Highlights:
- Bitcoin price is gaining momentum after crossing the $80k mark
- Current bullish momentum puts $90k within reach in the short-term
- Expectations around Trump make $90k an easy target short term
Bitcoin has continued its exemplary performance since Donald Trump won the election. In the last 24 hours, Bitcoin has rallied by 2.73% to its current price of $81,449.33 when going to press. Trading volumes are also rising, an indicator of the rising activity level around Bitcoin. In the last 24 hours, Bitcoin trading volumes have increased by 62.37% to stand at $78.38 billion.
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Futures and Options Markets Predict Higher Bitcoin Prices
Market sentiment indicates that Bitcoin could be headed much higher than its current price. Open interest in futures trading predicts that the price could reach $90k. The total value of futures projecting $90k BTC has now hit $2.8 billion on the Deribit exchange.
Options are also quite bullish on their expectations around Bitcoin. Call options are in high demand while being bought at a higher rate. K33 Research’s Vetle Lunde highlighted the increased returns on offshore derivatives, suggesting that traders have a greater appetite for risk.
Nearly $1.2bn worth of open interest was added to CME yesterday – biggest daily USD change ever, by far! pic.twitter.com/yj961S89Ud
— Vetle Lunde (@VetleLunde) November 7, 2024
A driving factor to this rising optimism remains the success of Donald Trump in US elections. His pro-crypto pledges could rocket Bitcoin price to even higher prices. Among his promises are a national crypto stockpile and a looser monetary policy. At the same time, crypto companies such as Coinbase and Robinhood have been reported to have experienced significant stock gains throughout the week, indicating improvement in the sector. Based on the last few trends, Trump’s inauguration might see Bitcoins trading at $100,000, especially if Trump holds to his crypto promises.
Elon Musk US Debt Fears Further Fueling Bitcoin
Elon Musk is also helping fuel the momentum around Bitcoin as he continues to issue warnings about the US debt. Musk, an open supporter of US President-elect Donald Trump, is alarmed by the perils of America’s rising debt and the US government’s lightweight approach to the matter.
He shared his thoughts on X, where he stated that current American government spending is on an unsustainable path. Excess government expenditure is pushing America towards the economically dangerous path of bankruptcy, he posted. He quoted Senator Rand Paul, a Bitcoin backer who stated that annual deficits of 2 trillion dollars are not viable.
Excess government spending is driving America into bankruptcy
— Elon Musk (@elonmusk) November 9, 2024
As Bitcoin appreciates, the question arises whether Trump will use Bitcoin as a tool to tackle the issue of national debt. The President-elect during his campaign stated that if the US adopted Bitcoin, America could ‘wipe out’ debt. He even speculated that Bitcoin’s market cap could rival that of Gold. All this further adds to the momentum around Bitcoin currently.
Technical Analysis – Bitcoin Price Action Points to $85K – $90K Short Term
Looking at the charts, there is no major resistance to Bitcoin at this point. In the last few days, Bitcoin has rallied from under $75k to its current price of $81,000.
At this point, Bitcoin price is taking an exponential growth path and could go parabolic as money continues to flow into the crypto market. If the current trajectory continues, $85k is the next target for Bitcoin. A rally through $85k could open the way for Bitcoin to test $90k soon.
Recap
Overall, the Bitcoin price is unlikely to slowdown any time soon. There is a lot of excitement around Trump’s upcoming Presidency that could push the price higher. This includes the potential for Bitcoin to be used as a tool to help the US get around its increasingly unsustainable debt.
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