Bitcoin Set to Surpass $77K: Factors Driving the Surge

Bitcoin (BTC) continues to reach new heights, recently surpassing $77,000 on November 8, driven by optimism in the crypto industry following Donald Trump's victory in the U.S. presidential election.

Other cryptocurrencies are also experiencing significant gains, with Ethereum's ether (ETH) recently exceeding $3,000 for the first time since August.

Strong Momentum in Bitcoin's Rally

Interestingly, rather than experiencing a sell-off, Bitcoin has consistently broken through previous highs of $76,400 on November 6, $76,900 on November 7, and $77,200 on November 8. This pattern is mirrored in gold and U.S. equities, which are also achieving new highs, indicating the strength of the current rally and its potential for continuation.

Low Google Search Interest

The ongoing Bitcoin rally may have room to grow due to several factors. Notably, Google search interest in Bitcoin remains relatively low compared to previous peaks in November 2021 and March 2024. Although there has been a slight uptick in searches over the past week, current interest levels suggest that the market is not yet experiencing euphoria.

Profit-Taking Remains Below Historical Highs

Recent monitoring of profit-taking activities reveals that while investors are cashing in as Bitcoin's price rises, the amounts realized are significantly lower than in previous bull runs. For instance, on November 6, following the U.S. election, $3.5 billion in profits were taken as Bitcoin jumped from $68,000 to $76,000, with an additional $3.2 billion over the next two days. In contrast, profit-taking reached $10 billion in March when Bitcoin broke its 2021 record, and it peaked at around $6 billion during the 2021 bull run.

Inflation-Adjusted Prices

When considering inflation adjustments from the U.S. Bureau of Labor Statistics, Bitcoin's all-time high of approximately $69,000 in November 2021 would equate to about $78,000 in today's dollars. This indicates that Bitcoin's current price is still below what investors might expect based on inflation-adjusted values.