Originally published on: November 13, 2024
The cryptocurrency market was abuzz as Bitcoin surged by an impressive 16% between Nov. 11 and 13, breaking past the $93,000 milestone for the first time ever. While some traders anticipate a weakening in bullish momentum due to profit-taking by sellers and miners, several key metrics suggest that Bitcoin’s rally remains robust and poised for further growth.
Julio Moreno, the head of research at CryptoQuant, highlighted that certain Bitcoin miners initiated profit-taking activities on Nov. 12, although the level remained within normal limits. This trend was observed among exclusive entities holding 100 BTC or more.
Four essential metrics are indicating a positive outlook for Bitcoin’s price trajectory. These factors include derivatives data, the performance of the US dollar, and recent market movements.
One significant factor to consider is the rise in US Treasury yields, reflecting investor demand for higher returns on fixed-income securities. This development signifies a reduced confidence in the US fiscal position and hints at potential inflation or increased government spending, both of which can dilute the value of Treasury holdings.
Additionally, the strengthening of the US dollar against major currencies like the euro, yen, and Swiss franc was once considered a negative indicator for Bitcoin’s price. However, this inverse relationship is becoming less relevant as the cryptocurrency establishes itself as a valued asset class.
The recent launch of a $54 billion spot Bitcoin exchange-traded fund (ETF) further solidifies Bitcoin’s position as a reliable store of value, attracting more institutional interest and investor confidence.
Furthermore, Bitcoin futures premiums, as well as options skew, provide insight into market sentiment and expectations. Current data suggests a healthy, neutral market sentiment even after a substantial 16% rally in a short period, indicating continued positive momentum for Bitcoin.
With a crypto-friendly US administration and optimistic sentiment in Bitcoin derivatives markets, the path for Bitcoin’s price to exceed $100,000 appears promising. Potential catalysts, such as proposed initiatives to increase US Treasury Bitcoin reserves, could further drive the cryptocurrency’s value higher in the near future.
As investors seek alternative scarce assets like Bitcoin amidst macroeconomic uncertainties, the outlook remains favorable for further price gains. With evolving market conditions and ongoing developments, the crypto market continues to offer exciting opportunities for investors and traders alike.
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Legal and investment decisions should be made based on individual circumstances, and the opinions expressed in this article are personal and do not necessarily reflect those of Cointelegraph. Stay informed, stay ahead, and make informed decisions in the ever-evolving world of cryptocurrencies.