Bitcoin Surges 30% Post-Election, Reaches New All-Time Highs
Bitcoin (BTC) has increased 30% since the November 5 US election, surpassing its March all-time high (ATH) and achieving new highs daily for a week. Bitfinex analysts report that the market remains stable despite heightened speculative activity.
Bitcoin 'Fair Value' Priced In At Higher Levels
Following Donald Trump’s victory, the crypto market capitalization reached $3.05 trillion, with Bitcoin leading the rally and nearing $90,000. A Bitfinex Alpha report indicates that the price surge reflects investor positioning for potential economic stimulus and regulatory changes.
During March highs, BTC’s realized profit volume peaked at $3.1 billion but has since decreased to an equilibrium level. The report suggests a reset in supply and demand indicates a higher fair value for Bitcoin, continuing its price discovery process.
Profit-taking above $70,000 has been less pronounced compared to previous instances, signaling a new wave of demand, supported by Spot Bitcoin exchange-traded funds (ETFs) buying post-elections. This fresh interest may drive further upward momentum.
BTC Enters 'A New Phase'
The report noted record inflows into BTC ETFs, totaling approximately $2.28 billion in three days, a significant rebound from pre-election outflows. According to CoinShares data, Bitcoin ETFs ended the election week with $1.8 billion in inflows and began the following week with $1.1 billion in positive net flow, indicating renewed demand for Bitcoin as it adjusts to new price levels.
Bitfinex analysts observed that from March to August, there was considerable supply without sustained buying pressure. The recent demand surge suggests a shift where buying interest absorbs selling pressure at all-time highs, stabilizing market dynamics:
We appear to be entering a new phase where profit-taking at all-time highs is lower due to fresh demand absorbing minor selling pressure, indicating a healthier market environment with potential for upward movement.
Open Interest (OI) in Bitcoin futures and perpetual contracts reached an ATH of $45.43 billion, indicating increased speculative activity while maintaining market stability with OI and BTC prices in equilibrium. Bitfinex anticipates potential consolidation, with a possible pullback to $77,000, which would close BTC’s CME gap and strengthen its position for further increases.
As of this writing, Bitcoin is trading at $86,225, marking a 5% increase within the daily timeframe.
