Bitcoin price nears $90,000. What’s behind the rally and will it continue?

Bitcoin has pushed to a new record, reaching an all-time high of over $89,000 on Tuesday, as optimism around favourable regulatory changes and growing institutional interest fuel the surge. The recent rally in Bitcoin, now nearing $90,000, comes on the back of Donald Trump’s pro-crypto stance following his recent election victory in the US.
Trump has vowed to make the US “the crypto capital of the planet,” promising supportive policies, including the establishment of a national Bitcoin reserve. These pledges have boosted investor confidence, with analysts eyeing Bitcoin’s next major target of $100,000.
Market analysts attribute this surge to a mix of macroeconomic trends and recent policy developments. The U.S. Federal Reserve’s 25 basis points rate cut in November has directed investor sentiment toward alternative assets like Bitcoin.
“If history is any guide, Bitcoin could easily finish the year around $100,000,” noted Kyle Rodda, a senior financial analyst at Capital.com. The rate cut signals an accommodative approach, easing inflation concerns and making Bitcoin more attractive as a hedge.
Bitcoin ETFs have also contributed significantly to its recent gains. Approval of these ETFs earlier this year has allowed institutional investors easier, regulated access to Bitcoin, expanding demand.
Edul Patel, CEO of Mudrex, called the ETF approval a “game-changer,” adding that rate cuts in major economies have also increased cash flow into alternatives like Bitcoin.
Himanshu Maradiya, Founder of CIFDAQ, said the Fed’s rate cut has catalyzed this shift in sentiment, as investors seek out Bitcoin’s unique qualities of scarcity and decentralization.
Meanwhile, Sumit Gupta, co-founder of CoinDCX, pointed to Bitcoin’s $81,000 milestone and $1.5 trillion market cap as indicators of rising optimism. He highlighted growing interest from institutions and the role of Bitcoin ETFs in marking the end of the “crypto winter.”
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
The BTC fear-greed index, now showing “Extreme Greed,” reflects strong investor sentiment, with $2.8 billion in Bitcoin futures betting on the cryptocurrency crossing $90,000. This rally has also lifted other digital assets like Ethereum, which hit $3,200, underscoring Bitcoin’s impact across the broader cryptocurrency market