Key Points
- Bitcoin’s trading volume reached a new all-time high, surpassing $145 billion, following its price reaching a new peak.
- Increased retail investor interest, a crypto-friendly environment promised by Donald Trump, and high Google searches have contributed to Bitcoin’s surge.
Bitcoin, the largest cryptocurrency in the world, recently experienced a record-high trading volume after its price hit a new all-time high of $89,956 on November 12.
Record Breaking Trading Volume
A report by Matrixport revealed that Bitcoin’s trading volume soared to over $145 billion within 24 hours, a new peak that stands about 50% above the previous highs seen in August and March this year.
In the later hours of trading, the volume continued to rise, even exceeding $170 billion according to data from Coingecko.
Factors Driving the Surge
Matrixport analysts attributed the surge in Bitcoin’s volume to the growing interest of retail investors, largely influenced by Donald Trump’s recent victory in the U.S. presidential election.
Promising to create a crypto-friendly environment in the U.S., Trump aims to make the country the “crypto capital of the planet”, establish a Strategic Bitcoin Reserve, and replace SEC Chair Gary Gensler. This stance is viewed positively by the crypto sector.
In addition, Google searches for Bitcoin have also significantly risen, reaching a five-year high with a 78% increase, further confirming the public’s growing interest in the leading cryptocurrency.
Spot Bitcoin ETFs also saw a major uptick following Trump’s victory, bringing in over $4.2 billion, which has contributed to Bitcoin’s recent rally to its all-time high.
The analysis by Matrixport suggested that, based on historical trends, the increase in retail trading activity often lasts for several weeks or even months during market upswings. Therefore, it is likely that Bitcoin will maintain its bullish momentum in the coming weeks.
At the time of writing, Bitcoin was down 2.61% from its all-time high, appearing to undergo a typical correction following its recent rally.
However, Bitcoin supporters like Michael Saylor and Arthur Hayes, along with much of the crypto community, remain optimistic, predicting that prices will continue to rise, with targets of $100,000 and beyond.
Previous analyses by Berstein also expressed confidence in their price target of $200,000, due to a crypto-friendlier regulatory environment under Trump and the prospect of a pro-crypto SEC.
One crypto trader on X pointed to a potential bullish pennant pattern forming on Bitcoin’s four-hour chart, suggesting a possible target of $103,000 in the near term.
Meanwhile, Standard Chartered, a banking giant, predicts that Bitcoin will reach $125,000 by January 2025.
However, before its next rise, analyst Rekt Capital anticipates a further correction in Bitcoin’s price. According to the analyst, Bitcoin has only achieved about 50% of its potential gains this bull cycle and expects the peak to be reached around October next year.