In November 2024, Bitcoin hit a historic milestone of $90,000, sparking discussions about a potential new bull market. Let's explore the factors driving this rise.
On-Chain Data Analysis
On-chain data provides insights into Bitcoin's market dynamics in November 2024.
1. Growth in active addresses reached nearly 1.5 million, indicating heightened market activity. 2. Transaction fees increased by 30%, reflecting increased demand and network utilization. 3. Long-term holdings comprise 68% of Bitcoin supply, highlighting holder confidence.
External Market Drivers
Key external influences on the Bitcoin market include:
1. The Federal Reserve's rate cut in September 2024 improved market liquidity. 2. Bitcoin spot ETF approvals solidified Bitcoin's status in traditional finance. 3. Geopolitical uncertainty drives demand for Bitcoin as a diversification tool.
Historical Trends and Risks
Historical data highlights several bullish signals:
1. The 'halving effect' has spurred price increases. 2. The current MVRV ratio suggests potential for further gains. 3. Record high hash rates reflect miner confidence and network security.
Bitcoin's surge past $90,000 marks a pivotal moment for the crypto market. Despite risks like regulatory uncertainty and potential corrections, Bitcoin remains a compelling asset for long-term growth.
