This rally can be traced back to early August, when bitcoin briefly fell below $50,000. After regaining momentum towards the end of the month and confirming higher lows and highs by October, the market entered an undeniable uptrend.
Key factors fuelling this upward phase include the favourable interest rate cuts in September and the US presidential election results. With Donald Trump's victory, his pro-crypto stance, including discussions about creating a strategic reserve for bitcoins, has boosted confidence among crypto investors.
On election day, bitcoin was trading at $67,000. As the results came in, it surpassed its previous all-time record, reaching almost $76,000. In the days following the election, the price of bitcoin surpassed $80,000 and eventually reached a high of $93,500 - a staggering increase of 38% in less than two weeks.
The crypto market has three main drivers right now: increasing liquidity from central banks (mainly the People's Bank of China), falling interest rates via the Federal Reserve, and optimism around Donald Trump's victory.
Any one of these factors alone would be a significant tailwind for the crypto market, but if it manages to achieve all three... this will undoubtedly be the most up-and-down four years in crypto history.
The crazy thing about current crypto price levels is that by all measurables (Google trends, crypto app signups, etc.) retail money has yet to pour in like last cycle. Which means there is still a wave of buyers coming that will lead to even higher prices.