Bitcoin has rallied past the $80,000 mark, driven by a wave of optimism linked to recent U.S. political developments. The flagship cryptocurrency briefly climbed to $83,000 on Monday—an intraday increase of over 10%—before stabilizing slightly above $80,000. Despite this strong rebound, it remains more than 25% below its record high of $109,000 earlier this year.
Why the Sudden Surge?
This latest price jump comes in response to an announcement by former President Donald Trump, who declared a 90-day pause on new tariffs. The decision sparked widespread rallies across traditional financial markets:
- S&P 500 gained 11%
- NASDAQ jumped 14%
These moves indicate a renewed appetite for risk assets like cryptocurrencies, which often mirror trends in broader equities markets.
Parallels with Past Market Cycles
Analysts at CryptoQuant have drawn comparisons between current developments and the post-2009 period under President Obama. Back then, stimulus measures contributed to a multi-year bull market in equities. Similar sentiment-driven rallies may now be influencing the crypto space.
Network Fundamentals Remain Strong
Interestingly, Bitcoin’s rise isn’t purely speculative. On-chain indicators show:
- Record-high hashrate
- Increased mining difficulty
These metrics suggest that miner confidence remains high, pointing to long-term bullish sentiment beneath short-term price fluctuations.
Future Outlook
CryptoQuant projects that if mining activity and investor confidence persist, Bitcoin’s market capitalization could potentially approach $5 trillion, a substantial leap from its current $1.6 trillion valuation. Analysts warn, however, that upcoming political and economic policy decisions will be pivotal in determining whether Bitcoin maintains its momentum or consolidates further.
Read more from the original article on TradingView News.
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