BTC went from $81,000 to almost $90,000 in a matter of hours.
ETFs, Bernstein’s recommendation and other factors influenced the rise.
Yesterday bitcoin (BTC) experienced an unprecedented bullish rally. The digital currency increased its value by $8,343 in a single day, thus reaching the largest upward movement recorded for this financial asset.
The event broke the record previous set on February 8, 2021, when the price of BTC rose $7,576 in one day. Yesterday, BTC started the day around $81,000 and, by the close, it had touched the $90,000 barrier, marking a new all-time high. This represented an increase of 10.3%, as can be seen in the following table prepared by Galaxy Research:
The bullish momentum began from the close of Sunday, November 10, with a price of $78,400, which implied a total increase of 15% in that short period of time.
As shown in the chart below, provided by TradingView, after touching $90,000, bitcoin experienced a correction to $85,100, then rebounded and remained above $87,000 at the close of this report.
What motivated the rise of bitcoin?
The notable rise of $8,343 in a matter of hours could be explained by several key reasons, including the Capital inflow into bitcoin exchange-traded funds (ETFs).
These investment funds received a massive influx of capital yesterday, with a total inflow of $1.11 billion. The BlackRock ETF, known as IBIT, led with inflows of $756 million, setting a new record, as CriptoNoticias reported earlier.
Spot bitcoin ETFs traded in the United States influence its price by increasing demand for the asset. This is because the issuing firms keep BTC in treasury as backup for the funds. Therefore, if there is high demand for ETFs, issuing companies must buy BTC. Likewise, if there is greater supply than demand, issuing companies can sell BTC to redeem investors.
Another factor that could have promoted the increase in bitcoin is the recommendation of the asset manager with $725 billion under management, Bernstein. That firm yesterday urged its clients to buy BTC “as soon as possible” and welcomed the bull market in bitcoin and cryptocurrencies.
That firm’s analyst, Gautam Chhugani, recommended those who have been reluctant to invest in cryptocurrencies due to regulatory concerns, to “invest in their mental model,” considering Donald Trump’s electoral victory in the United States.
That is precisely the other factor that seems to catalyze the increase in the price of BTC. And since last November 5, when Trump won the US presidential election, there has been an “injection of enthusiasm” among investors and the community. due to its promises of a more favorable environment for cryptocurrencies.
Specifically, since last November 5, BTC has increased by 35%, going from USD 66,600 to USD 89,950, according to CoinMarketCap. This is a demonstration that investors are expectant about Trump’s promises and what it could mean for the bitcoin market, with more American companies and individuals They will see this currency as a reserve of value and means of paymentanticipating a more permissive legal framework with the arrival of the Republican.
This historic price increase, of more than $8,300 in a matter of hours, not only reflects the inherent volatility of bitcoin, but also its growing acceptance as a legitimate and potentially valuable financial asset in the global economic panorama.
So far, Bernstein’s projections have come to fruition. One of them, that bitcoin would reach USD 90,000 if Trump won the presidential election. That same company sees bitcoin costing $200,000 in 2025, and up to $1 million in 2033, as reported by CriptoNoticias.
