The flagship cryptocurrency, Bitcoin, has reached a new all-time high after just breaking the $86k mark. The global crypto market has enjoyed a significant rally post the U.S. election that saw Donald Trump emerge as the winner. The effect has been favorable for the market given Trump’s stand on cryptocurrencies. But this latest surge appears to have been triggered by another factor.
Notably, the total crypto market capitalization has also increased to new highs following a 6.89% surge to $2.9 trillion at the time of writing. Other top cryptocurrencies like Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE) are also recording impressive gains.
Bitcoin Price Breaks $86K
According to on-chain data, Bitcoin is currently trading at $86,141, representing a 7.20% increase in the last 24 hours. Importantly, the rally does not appear to be fading anytime soon as its trading volume has skyrocketed to $100.7 billion.
Over the past seven days, Bitcoin has enjoyed a 27.4% increase and a 37.2% jump in the last 30 days. However, the leverage market has experienced heavy turbulence as over $700 million worth of positions has been liquidated.
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Source: CoinMarketCap
Notably, long traders have suffered most of the liquidations, underscoring the risk of trading with high leverage. Excessively high leverage can result in quick liquidations even in visibly upward markets.
Reasons Why Bitcoin Price is Up Today
The recent market trajectory has sent excitement across the market as 100% of Bitcoin investors are in profit. This has also increased the FOMO in the market as new investors are rushing in with the exciting news. What then is the reason for the recent upsurge?
President Trump’s victory positively impacted the crypto market last week but today’s surge is triggered by another factor, the latest Microstrategy Bitcoin purchase. Known as the largest corporate Bitcoin holder, Microstrategy continues to set the pace for others to follow. Earlier today, the firm announced a staggering Bitcoin purchase, adding 27,200 BTC, valued at $2.03 billion to its portfolio.
The press release catalyzed a buying spree as investors flocked in, grabbing more Bitcoins for the long term. The latest purchase brings the total Microstrategy BTC holding to over $23 billion. Amid the latest purchase frenzy, the company disclosed its plan to increase its holding to $43 billion. Microstrategy’s confidence in the future trajectory of Bitcoin has pushed the firm to turn to the coin as a store of value.
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Victor Swaezy
Victor Swaezy is a crypto-journalist with more than 3 years of experience in covering blockchain technology and digital currencies news. Known for his comprehensive reporting, Victor has contributed to leading industry publications such as Coinfomania and Crypto News Guru, providing market participants with the required knowledge to make informed decisions. When he is not working, he loves to watch movies and have a good time.