November 12, 2024 — Bitcoin, the flagship cryptocurrency, has surged to a remarkable $89,000, driven by a powerful bull run sweeping through the crypto market. The leading digital asset has gained 9.4% in the past 24 hours and an impressive 29.6% over the past week, according to Coingecko data. At its current price of $89,123, Bitcoin is just $1,000 shy of reaching the milestone of $90,000.
The rally began during the United States Election week and intensified after Donald Trump was announced as the winner, triggering massive interest from both retail and institutional investors. Despite the rapid price surge, analysts are sounding alarms, describing the market’s current state as one of “euphoria.” They caution that this exuberance may lead to heightened volatility and a potential price correction.
Azeem Khan, co-founder of Morph, warned that Bitcoin’s crossing of the $85,000 mark signals that the crypto market is in a euphoric phase. “We’re absolutely at the place where euphoria has set into the market,” Khan said, adding that traders should be cautious about further buying in this environment. Khan emphasized that the market’s current state is reminiscent of previous euphoric periods when non-crypto enthusiasts started jumping in.
Analysts from QCP Capital, based in Singapore, echoed Khan’s sentiment, highlighting rising perpetual funding rates and increasing basis yields, which suggest that over-leveraging is occurring. They urged traders to remain cautious and to be prepared for a possible correction.
Bitcoin’s recent rally has taken the market by surprise. Just a few weeks ago, Bitcoin was struggling to break its all-time high of $73,737. Now, the cryptocurrency has not only surpassed this peak but is on the verge of crossing the $90,000 threshold, with analysts speculating that it may reach $100,000 by year-end.
Bitcoin’s market capitalization has also surged, currently standing at $1.7 trillion, giving it a dominance of 55.4% over all altcoins.
While the future remains uncertain, experts agree that the crypto market is in a highly volatile phase. As Bitcoin continues its rally, traders are advised to exercise caution as the potential for price corrections looms large.
