Bitcoin’s incredible rally continues, climbing towards $90,000 after a series of bullish catalysts. This surge marks its best weekly performance since the US banking crisis in early 2023.
Bitcoin Rally Accelerates Past $85K
This surge represents Bitcoin’s strongest weekly performance since March 2023. During that time, the collapse of several US banks, including Silicon Valley Bank and Silvergate Bank, acted as a catalyst for the crypto bull run.
Vetle Lunde from K33 Research noted on November 12 that Bitcoin’s market cap jumped by an astounding $413 billion in just one week.
How the US Banking Crisis Fueled Bitcoin’s Rise
The March 2023 banking crisis saw the collapse of major financial institutions like Silicon Valley Bank and Signature Bank. The turmoil forced investors to seek alternatives, turning to Bitcoin as a hedge against economic instability. According to BitMEX co-founder Arthur Hayes, the crisis was a major driver behind Bitcoin’s strong rally.
Trump’s Win Boosts Risk Appetite
Bitcoin’s recent surge gained momentum following Donald Trump’s victory in the 2024 US presidential election. The win has fueled expectations of a more business-friendly environment, driving investors towards riskier assets like Bitcoin. Hayes believes that Trump’s policies could push Bitcoin’s price past the $1 million mark.
In a blog post on November 12, Hayes explained:
“If the US aims to reduce the debt-to-GDP ratio further, it could require over $10.5 trillion in credit creation. This scenario could drive Bitcoin’s price to $1 million, as the market seeks safer assets.”
Liquidity Injections Favor Bitcoin
Quantitative easing, a policy where central banks inject liquidity by purchasing government bonds, often boosts Bitcoin’s price. Increased liquidity pushes investors towards higher-return assets like Bitcoin. Hayes emphasized that the rising supply of fiat money could drive demand for Bitcoin as a safe-haven asset, attracting investors from the US, China, Japan, and Europe.
“With a shrinking supply of Bitcoin and increasing demand, it’s time to go long and stay long,” Hayes advised.
Who’s Better for Crypto: Trump or Kamala?
With Trump back in office, the crypto industry may face new policies favoring innovation and deregulation. This could benefit Bitcoin, pushing its price even higher. However, the political landscape remains uncertain, with Vice President Kamala Harris offering a different approach to regulation.
