Bitcoin Soared to Nearly $90,000 by Tuesday, Marking a Historic Achievement

After breaking the $80,000 barrier on Monday, Bitcoin soared to nearly $90,000 by Tuesday, marking a historic achievement.

Bitcoin price soared to nearly $90,000 on Tuesday, setting a new all-time high and coming closer to the next target zone.

After breaking the $80,000 barrier on Monday, Bitcoin price surged to nearly $90,000 on Tuesday. This new all-time high was achieved as Bitcoin price rose by about 4% over the past 24 hours.

notably, Bitcoin’s market capitalization has now surpassed that of all above-ground silver. Silver’s total market value is estimated to be around $85 billion, while Bitcoin's market cap has now reached nearly $900 billion.

If Bitcoin can push higher, the next target zone is between $92,000 and $95,000. The exact target will depend on how the price behaves in the coming days.

Rising Institutional Interest in Bitcoin

Several institutional investors have been showing increasing interest in Bitcoin, and this demand seems to be a key factor driving the cryptocurrency's recent rally.

A recent survey by Fidelity Digital Assets found that 74% of institutional investors believe Bitcoin is undervalued, and 90% of respondents said they expect cryptocurrencies to become an established asset class within the next five years.

This growing institutional interest is expected to further support Bitcoin’s price in the coming months.

Bitcoin Faces Initial Resistance at $90K

Analyst Rekt Capital has pointed out some initial rejection of Bitcoin around the $90,000 level. It seems that there are still some traders who believe selling Bitcoin at this price is a smart move.

However, Rekt Capital suggests that these sellers may soon reconsider their stance, implying that the current dip could be temporary and that the broader bullish trend for Bitcoin is likely to continue.

But Why is Bitcoin Soaring?

Bitcoin price has more than doubled since the beginning of 2023 and is now trading at all-time highs. But what is driving this incredible rally?

Here are a few possible explanations:

1. Market Expectations for Pro-Crypto Trump Administration

Several key members of the Trump administration have expressed support for cryptocurrency, including Gary Cohn, Wilbur Ross, and Steve Mnuchin.

This support could lead to clearer regulations and more favorable policies for the cryptocurrency industry. In turn, this could be boosting the price of Bitcoin.

2. Strong Economic Data Fuels Market Optimism

The recent U.S. unemployment rate fell to 3.5%, which is the lowest level since December 1969. This strong labor market data has contributed to a general sense of optimism in the stock and crypto markets.

The market is hopeful that Trump’s policies on tax cuts, healthcare spending, and labor markets will strengthen the overall economy. This optimism is driving positive market sentiment.

3. Investors Anticipate Clearer Crypto Regulations

Another factor is a growing belief that the Trump administration will implement clearer and more favorable regulations for the cryptocurrency industry.

Currently, the U.S. crypto landscape is fragmented, with different states having their own rules. For example, Wyoming has a "digital asset bill of rights," while New York has the "BitLicense" requirement for crypto firms.

Investors are hoping for federal-level clarity on whether agencies like the SEC or CFTC will take the lead in regulating the industry. Clearer regulations could lead to greater acceptance of crypto by large banks, which would, in turn, boost the price of Bitcoin.

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