Bitcoin Aims for New Heights as Crypto Market Cap Exceeds $4.21 Trillion
Bitcoin's recent surge nearly reaches $124,000, fueled by U.S. demand and market dynamics.
Bitcoin’s price has surged nearly 14% in just a week, approaching $124,000, bolstered by increased U.S. demand, shifts in the Federal Reserve’s monetary approach, and optimism for a favorable Q4. This impressive rally has also contributed to the total cryptocurrency market capitalization exceeding $4.21 trillion.
Bitcoin one-day chart. Source: Cointelegraph/TradingView
In light of the ongoing U.S. government shutdown, markets seem to overlook the associated uncertainties, and in this context, Bitcoin has thrived, gaining 8% since the shutdown began. Traders have adjusted their positions amid vague policy indications from the government, complicating the Federal Reserve’s decisions as the publication of economic data faces delays.
Bitfinex analysts remarked,
“Bitcoin’s upward movement toward a new all-time high seems genuinely organic… Trump’s consideration of a universal stimulus check could also heighten Bitcoin’s price similar to the reaction observed following Covid stimulus payments.”
They added that any consistent inflows coupled with stable macro data would pave the way for Bitcoin to reach new heights within the coming months.
Onchain BTC buying pressure mounts
Recent onchain data indicates robust demand, as a $1.6 billion buy volume spike across exchanges was recorded within just one hour.
Bitcoin Coinbase Premium Gap. Source: CryptoQuant
When examining price differences between exchanges like Coinbase and Binance, the Coinbase Premium Gap noted a benchmark of $91.86. This suggests strong U.S. demand, as local investors are paying nearly $92 more per Bitcoin on Coinbase.
A price discovery phase is anticipated in the week ahead as Bitcoin hovers near its peak prices. Trader Jelle observed,
“If we can hold $120,000 as support over the weekend, price exploration might resume shortly.”
Despite the substantial demand, there are strong sell orders located at $130,000, marking it as a crucial resistance point. Market analysts urge attention on incoming daily closes to verify if Bitcoin can maintain its upward momentum.
