Bitcoin Closing in on $90K as It Posts Best Weekly Surge Since 2023 Banking Turmoil

Bitcoin is on the cusp of reaching $90,000, with a powerful 29% rise over the week—its best streak since the 2023 banking crisis. The rally follows a shift in market sentiment, with investors anticipating new economic policies under the Trump administration.

Bitcoin’s Rally Strengthens as It Nears $90K Milestone

As it approaches $90,000 in what is turning out to be its strongest weekly run since the US banking crisis in 2023, Bitcoin's advance shows no signs of abating.

Although it was only a momentary pause, the price of Bitcoin exceeded the $85,000 record high on November 11th. According to data compiled by Cointelegraph, the first cryptocurrency is currently trading at $88,879, a 29% increase over the past week. This information was updated as of 8:14 am UTC.

Unprecedented Weekly Gains Since 2023 Banking Crisis

K33 Research's chief of research, Vetle Lunde, said in a post on November 12th that Bitcoin's seven-day gain of roughly 30% is its highest since the US banking crisis in 2023.

During the financial crisis that began in March 2023, two banks—Silvergate Bank and Silicon Valley Bank—voluntarily liquidated their assets. Two days subsequent to Silvergate's liquidation, on March 12, New York regulators compelled Signature Bank to cease operations as well.

Renewed Bull Run Ignited by Economic Uncertainty

According to Arthur Hayes, co-founder and former CEO of BitMEX, this uncertainty sparked Bitcoin's bull run last year.

An increase in risk-taking has contributed to Bitcoin's meteoric rise since Donald Trump's 2024 US presidential victory, as investors look forward to stronger pro-business and pro-innovation policies in the world's leading economy.

$1 Million Bitcoin Forecast Amidst Potential Policy Shifts

Hayes noted in a blog post dated November 12 that Bitcoin's price might potentially surpass $1 million due to Trump's economic policies:

“It took $4 trillion to decrease the debt-to-nominal GDP ratio from 132% to 115%. Let’s say the US reduces it further to 70%, which is where the ratio was in September 2008. Just using a linear extrapolation equates to $10.5 trillion of credit that must be created to accomplish this deleveraging. This is how Bitcoin goes to $1 million because prices are set on the margin.”

Rising Demand for Safe Haven Assets

According to Hayes, more investors will seek out Bitcoin and other safe haven assets as US credit grows:

“As the freely traded supply of Bitcoin dwindles, the most fiat money in history will be chasing a safe haven from not just Americans but Chinese, Japanese, and Western Europeans. Get long, and stay long.”

Quantitative Easing’s Role in Bitcoin’s Price Surge

One kind of monetary policy known as "quantitative easing" involves the purchase of government bonds by a central bank in order to infuse liquidity into the economy and encourage growth.

When central banks infuse liquidity, investors frequently look for higher returns in other assets, which drives up the price of Bitcoin.

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