Bitcoin enjoyed one of its best weeks since its creation. The cryptocurrency reached an all-time high of around $99,800, a record that opens the doors to a new chapter. Marked by a number of geopolitical and economic events, the number 1 cryptocurrency experienced a very significant rise, leading it to its highest peak since its creation by Satoshi Nakamoto.
Its value reached $99,849.99 on Friday, November 22, up 8.66% in one week and 47.33% in one month.
How can we explain this increase?
This increase can be explained by a number of financial, economic and geopolitical factors.
First of all, this historic rise is directly linked to the election of Donald Trump as President of the United States. For months, he has regularly mentioned during his speeches that he encourages the use and democratization of cryptocurrencies. His arrival in power has boosted the positioning of these assets among investors, both institutions and individuals, thanks to his presidential promises to loosen regulations linked to digital assets.
Donald Trump’s support for cryptocurrencies has helped create a climate of confidence for all types of investors. They are keen to see crypto-currencies as an important part of the so-called “traditional” economy soon. The relaxation of the relevant laws will be a key step towards the mass adoption of cryptocurrencies, particularly Bitcoin, the asset favored by the general public.
The remarkable rise of Bitcoin also reflects a rise in purchasing power, is this the truth?
After several crises, such as the Covid-19 health crisis, the ensuing global inflation, and geopolitical conflicts, the economy is finally starting to improve, and individuals and institutions alike are beginning to adapt to the economic context.
However, the statistics prove the opposite. Purchasing power in the US, as well as in the Eurozone, continues to deteriorate, even when shares of cryptocurrency investments in portfolios became more important. How can this be explained? It’s simply the growing interest in cryptocurrencies.
Having been subject to much criticism, cryptocurrencies are now one of the main public’s favorite investments. According to Pew Research Center, 16% of Americans are holding cryptocurrencies in 2024.
Another important factor is the Fear & Greed index.
This index has been trending positive for the past two weeks. Its current value is 61 (November 25, 2024). This means that investors are rather optimistic about the market. This index is directly linked to market activity, i.e. a rise in the index indicates a rise in investment and vice versa.
The 100K symbol: what scenarios to expect?
With Bitcoin just a few dollars away from reaching the 100K mark, theories are multiplying. Cryptocurrency enthusiasts are expecting a continued rise and new all-time highs, while others consider the 100K mark to be merely symbolic, and a sharp fall is to be expected at that point.
The questions are multiplying, are governments ready to fully embrace cryptocurrencies in their financial systems? Will regulations be favorable?
