As every week, we summarize the last days with Sebastian Seliga from zondacrypto.
Record increase in the bitcoin price
On Wednesday, November 13, 2024, the price of bitcoin exceeded $90,000 for the first time in history, reaching a value of $93,473. This growth was fueled by Donald Trump’s victory in the US presidential election, which increased optimism in the cryptocurrency market. Nevertheless, such dynamic price increases raise concerns about a possible correction. Analysts point to the high level of leveraged positions on the market, which may lead to sudden price drops when investors take profits. The value of open leveraged positions on the cryptocurrency market is nearly USD 100 billion, which poses a risk to market stability.
MicroStrategy Shopping
MicroStrategy announced the purchase of an additional 27,200 bitcoins for approximately $2 billion, which contributed to a significant increase in the value of the company’s shares by more than 25%. Currently, MicroStrategy holds 279,420 bitcoins, which is approximately 1% of the global supply of this cryptocurrency. The company announced further purchases in 2025-2027, which may affect the perception of bitcoin as an investment asset and its price. The company is expected to continue its strategy of increasing its BTC holdings, which could have a significant impact on the market. Recall: Michael Saylor, CEO of MicroStrategy, began purchasing bitcoins in 2020 to protect the value of the company’s assets from inflation that could result from the printing of dollars. He believes that BTC is a better hedge than traditional assets such as gold. Saylor is confident in the long-term growth of bitcoin’s value. He predicts that the price of this cryptocurrency could reach as high as $13 million by 2045, which indicates his optimism about the future of bitcoin.
Market reaction to Fed policy
After comments by Jerome Powell, the chairman of the Federal Reserve, which suggested there was no need to quickly reduce interest rates, the bitcoin price experienced a slight correction. The cryptocurrency’s value dropped by approximately 1.5% – to approximately $88,125. The correction of the exchange rate after the comments of the head of the Federal Reserve was the result of several key factors.
It is worth pointing out that there is no need to lower interest rates. Powell suggested he saw no need to cut interest rates quickly, which worried investors. His comments indicate the stability of monetary policy, which may limit market liquidity and affect the risk appetite among cryptocurrency investors. In addition, there is the market’s reaction to macroeconomic data: Powell’s statement was interpreted as an announcement of the cessation of interest rate cuts, which in the context of rising inflation and signals of a possible recession in the US raised concerns about the future of the market.
Cryptocurrency projects and innovations
Increased interest in new cryptocurrency projects such as Crypto All-Stars and Sponge V2, which are attracting investors with innovative staking and capital raising concepts. These designs have gained a lot of popularity in recent weeks.
Expectations for the future
Experts predict that cryptocurrencies may enter a “golden era” thanks to the favorable regulatory environment announced by the new administration in the US. Bitcoin and other digital assets could reach much higher values in the coming years, which is the result of several key factors.
Donald Trump’s victory in the presidential election brings hope for more friendly regulations for the cryptocurrency sector. Thorn points out that Trump’s team consists of many cryptocurrency supporters, which increases the likelihood of his promises to support the industry being implemented. Added to this is an increase in institutional interest: an improving regulatory framework is expected to attract more institutional investment into the cryptocurrency market. Thorn predicts that traditional financial firms will be more willing to engage in digital assets, which could lead to a further increase in the value of bitcoin.
Bitcoin’s cyclicality
Analyzes indicate that bitcoin is on track to repeat the gains from previous bull cycles. Compared to previous years, current price corrections are milder, which suggests stability and potential for further increases. Many forecasts indicate the possibility of Bitcoin reaching values significantly exceeding previous records in the next 12-18 months. Some analysts predict that the BTC price could even reach $100,000 before the end of 2024.
Summary
These events show the dynamic development of the cryptocurrency market and the influence of economic policy on its formation. Investors should keep a close eye on these changes and their potential implications for future investments. Moreover, significant token unlocks are planned in the coming days, which may affect cryptocurrency prices. For example, on Monday, November 18, 2024, 92.65 million ARB tokens (Arbitrum) and 15.59 million APE tokens (ApeCoin) are scheduled to be unlocked. Moreover, many DeFi and NFT projects are planning significant updates and new token releases in the coming weeks, which could attract additional investor interest and increase market activity.
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