Bitcoin surges to $89,500, sets new market record

Bitcoin continues its record-breaking rally, surging more than $21,000 since November 5, 2024, to its all-time high of $89,500, lifting the overall crypto market value above its pre-Covid peak. After achieving the current historic milestone, Bitcoin has surpassed a total market capitalisation of $3.12 trillion, edging closer to the size of France's GDP.

Currently, the world's largest digital currency is trading at $88,572.48 (10.18 IST), up 8.78% in the past 24 hours, while Ethereum is up 5.13% at $3,342.30. Other major digital currencies like Solana, BNB, and DOGE are all riding the bullish crypto wave.

"On Nov. 11, a 7% surge in market value was largely driven by Bitcoin, which spiked to $89,500," says the CoinSwitch markets desk.

Crypto equities followed suit, with stocks like Coinbase and MicroStrategy posting impressive gains of 20%-30%. MicroStrategy, in particular, saw a 25% rally, closing at a new all-time high of $340. This surge comes as the company announced acquisition of an additional 27,200 BTC, bringing its total holdings to 279,420 BTC, valued at roughly $24.5 billion.

"The Bitcoin’s dominance is increasing and the market’s Fear & Greed Index sitting at "Extreme Greed," caution is advised," CoinSwitch says.

The homegrown crypto exchange says that given the current market euphoria, traders may want to avoid taking on excessive leverage, as "volatile corrections can follow such rapid upward moves."

Bitcoin’s recent surge past $89,000 marks a historic milestone that aligns with a confluence of market dynamics. "This record-breaking high underscores the renewed interest in digital assets and the confidence sparked by global macroeconomic and regulatory shifts," says Sumit Gupta, co-founder, CoinDCX.

As per Gupta, the $100,000 mark is the "next major psychological milestone" for Bitcoin. He also attributed factors such as MicroStrategy’s significant planned investment in Bitcoin and the influence of U.S. election results, with a pro-crypto administration on the horizon, encouraging both retail and institutional investors to increase their exposure.

"As the world’s largest economy embraces a pro-crypto stance, the broader market is taking notice, and we’re seeing renewed interest from high-value customers and institutions," he adds. CoinDCX says it expects "continued momentum", driven by growing institutional interest and a more favourable regulatory outlook worldwide.

The current Bitcoin milestone underscores the growing confidence in digital assets, says Raj Karkara, COO, ZebPay. According to CoinMarketCap, community sentiment aligns with this rise, with nearly 76% viewing the momentum as "bullish". "ZebPay has also seen a 55% increase in trading volume over the past 24 hours, driven by Bitcoin’s rise and notable activity in other altcoins," he adds.

He agreed that the momentum is expected to continue.

The Bitcoin rally comes as Tesla CEO and billionaire Elon Must urged the upcoming Trump administration in the U.S. to use crypto to address the country's "unsustainable" debt growth. "Excess government spending is driving America into bankruptcy...This debt growth is unsustainable,” he said on X.

Trump, too, has been vocal about his support for crypto. He had promised to "pay off the $35 trillion" worth of national debt by creating a strategic Bitcoin reserve, like the oil or gold reserves. Predicting bitcoin would surpass gold's $16 trillion m-cap, Trump said he would use it to pay off the U.S.’ $35-trillion debt.

"If crypto is going to define the future, I want (it) to be mined, minted and made in the U.S.A...," he said in July this year. Trump's July 27 address at the Nashville Bitcoin Conference, proposed to reserve “100% of all the bitcoins” the U.S. government currently holds.