Bitcoin US Demand Soars As Coinbase Premium Index Suggests Further Upside Post-Election

Bitcoin has surged by 7.7% within the last 24 hours following Donald Trump’s win within the US election. This victory has sparked a positive market response, with BTC breaking above its all-time high and reaching recent price levels, fueling excitement amongst investors. Many speculate that this could possibly be only the start of a bigger rally.

Key data from CryptoQuant shows a pointy increase in US demand for BTC, which aligns with the market’s optimism. The Trump win, together with the anticipation surrounding the Federal Reserve’s upcoming decision on rates of interest, is adding further momentum to Bitcoin’s bullish trend.

These aspects will likely drive more institutional and retail investors into the market, pushing demand even higher.

As Bitcoin continues to trade in uncharted territory, all eyes are on how the market reacts to those macroeconomic events. If BTC can maintain its upward trajectory, we could see more explosive growth in the approaching days. Nevertheless, with volatility expected to proceed, market participants should stay cautious and closely monitor key developments.

Bitcoin Surges As Trump Wins

Bitcoin has finally broken above its previous all-time high of $73,974, reaching a recent peak at $75,400. This surge was driven by the joy following Donald Trump’s win within the US election, with many investors expecting a pro-crypto agenda under his leadership. Trump’s vocal support for cryptocurrency has sparked renewed optimism available in the market, fueling Bitcoin’s price rally.

Nevertheless, in keeping with key data from CryptoQuant, the surge in Bitcoin’s price isn’t solely attributed to Trump’s victory. Their evaluation highlights a positive spike within the Coinbase Premium Index, a robust indicator of rising demand for BTC within the U.S. Coinbase, the biggest cryptocurrency exchange within the country, plays a major role in gauging investor sentiment. 

Bitcoin Coinbase Premium Index Spikes | Source: CryptoQuant on X

A spike on this index reflects a growing appetite for BTC from U.S. investors, signaling a continued bullish trend.

As Bitcoin continues to consolidate near its recent highs, the subsequent few days will probably be crucial in determining the subsequent phase of the rally. An enormous rally could follow if BTC can maintain its current momentum and break above the consolidation zone, potentially driving the value even higher.

With strong demand from U.S. investors and the positive broader market sentiment, Bitcoin’s bullish outlook stays intact. The joy surrounding Trump’s win and the continuing surge in demand indicate that the market is poised for significant growth in the approaching weeks.

BTC Enters Price Discovery

Bitcoin is trading at $74,600 after breaking past its all-time high of $73,974, set in March. This surge has pushed the value into uncharted territory, a phase that typically signals the beginning of an enormous rally for BTC. 

BTC breaks above ATH and tags $75K
BTC breaks above ATH and tags $75K | Source: BTCUSDT chart on TradingView

Nevertheless, to substantiate the breakout and sustain the bullish momentum, BTC must close above the previous all-time high or, on the very least, above the $70,000 mark. A solid confirmation would suggest the rally is removed from over and will set the stage for further gains.

Despite the positive momentum, the subsequent few days are expected to be highly volatile. Given the unpredictable nature of the market, BTC could experience a pullback to lower demand levels around $69,300. This potential dip could possibly be a shakeout for high-leverage trades and permit the market to recalibrate before pushing higher.

Traders and investors will closely watch the value motion to find out whether BTC can hold above key support levels in the approaching days. The market’s response to volatility and continued investor demand will likely set the tone for the subsequent phase of Bitcoin’s price motion.

Featured image from Dall-E, chart from TradingView

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