It seems that the positive momentum for cryptocurrencies is set to dominate in the coming phase, driven by several factors, with the most prominent being the election of Donald Trump as President of the United States and his support for cryptocurrencies during his campaign. Furthermore, his team is currently in discussions with the digital asset industry about creating a new position in the White House dedicated solely to cryptocurrency policy. They are in the process of reviewing candidates for this position, which would be the first of its kind in the White House.
But how have the largest cryptocurrencies by market capitalization performed since the market closed on November 4, the eve of the U.S. elections, up to today?
- Bitcoin, the leading cryptocurrency with a current market cap of $1.96 trillion, has risen from $67,818 to $99,500, a new all-time high, representing an increase of about 47%.
- Ethereum, the second-largest cryptocurrency with a market cap of $405 billion, has increased from $2,397 to $3,429, up by about 43%.
- Solana has risen from $157.86 to $264.63, an increase of approximately 68%.
- BNB has risen from $552.50 to $640.06, a growth of about 16%.
- Ripple (XRP) has increased from $0.5030 to $1.4388, representing a rise of about 186%.
- Dogecoin has risen from $0.1581 to $0.4028, up by about 155%.
- Cardano (ADA) has increased from $0.326 to $0.900, a rise of about 176%.
- TRON has risen from $0.1634 to $0.2019, an increase of about 23%.
- Shiba Inu (SHIBA INU) has risen from $0.00001686 to $0.00002529, a rise of about 50%.
- Avalanche (AVALANCHE) has increased from $22.73 to $36.89, up by about 62%.
- Bitcoin Cash (BITCOIN CASH) has risen from $321.50 to $503.48, a growth of about 57%.
- Chainlink (CHAINLINK) has risen from $10.25 to $15.14, up by about 50%.
- Polkadot (POLKADOT) has risen from $3.75 to $6.27, an increase of about 67%.
- Pepe (PEPE) has increased from $0.000007913 to $0.000021847, a rise of about 176%.
- Stellar (STELLAR) has risen from $0.1301 to $0.2924, up by about 125%.
- Litecoin (LITECOIN) has risen from $65.51 to $91.64, a growth of about 40%.
Therefore, we see that Ripple, Dogecoin, Cardano, Pepe, and Stellar have outperformed Bitcoin, indicating widespread momentum and growth in the cryptocurrency market.
As for Bitcoin, its upward trajectory continues strongly, reaching a new all-time high of $99,500 today and currently trading near the $99,000 mark. Bitcoin has risen by about 135% since the beginning of the year, outperforming the Nasdaq 100 (up about 24%), the S&P 500 (up about 25%), and gold (up about 31%).
In addition to Trump’s positive impact on cryptocurrencies and the anticipation of key appointments in the White House, which would legitimize the sector, there are other factors supporting the rise of cryptocurrencies, including:
- Increased risk appetite among investors, not just individuals, but also large institutions, as they add cryptocurrencies, particularly Bitcoin, to their investment portfolios, aiming for diversification and due to strong optimism about the industry.
- A 75 basis point reduction in U.S. interest rates this year, with expectations of further cuts, which could positively impact cryptocurrencies priced in U.S. dollars.
- Fear of missing out (FOMO).
- Continuous liquidity injections into cryptocurrency products for the sixth consecutive week.
- The total assets of Bitcoin ETFs reaching over $100 billion.
- Bitcoin being seen as a safe haven against global economic uncertainty, central bank monetary and fiscal policies, and geopolitical tensions worldwide.
From a technical perspective, indicators suggest that Bitcoin’s price will continue to rise for the following reasons:
- The Relative Strength Index (RSI) is currently at 82 points, which is in the overbought zone, signaling upward momentum for Bitcoin.
- A bullish crossover occurred between the MACD (blue line) and the Signal Line (orange line) in the positive zone on November 6, 2024, suggesting bullish momentum for Bitcoin.
- The DMI+ (Directional Movement Index) is at around 39 points, compared to the DMI-, which is at around 6 points. The large gap between these indicators signals strong buying pressure on Bitcoin. Most importantly, the ADX (Average Directional Index) stands at around 52 points, indicating strong upward momentum.
- The moving averages of 20, 50, and 200 days are aligned in an upward direction, with the 20-day moving average crossing above the 50-day and the 50-day above the 200-day.
The biggest challenge remains reaching the $100,000 mark, after which forecasts suggest a possible journey toward $200,000.
Please note that this analysis is provided for informational purposes only and should not be considered as investment advice. All trading involves risk.
