While global economic uncertainties persist, the crypto market is showing exceptional strength, embodied by Bitcoin which has just reached an all-time high. Thanks to crossing its all-time high at $93,500, Bitcoin continues to captivate institutional and individual investors. This situation takes place in a context where the balance between growing demand, financial innovation and complex macroeconomic signals is shaping the future of the asset.
Record performance and a booming market
Last week, Bitcoin recorded a new weekly high at nearly $93,500, cementing its position as one of the most competitive assets in Q4 2024. Up 30% month-to-date and a quarterly gain that exceeds 40%, this dynamic reflects renewed confidence in the crypto market. According to CoinGlass data, the weekly close of $90,000 marks a symbolic threshold, but also a key milestone in its ongoing bull cycle.
This rise in power is partly explained by the voracious appetite of whales and institutional investors. Since the launch of Bitcoin exchange-traded funds (ETFs), they have accumulated 425,000 BTC, with a 2.18% increase in total supply in less than a year, according to CryptoQuant analysis. The impact on the perceived scarcity of Bitcoin is fueling this price surge, as explains it MAC_D, analyst at CryptoQuant: “the spectacular increases in March and November demonstrate a strong correlation between accumulation and price.”
Economic issues and the outlook for volatility
Beyond the numerical performances, the overall economic situation adds additional complexity. While the US Federal Reserve juggles rising inflation and signals of stagflation, uncertainty over future monetary policy is increasing the volatility of risk assets. These dynamics strongly influence the behavior of investors, who anticipate significant movements as they approach symbolic thresholds such as $100,000.
However, the market faces risks. Fear and Greed Indexes, such as the Crypto Fear & Greed Index, reach extreme levels near 90%, often associated with impending corrections. Additionally, observers warn that surpassing the $100,000 mark could trigger massive liquidations. A rapid climb toward $100,000 could attract eager new entrants, but these moves are often followed by sharp corrections.
The implications of this dynamic are multiple. If the upward trajectory is confirmed, the psychological threshold of $100,000 could be reached quickly, which further fuels the interest of the general public and the whales. However, a short-term correction remains possible, particularly if global financial markets suffer shocks linked to macroeconomic uncertainties, such as the threat of stagflation mentioned by decision-makers at the American Federal Reserve. The next few months therefore promise to be decisive for Bitcoin, between consolidation and new records on the horizon.
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