Bitcoin Hits $109K All-Time High as Trump Promises Pro-Crypto Policies

Bitcoin (BTC) has reached a record price of $109K , driven by strong market optimism and surging interest in decentralized finance (DeFi). 

The cryptocurrency saw a 2.72% increase in the past 24 hours and a 17.60% rise over the past week.

Record Trading Volume and Market Activity

Bitcoin’s 24-hour trading volume reached $110.37 billion, reflecting the heightened activity in the digital asset market. In the same period, $1.24 billion in liquidations occurred, with $911.23 million coming from BTC long positions and $330.22 million from shorts. 

Data from CoinGlass revealed $137.26 million was liquidated in the last four hours alone.

The market’s volatility has been accompanied by renewed predictions from analysts. Trader Jelle commented on the bullish trend: “Bitcoin broke out from the descending triangle, retested it — and bounced straight to new all-time highs.” 

He suggested the current breakout could push the price to levels in the mid-$130,000 range.

Trump-Themed Meme Coins Drive Speculation

The launch of meme coins related to President-elect Donald Trump, including OFFICIAL TRUMP (TRUMP) and Melania Meme (MELANIA), has stirred controversy within the cryptocurrency space. 

Critics have described these coins as potential pump-and-dump schemes due to their rapid price increases.

TRUMP surged by 30.88% in the past 24 hours, while MELANIA climbed 60.42%, attracting speculative interest despite skepticism from market participants. The timing of their launch, ahead of Inauguration Day, has added to the public discourse surrounding their legitimacy.

Bitcoin’s DeFi Sector Sees Exponential Growth

The decentralized finance (DeFi) sector on Bitcoin’s network, referred to as BTCFi, has shown growth in recent months. 

Total value locked (TVL) within the sector surged from $307 million at the beginning of 2024 to $6.5 billion, representing a 2,000% increase.

The Babylon protocol has emerged as a key player in this growth, accounting for 80% of the sector’s TVL. This expansion has bolstered Bitcoin’s appeal as a platform for financial innovation, beyond its traditional use as a store of value or payment method.

Analysts Forecast Higher Bitcoin Prices

Some market observers believe Bitcoin’s rally is just beginning. Samson Mow, a prominent Bitcoin advocate, has maintained that the cryptocurrency remains undervalued. 

He suggested Bitcoin’s breakout could mark the start of a long-term price surge, with potential targets of $500,000 in the short term and $1 million in the future.

The recent price movement has also been associated with what traders refer to as a “God Candle,” a term used to describe sharp upward movements on the price chart. 

https://twitter.com/Excellion/status/1881234317181059434

Mow’s forecast reflects growing confidence in Bitcoin’s ability to maintain its upward momentum as institutional adoption and market participation continue to grow.

Bitcoin’s performance and its evolving use cases signal an active and dynamic start to the year for the cryptocurrency market.

FAQs: