Bitcoin’s price surge shows little sign of slowing down, nearing the significant $90,000 mark in a rally that could become its strongest weekly performance since the 2023 US banking crisis.
The cryptocurrency recently crossed the $85,000 threshold on Nov. 11 but continued its ascent. As of 8:14 am UTC, Bitcoin is trading at $88,879, up over 29% in the past week.
This impressive weekly gain of nearly 30% represents Bitcoin’s best seven-day performance since the turbulence of the 2023 US banking crisis. Vetle Lunde, head of research at K33 Research, highlighted this milestone in a Nov. 12 post on X, saying:
“Bitcoin has seen its best 7-day return since the U.S. banking crisis on March 18, 2023. Bitcoin’s market cap has grown by a staggering $413 billion in the past week!”
The banking crisis in March 2023 triggered by the collapse of Silicon Valley Bank and Silvergate Bank, and the subsequent shutdown of Signature Bank by New York regulators, fueled Bitcoin’s price rally last year. According to BitMEX co-founder Arthur Hayes, this disruption was a catalyst for Bitcoin’s bull market.
Bitcoin Price on Track to $1 Million Due to Trump’s Quantitative Easing — Hayes
Bitcoin’s rally has intensified following Donald Trump’s win in the 2024 US presidential election, driving renewed investor optimism. With Trump expected to implement more business- and innovation-friendly policies, many investors are embracing riskier assets, anticipating a favorable economic environment.
Arthur Hayes predicts that Trump’s economic strategy could propel Bitcoin’s price to unprecedented heights, possibly even surpassing $1 million. In a Nov. 12 blog post, Hayes explained:
“It took $4 trillion to decrease the debt-to-nominal GDP ratio from 132% to 115%. Let’s say the US reduces it further to 70%, which is where the ratio was in September 2008. Just using a linear extrapolation equates to $10.5 trillion of credit that must be created to accomplish this deleveraging. This is how Bitcoin goes to $1 million because prices are set on the margin.”
With increased credit in the US, more investors are likely to seek safe-haven assets like Bitcoin, Hayes added:
“As the freely traded supply of Bitcoin dwindles, the most fiat money in history will be chasing a safe haven from not just Americans but Chinese, Japanese, and Western Europeans. Get long, and stay long.”
Quantitative easing, a policy where central banks buy government bonds to inject liquidity into the economy, often drives investors toward alternative assets. This influx of liquidity can elevate Bitcoin’s price as investors look for potentially higher returns outside traditional markets.
For more news, find me on Twitter Giannis Andreou and subscribe to My channels Youtube and Rumble
What is your opinion on this particular topic? Leave us your comment below! We are always interested in your opinion!
