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Bitcoin hit a new all-time high yesterday, rising to $94,000 and consolidating the bulls’ control over the market. This milestone has led to widespread speculation about the key factors fueling the rally, as Bitcoin continues to dominate headlines and stoke investor enthusiasm.
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Key insights from Ki Young Ju, CEO of CryptoQuant, shed light on the driving forces behind this historic wave. According to Ju, this rally was made possible by Coinbase investors, with US buyers playing an important role. The influx of demand from these investors underlines the growing domestic interest in Bitcoin and highlights the critical influence of US market participants on global crypto trends.
Adding to the excitement, market sentiment appears to be heavily influenced by newly elected President Donald Trump’s pro-crypto stance. His support for digital assets has sparked optimism across the industry, potentially creating a favorable regulatory environment that could support Bitcoin’s growth.
Demand for Bitcoin continues to drive the price
Demand for Bitcoin remains remarkably strong even as miners and long-term holders (LTHs) take profits during this rally. Despite selling pressure from these groups, BTC continues to rise, underscoring the robust market appetite for the leading cryptocurrency. This strength suggests that buyers can easily absorb the distributed supply, fueling Bitcoin’s bullish momentum.
CryptoQuant CEO Ki Young Ju recently shared insightful data about X that highlights the driving forces behind this rally. According to Ju, American investors using Coinbase have played a crucial role in the rise of Bitcoin. He was referring to the BTC Hourly Coinbase Premium (Volume-Weighted, USDT/USD Adjusted), which measures the difference in Bitcoin prices on Coinbase compared to other exchanges.
The premium is currently positive and growing, indicating that US investors are willing to pay more for BTC than their international counterparts. This trend indicates strong demand from US market participants, likely supported by improving market sentiment and potential optimism from regulators.
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If this upward momentum in US demand continues, Bitcoin’s rally could continue in the coming weeks and possibly reach new highs before a major correction occurs. However, as with all parabolic trends, traders and analysts remain cautious as they recognize the possibility of an eventual pullback. The focus remains on Bitcoin’s strength as buyers continue to outpace sellers, driving the market higher.
BTC sets new highs (again).
Bitcoin (BTC) is trading at $93,300, after recently breaking above the all-time high (ATH) of $93,483. While this move marked a new milestone for BTC, the price has since entered a sideways range within a defined uptrend, indicating that demand still exceeds supply. However, the breakout above the ATH lacked significant momentum and looked more like a small spring than a decisive rally. This suggests that bulls may be starting to lose steam.
Nevertheless, BTC’s ability to remain above $89,800 in the coming hours will be crucial. Holding this key support level could pave the way for a rise to $95,000, in line with broader market expectations of continued bullish momentum. Such a move would likely reaffirm confidence among investors, potentially sparking further buying interest as Bitcoin eyes the $100,000 psychological level.
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On the other hand, a decline below $89,800 would change the short-term story. This scenario could lead to a return to lower demand zones around $85,000, where buyers could regroup to push prices back up. As BTC consolidates near its ATH, the market awaits a decisive move to determine if the bulls remain firmly in control or if a temporary correction is on the horizon.
Featured image of Dall-E, chart from TradingView
Credit : www.newsbtc.com
