Guess what? Bitcoin fever is back with a vengeance! The digital currency has skyrocketed past the $80,000 mark, and everyone is buzzing about it. Google searches for Bitcoin have shot up like a rocket, reflecting the growing fascination with this digital goldmine.
The excitement is through the roof, especially since Donald Trump’s surprising win in the US presidential election. His campaign rolled out the red carpet for crypto, sparking a massive rally in Bitcoin and beyond. Once a crypto skeptic, Trump has done a 180, unveiling plans for a national Bitcoin reserve and promising to put an end to harsh crypto regulations. Although this reserve might take a while to become reality—think 2025—the crypto community is already dreaming big about Bitcoin becoming a staple in the treasuries of corporations, governments, and big institutions.
Experts are pointing to the explosion in search interest and market inflows as the dawn of a new wave of retail investors diving into the Bitcoin bandwagon. What’s fascinating is that Bitcoin's meteoric rise is happening without the usual rollercoaster of volatility. Thanks to some savvy profit-taking on long call options, the market has been riding this high with calm confidence. According to QCP Capital, the market was more than ready for this bullish momentum, breaking out of its long-standing range and hitting new highs in what can only be described as a “euphoric” phase.
Bullish vibes are strong, with perpetual funding rates and basis yields soaring to levels not seen in months. However, QCP remains cautiously optimistic, aware of the potential for short-term hiccups, particularly from leveraged washouts. Historically, these spikes in basis yields have been fleeting.
So, what’s next for Bitcoin? The market expects prices to settle around current levels for the time being, with volatility taking a back seat as everyone watches for major economic updates this week. Keep an eye out for the US CPI on Wednesday, PPI on Thursday, and Fed Chair Jerome Powell’s speech on Friday, which might just give us a hint about a possible December rate cut. Stay tuned!
