Bitcoin has once again captured global attention with a staggering surge, briefly surpassing $93,000 in November 2024. This unprecedented rally has reignited debates over its role in the financial world—celebrated by some as digital gold and dismissed by others as the ultimate speculative bubble.
For seasoned traders like Li Feng, a cryptocurrency fund manager with over five years of experience, the market’s volatility demands constant vigilance. On November 13, mid-interview, he abruptly paused to monitor real-time price movements on his trading platform. That day, Bitcoin soared past $92,000, marking a new all-time high.
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The Surge Behind the Surge
Since September 2024, Bitcoin has climbed from around $58,000** to over **$90,000, delivering more than a 50% return in just two months. Year-to-date gains exceed 100%, outpacing traditional alternative assets such as gold (up 24%) and crude oil.
What’s fueling this rally?
1. U.S. Election Impact and Policy Expectations
Market analysts point to the U.S. presidential election as a key catalyst. Following Donald Trump’s victory on November 5, Bitcoin prices surged. During his campaign, Trump voiced strong support for cryptocurrency innovation, proposing that the U.S. establish a strategic Bitcoin reserve—a move seen as a game-changer for institutional adoption.
According to UBS Wealth Management’s Investment Office (CIO), investor confidence was boosted by expectations of pro-crypto regulatory reforms under the new administration. The belief that Bitcoin could gain formal recognition within U.S. financial policy has added legitimacy to its long-term value proposition.
2. Institutional Adoption Accelerates
Beyond politics, institutional capital is flowing into the space at an accelerating pace. BlackRock, one of the world’s largest asset managers, has publicly compared Bitcoin’s investment potential to that of gold. Its entry into spot Bitcoin ETFs signaled a major shift in mainstream finance.
Other companies are following suit. Hong Kong-listed博雅互动 (Boya Interactive) recently disclosed holdings of 2,641 Bitcoins, acquired at an average cost of $54,000 per coin, alongside significant Ethereum positions. These strategic allocations reflect growing corporate confidence in digital assets as part of diversified portfolios.
“Capital and confidence are driving this cycle,” says Huang Jun,特邀 analyst at FXTM. “It’s not just speculation—it’s structural demand meeting macro-level optimism.”
Market Dynamics and Investor Behavior
As prices climb, so does public interest. Online communities focused on crypto trading have multiplied since September, drawing in both novice investors and seasoned traders.
Li Feng’s fund, launched in mid-2023 when Bitcoin traded below $25,000**, now manages over **$2 million in assets across Hong Kong-based compliant funds. With roughly half allocated to Bitcoin, the fund has achieved an 80% cumulative return.
Operating 24/7 due to the non-stop nature of crypto markets, Li Feng’s team uses a rotating shift system to ensure continuous monitoring—highlighting the intensity required to navigate such volatile conditions.
In contrast, individual investor Zhu Wei takes a solo approach. After increasing his exposure during Q1 2024 amid rising prices, he experienced firsthand the risks of leveraged trading: recent market swings triggered margin calls and partial liquidations.
“Getting wiped out overnight is common in this space,” Zhu admits. “It’s like walking on a knife’s edge.”
Data from Coinglass reveals sobering realities: nearly 200,000 traders faced liquidation in November alone, with total losses nearing $500 million.
Bitcoin’s Evolving Identity
Born in 2008 as a decentralized peer-to-peer electronic cash system, Bitcoin has evolved into a globally recognized asset class valued at $1.75 trillion—ranking eighth among global assets, ahead of silver.
Yet controversy persists.
Is Bitcoin Digital Gold or Financial Bubble?
Proponents hail it as “digital gold” due to its fixed supply (capped at 21 million coins) and resistance to inflation. Critics compare it to the 17th-century Dutch tulip mania, where speculative frenzy led to catastrophic collapse.
Historically, Bitcoin has endured multiple boom-and-bust cycles:
- 2017: Rose from $1,000 to nearly $20,000 before crashing to $3,200 by early 2019.
- 2020: Dropped to $4,000 during pandemic-driven market turmoil.
- 2021–2022: Fell from nearly $69,000 to $15,000—a decline of over 75%.
Despite these drawdowns, recovery patterns suggest resilience. Each cycle brings higher highs and broader adoption.
Regulatory Milestones: ETF Approvals Signal Shift
A pivotal moment came in January 2024 when the U.S. Securities and Exchange Commission (SEC) approved spot Bitcoin ETFs. In October, it further accelerated approval for Bitcoin ETF options trading.
While the SEC stopped short of endorsing Bitcoin as legal tender, integrating it into regulated financial instruments marks a turning point. According to Citic Securities, this inclusion enhances credibility and paves the way for wider institutional participation.
However, UBS remains cautious, classifying crypto primarily as a speculative instrument rather than a strategic portfolio holding. With an annualized volatility of 78.8% and a correlation of 0.31 with global equities, Bitcoin amplifies risk rather than diversifying it.
Risks You Can’t Ignore
Even amid bullish momentum, experts warn against complacency.
Huang Jun emphasizes: “An upward trend doesn’t guarantee profits.”
Bitcoin has recorded single-day drops exceeding 10–20% multiple times. When combined with leverage—a common practice among retail traders—the risk of total loss increases dramatically.
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Moreover, regulatory stances vary globally. In China, Bitcoin is not recognized as legal tender. Multiple government notices—from 2017 and reinforced in 2021—clarify that virtual currencies lack monetary status and cannot circulate as currency.
KWM Law Firm notes additional challenges: Bitcoin’s anonymity facilitates illicit uses like money laundering and tax evasion. Its lack of standardized valuation also complicates legal enforcement in disputes.
“Domestic investors must understand: Bitcoin is not protected by law in China,” Huang warns.
What Lies Ahead?
As of mid-November 2024, Bitcoin pulled back slightly from its peak, trading near $88,000. Yet sentiment remains optimistic.
With increasing financial product innovation—such as futures, options, and structured notes—more institutional capital may flow into the ecosystem. Combined with favorable U.S. policy signals, many analysts believe a break above $100,000 is within reach.
But timing the market is perilous. Li Feng chooses to hold rather than sell prematurely: “Markets are unpredictable. Selling too early means missing out; holding too long risks deep drawdowns.”
Zhu Wei took a different path—he sold half his position at $89,000. “Preserving capital comes first,” he says.
Frequently Asked Questions (FAQ)
Q: Can Bitcoin really reach $100,000?
A: Many analysts believe so. Institutional inflows, ETF approvals, and macroeconomic tailwinds suggest $100K is achievable—though volatility will remain extreme.
Q: Is Bitcoin a safe investment?
A: No asset with 78% annual volatility is “safe.” Bitcoin should be treated as a high-risk speculative holding, not a core portfolio anchor.
Q: Why do governments regulate Bitcoin so strictly?
A: Due to concerns over financial stability, tax evasion, and criminal use. Its decentralized nature makes oversight difficult without compromising user privacy.
Q: How do I invest in Bitcoin safely?
A: Avoid leverage unless experienced. Use reputable exchanges, enable two-factor authentication, and consider dollar-cost averaging instead of lump-sum buys.
Q: Does Bitcoin have real-world utility beyond speculation?
A: Yes—remittances, cross-border payments, and censorship-resistant savings in unstable economies are emerging use cases.
Q: What happens if I lose access to my wallet?
A: Unlike traditional accounts, lost private keys mean permanent loss of funds. Always back up recovery phrases securely offline.
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