Key Points

1.     Experts warn of "euphoria" in the market, suggesting Bitcoin could reach $100,000 before potentially hitting resistance.
2.     They also highlight Bitcoin scarcity, with low exchange supply levels possibly sparking a short squeeze in the market.

Despite Bitcoin surges past $88,000, rising nearly 11% in the past 24 hours and over 30% in the last week, experts caution that "euphoria has taken hold of the market." This heightened optimism suggests that Bitcoin could potentially hit $100,000 before facing significant resistance.

The recent surge has led to massive liquidations totaling $655.12 million across both long and short positions, sparking discussions about the factors fueling Bitcoin's rally and its future direction. At the time of publication, BTC had reached an all-time high of $88,364.

Data from CoinGlass shows that $341.88 million in short positions were liquidated in the past 24 hours alone.
 

Experts Warn of Potential Correction amid bitcoin surge

Azeem Khan, co-founder of Morph, stated, "Now that Bitcoin has surpassed $85K, we're clearly at a point where euphoria has taken over the market." He warned against additional buying, citing the high probability of a correction in the near future.

Khan pointed to factors like a potential Trump election victory and discussions around changes in SEC leadership as possible catalysts for a push toward $100,000. However, he cautioned, "Where it goes from there is uncertain... Since we're still in the early stages of this euphoria, I'd say we're at a point where even people who usually don’t care about crypto—like our family members—will start asking us what tokens to buy."

Kevin Lehtiniitty, CEO of Borderless.xyz, also shared his perspective with Benzinga, noting that Bitcoin's surge could have a significant impact on stablecoins, which are commonly used as a store of value on trading platforms. As more funds flow into the crypto market due to Bitcoin's rally, stablecoins may experience outflows as traders shift their positions into other tokens.

"With the majority of stablecoin collateral invested in US Treasuries, this will create sell pressure in those instruments at a time when the Fed has just lowered rates," Lehtiniitty said, hinting at potential broader impacts on traditional finance markets.

Eneko Knörr, CEO of Stabolut, attributes Bitcoin's rise to a combination of historical patterns, scarcity, and strategic accumulation by large holders.

Knörr cited the recent Bitcoin halving and low exchange supply as crucial factors, noting, "Sources indicate that today the levels are ridiculously low, which could trigger a short squeeze and send Bitcoin much higher in a short time."

He added that "whales" have been accumulating substantial amounts of Bitcoin, with over 2,000 wallets now holding more than 670,000 BTC.
 

Crypto Stocks Soar Following Weekend Rally

Cryptocurrency prices have surged following Donald Trump's U.S. election victory on Tuesday, as investors expect a more favorable stance on digital assets under his presidency. With Republicans increasingly likely to take control of both houses of Congress, optimism has grown in the crypto market. Bitcoin climbed 27% over the past week, while many altcoins saw gains two to three times that amount.

Crypto-related stocks surged in double digits at the market open, fueled by the weekend's crypto rally, and continued to climb throughout the day. Shares of crypto exchange Coinbase (COIN) soared nearly 20%, closing above $320 for the first time since November 2021. Bitcoin mining companies like MARA Holdings (MARA), CleanSpark (CLSK), and Hut 8 (HUT) saw impressive gains of 25%-30%.

MicroStrategy (MSTR), the Nasdaq-listed software firm with the largest corporate bitcoin treasury, experienced a 25% jump, closing at a new all-time high of $340—surpassing its 24-year-old record from the dotcom bubble era. On Monday, the company revealed it had purchased 27,200 BTC, bringing its total holdings to 279,420 bitcoin, valued at approximately $24.5 billion at current prices.