a dramatic turnaround in his position.
Trump pledged to make the United States “the bitcoin and cryptocurrency capital of the world,” promising:
- Deregulation favorable to the sector
- Tax incentives for crypto businesses
- The creation of a “strategic national stock of bitcoins”
This pro-crypto stance has galvanized investors, leading to a rush into digital assets. Trump's launch of his own digital currency platform, World Liberty Financialin September 2024, reinforced this trend.
Bitcoin ETFs: a resounding success
The introduction of spot Bitcoin ETFs to the US market marked a watershed moment in the institutional adoption of cryptocurrencies. Financial giants like BlackRock have launched funds which have had dazzling success.
To date, these ETFs have accumulated approximately $69.28 billion, representing almost 5% of the bitcoins in circulation. This massive influx of institutional capital helped stabilize the market and strengthen investor confidence.
A booming market
The euphoria around Bitcoin has had repercussions on the entire cryptocurrency market:
- Ethereum (ETH) climbed 9.87% to $2,673.36
- Solana (SUN) jumped 12.70%, trading at $187.33
- The sector of DeFi (Decentralized Finance) grew by 30%
This bullish momentum was accompanied by massive liquidations of short positions, totaling more than $350 million, which increased the upward pressure on prices.
The dominance of Bitcoin in question
Despite its exceptional performance, Bitcoin's dominance in the cryptocurrency market raises questions. It has reached a critical zone between 60% and 66%, which could herald a potential slowdown.
Some analysts suggest that capital could start to flow into altcoins, as is often the case at the start of a bull run. The memecoin sector, for example, has outperformed Bitcoin over the past month.
Challenges on the horizon
Despite the ambient euphoria, several challenges loom for Bitcoin and the crypto ecosystem:
- The volatility inherent in the cryptocurrency market
- The risks of correction after such a spectacular increase
- Energy concerns related to Bitcoin mining
- Regulatory uncertainties in certain countries
As an example, Russia recently banned Bitcoin mining in some regions due to energy shortages, illustrating the challenges the sector faces.
Outlook and forecasts
Analysts remain divided on the near-term future of Bitcoin. Some predict that the cryptocurrency could reach $100,000 by the end of the year, driven by growing institutional adoption and favorable policies from the Trump administration.
Other experts urge caution, highlighting the possibility of a technical correction:
- A potential rebound around $73,000
- Support levels identified at $73,000 and $71,000
- A possible bearish divergence if the RSI does not exceed 84
The impact on the global economy
Bitcoin's meteoric rise raises questions about its role in the global economy. THE Bitcoin Policy Institute proposed that the United States build up a Bitcoin reserve to diversify its assets and strengthen its economic stability.
This proposal, combined with Trump's commitment to a “strategic national bitcoin stockpile,” could mark a turning point in the perception of Bitcoin as a national store of value.
A new financial order in the making?
Reaching this new all-time high for Bitcoin raises fundamental questions about the future of the global financial system. The convergence between Trump's crypto-friendly victory and the explosion of Bitcoin ETFs could mark the start of a new era for digital assets.
While the world is carefully observing this rise in power of Bitcoin, many questions remain. How will regulators react to this growing adoption? What will be the long-term impact on traditional monetary systems? Will Bitcoin manage to maintain its dominant position in the face of the emergence of new blockchain technologies?
One thing is certain: November 7, 2024 will go down in history as the day Bitcoin crossed a new frontier, paving the way for a future where cryptocurrencies could play a central role in the global economy.
