Key Points
- Bitcoin achieved a new all-time high of $109K, fueled by anticipation of Trump’s return to the White House.
- The surge is also linked to a 2000% increase in Bitcoin’s decentralized finance sector in 2024.
Bitcoin, the world’s largest digital asset, reached a new all-time high of $109,114.88. This milestone was achieved shortly after Bitcoin regained a $2 trillion valuation. At the time of reporting, Bitcoin’s value was $108,062.83, marking a 2.74% increase in the past 24 hours, according to data provided by CoinMarketCap.
The surge in Bitcoin’s value is largely due to the anticipated return of Donald Trump to the White House. The President-elect has vowed to implement pro-crypto policies and develop new regulatory frameworks for blockchain and crypto assets.
Trump’s Impact on Crypto
In the lead-up to Inauguration Day, Trump’s team launched two meme coins named OFFICIAL TRUMP (TRUMP) and Melania Meme (MELANIA). These coins have drawn criticism from digital asset market participants, with some labeling them as pump-and-dump schemes. In the past 24 hours, TRUMP and MELANIA have seen significant increases in value, rising by 30.88% and 60.42% respectively.
Bitcoin’s record-breaking value can also be attributed to a remarkable 2000% increase in the network’s decentralized finance (BTCFi) sector in 2024. The Bitcoin staking protocol Babylon accounted for a massive 80% of the total TVL. The BTCFi sector began the year with a TVL of just $307 million, which soared to a high of $6.5 billion.
Market Liquidations
Another noteworthy event in the digital asset space is the liquidation of $1.24 billion in the past 24 hours. This includes $911.23 million in BTC longs and $330.22 million in BTC shorts. Data from CoinGlass shows that $137.26 million was liquidated in the past four hours alone.
Bitcoin Price Analysis
A look at the weekly chart shows that Bitcoin’s uptrend remains intact. Accumulation levels have been extremely high since 2023 and saw a significant increase after the approval of spot exchange-traded funds (ETFs) in the United States in early 2024. The Relative Strength Index (RSI) for Bitcoin’s price action reads a value of 66.48, indicating that the bulls are in control. The line’s gradient suggests that higher prices are likely, possibly reaching $120,000.
The MACD indicator shows that the MACD line (blue) remains above the signal line (red), suggesting an increase in buying pressure in the market. The histogram’s intensity is also gradually increasing after a 117.45% jump in BTC’s trading volume in the past 24 hours.
