Bitcoin Skyrockets Above $86,000, Why is BTC Up Today?

Bitcoin’s price keeps surging today, reaching a new all-time high above $86,000. The most recent surge seems to be propelled by the announcement of MicroStrategy’s latest BTC buy, among overall positive market sentiment.

Bitcoin Price Soars Above $86,000

BTC is surging today, charting gains of more than 6.8% in the past 24 hours and is closing in on 30% for the week.

At the time of this writing, it is trading at above $86,000, charting a brand new ATH at $86,626.

Source: TradingView

This has also led to considerable turbulence in the derivatives market, where almost $700 million worth of leveraged positions were wiped off.

Interestingly enough, despite the fact that BTC is ripping, most of the liquidations are coming from long traders.

Source: CoinGlass

This is incredibly telling of the dangers of trading with high leverage. Even during up-only markets like the current one, excessively high leverage can lead to quick liquidations because of the tremendous volatility of the prices.

Why is the BTC Price Up Today?

Perhaps the most obvious reason for the broader crypto rally is Donald Trump’s election as the 47th president of the United States. He’s made a number of very important promises during his campaign and the onus is now on him to make good on them.

The more specific reason for Bitcoin’s rally in the last 48 hours, however, is likely the fact that MicroStrategy bought another $2 billion worth of BTC.

That’s right, the firm bought 27,200 BTC at an average price of $74,463. Funnily enough, the company is already up by more than $300 million on its latest investment alone.