The price of Bitcoin is expected to cross the $80,000 mark, propelled by support for digital currencies from Donald Trump, who is about to take office as the President, and the increasing number of pro-crypto lawmakers in Congress. The price forecast implies that on November 10th, bitcoin managed to reach an all-time high of $79,771, after a weekend build-up that liquidated a 280 million dollar short position across exchanges. Bitcoin also enjoyed a 4.3% increase in price over the 24-hour period further extending its weekly gains to more than 16% thanks to two main reasons, election of Trump and the 25 basis points rate cut by the United States Federal Reserve.
Why do Weekend Rallies Matter in the Crypto Market?
The increase in the price of bitcoin during the course of the last weekend underscores the importance of weekend cuts, which is why they are much encouraged with a low institutional trading volume investor making the market highly responsive to individual retail investors. This kind of rally is also appreciated as it looks at only small and amateur investors and not just the big institutions, which indicates that there is a great deal of interest in cryptocurrency.
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Trump Decides to Support Bitcoin and This Signals a Change of the US Crypto Position
During his campaign, he called for the United States to help lead the world in digital assets, partly by creating and storing a bitcoin reserve and installing bitcoin-friendly policies. Bitcoin has performed year-to-date nearly 90% significantly driven by the demand for crypto ETFs based in the U.S and cuts in the Fed’s rates which has been higher than other asset classes such as equities and even gold.
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