Bitcoin has been making headlines recently as its price continues to climb to new record highs. On November 8th, Bitcoin reached over $77,000 for the first time ever, driven by optimism in the crypto industry surrounding the outcome of the U.S. presidential election. This surge in price is not unique to Bitcoin alone, as other cryptocurrencies are also experiencing significant gains. Ethereum’s ether, for example, surpassed $3,000 for the first time since August.
What’s particularly interesting about Bitcoin’s recent price movements is that instead of selling off after hitting new highs, it has continued to break through previous records set on November 6th, 7th, and 8th. This resilience is indicative of the strength of the current rally and suggests that it may have the momentum to continue.
One key factor that could support Bitcoin’s ongoing rally is the relatively low level of Google search interest in the term. While interest has increased in the past week, it is still below the levels seen in November 2021 and March 2024, indicating that we may not have reached a point of market euphoria just yet.
Additionally, data from Glassnode shows that profit-taking in response to Bitcoin’s price surge has been relatively modest compared to previous all-time highs. While $3.5 billion in profits were realized on November 6th alone, this figure is significantly lower than the levels seen during the 2021 bull run. Investors may be holding out for even higher prices before cashing in their profits.
It’s worth noting that despite Bitcoin’s recent price gains, it is still below its inflation-adjusted all-time high. When adjusted for inflation, Bitcoin’s November 2021 record would be equivalent to around $78,000 in today’s U.S. dollars, just slightly above its current price. This discrepancy suggests that investors may be looking for further price appreciation to match or exceed previous inflation-adjusted highs.
Overall, the current price rally in Bitcoin is supported by a combination of factors, including low Google search interest, modest profit-taking levels, and the potential for further inflation-adjusted gains. As the market continues to evolve, investors will be closely watching Bitcoin’s price movements to gauge its long-term potential for growth.