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Bitcoin approaches 90K with highest weekly gain

Bitcoin approaches 90K with highest weekly gain

GrafaGrafa2024/11/12 11:00
By:Liezl Gambe

Bitcoin (CRYPTO:BTC) continues its upward trajectory, nearing the $90,000 mark and achieving its best weekly return since the US banking crisis in 2023.

This surge marks Bitcoin’s most significant seven-day performance since the banking turmoil earlier this year.

“Bitcoin has seen its best 7-day return since the U.S. banking crisis on March 18, 2023. Bitcoin’s market cap has grown by a staggering $413bn in the past week!” stated Vetle Lunde, head of research at K33 Research, in a November 12 X post.

Arthur Hayes, the co-founder and former CEO of BitMEX, stated that the turmoil from the March 2023 banking crisis—which led to the collapse of Silicon Valley Bank and the liquidation of Silvergate Bank—served as a catalyst for Bitcoin’s bull run last year.

Hayes emphasised that such financial instability drives investors toward Bitcoin as a safe haven asset.

“It took $4 trillion to decrease the debt-to-nominal GDP ratio from 132% to 115. Let’s say the US reduces it further to 70%, which is where the ratio was in September 2008. Just using a linear extrapolation equates to $10.5 trillion of credit that must be created to accomplish this deleveraging. This is how Bitcoin goes to $1 million because prices are set on the margin,” Hayes predicted in a November 12 blog post.

He suggested that Trump’s economic policies could propel Bitcoin’s price to $1 million.

“As the freely traded supply of Bitcoin dwindles, the most fiat money in history will be chasing a safe haven from not just Americans but Chinese, Japanese, and Western Europeans. Get long, and stay long,” Hayes added, indicating that increasing credit in the US is likely to drive more investors toward Bitcoin.

Quantitative easing, a monetary policy involving the purchase of government bonds to stimulate the economy, has also contributed to Bitcoin’s price rise by encouraging investors to seek higher returns in alternative assets.

At the time of reporting, the Bitcoin price was $88,747.79.   

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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