Cryptocurrency prices are on the rise once again as bitcoin (BTC) reached over $77,000 for the first time following Donald Trump’s election victory. Some altcoins like Cardano (ADA) and Polygon (POL) also joined the rally, with significant gains of 15%. Ethereum’s ether (ETH) also saw a 3% increase, nearing $3,000, as the decentralized finance (DeFi) sector gains momentum.
The broader market, including the S&P 500, is also experiencing positive movement, crossing the 6,000 mark for the first time in history. This comes after Trump’s decisive win in the U.S. presidential election, leading to upbeat equities markets.
Despite the recent price surges, funding rates for perpetual swaps on crypto exchanges are showing neutrality, indicating that there is still room for further price advancement. Market experts like Ari Paul, founder of BlockTower, predict that bitcoin could reach as high as $125,000, with the current market situation being compared to the 7th inning of a bull market. Paul suggests that institutional investors are currently the main drivers of the rally, with retail interest expected to increase as the market progresses.
As the market continues to evolve, active trading may become more profitable in the final stages of the bull run. However, holding onto select crypto assets for the next six to 12 months could also be a strategic move according to Paul. He emphasizes that the final stages of the rally are usually the most parabolic, indicating the potential for even higher price levels in the future.
Overall, the cryptocurrency market is experiencing a period of growth and optimism, with various factors like regulatory developments and institutional involvement contributing to the current rally. Investors and traders are keeping a close eye on market trends and developments to capitalize on the opportunities presented by the evolving landscape of digital assets.
