As a result of the US presidential elections and the potential for a clearer legal framework in the future, Bitcoin has made significant gains since the beginning of November 2024. Having the chance to work with politicians who are friendlier to cryptocurrencies has given the market a much-needed boost, and the BTC price chart shows the results. BTC was worth more than $95,000 on December 23rd, which was a lot more than any of its previous all-time highs.
Despite the positive investor mood, it’s crucial to maintain sound plans and strategies. In fact, it’s more important than ever to be careful when entering the market during times of high instability like this one, as losses are more likely to happen as a result of FOMO and rash decisions.
The breakout
You can expect a lot of different predictions in the Bitcoin space. Many researchers and investors will discuss a market’s current state and future changes. Investors make trades based on these estimates, and since these changes play a significant role in the methods they employ, they have the potential to significantly impact their portfolios. That’s why it’s important to find predictions that are based on research and facts before making a decision. Open interest is one of the metrics that traders have recently found to be of particular importance.
It is usually used to check how liquid and interesting an asset is, and spikes typically mean that breaks are about to happen. The open interest in futures has increased to new all-time high levels, which shows that there is a rise in desire for Bitcoin. A new all-time high for Bitcoin open interest has been reached: over $40 billion. This is more than the previous all-time high of $39.46, which was set in July. When put together with other signs, these numbers show that a breakout is about to happen. One indicator of this is the number of short-term buyers. Since July 24th, 75% of these holders have been steadily making money.
In turn, such an increase will automatically mean that Bitcoin will go up even more and run better. Short-term trades have been used to figure out how much demand there is for BTC among regular people. The market capitalization levels have also been going up, which isn’t easy since BTC is already the cryptocurrency with the highest level of capitalization. It is highly possible that Bitcoin will continue to regain even more market share over the upcoming few months.
Support level
The aftermath of the US presidential election saw Bitcoin hit $75,000. Investors are excited to see where the ecosystem will go next after the victory of the Republican candidate and the election of many crypto-friendly officials. But it’s still important to remember that instability is a big part of Bitcoin dealing. Keeping a close watch on these changes and avoiding the traps of fear of missing out (FOMO) are crucial if you want to continue making money.
Still, it’s important to keep in mind that the price movement will also rest on inflows, with ETF inflows being of particular importance because this new asset class has gotten a lot of attention even before it was officially approved. It’s not unreasonable to expect the trend to continue in the future as well, given the overwhelmingly good results thus far.
Macro summer
Yes, we already know that the summer of 2024 wasn’t the best time for Bitcoin or any other cryptocurrency. However, things may soon change because investors think the market is beginning to change into an economic summer. The aftermath of the Financial Conditions Index typically occurs when a business cycle reaches its lowest point and then begins to rise again. This year, the macro summer could bring a significant rise for Bitcoin as well, allowing it to further solidify its place.
Based on the first study and metrics, the rally could last well into 2025, too. Gold may be on its way to a price breakout too, just like Bitcoin. We often discuss price changes and trends for these two commodities together, which makes sense. Due to its high value and ability to keep value, Bitcoin has even been called “digital gold.” These are traits that make it similar to its predecessor. A new analysis suggests that Bitcoin could soon hit the Banana Zone as well if it is able to maintain its momentum and begin growing as a result of the macro summer.
There is a time when prices are going up very strongly. The cryptocurrency market’s founder coined this term.
The bottom line
It was hard for Bitcoin in Q2 and Q3 2024, but it is still the undisputed leader of cryptocurrencies. The majority of investors believe that BTC is ready to emerge from this slump and expand significantly in the near future. Making history once more as the most important cryptocurrency on the market, it has the potential to break its own records and hit a new all-time high. It’s good for all cryptocurrencies when Bitcoin does well, because other cryptocurrencies always do better when BTC does .
The market is in a favorable place right now for more growth. During this time, investors need to be very careful and give their portfolios their full attention. Fear of missing out can lead people to make unwise decisions when buying, selling, or trading, particularly during market upswings. But the best way to make sure of a steady income is to be careful, patient, and well-prepared.
