Bitcoin (BTC) Sets New Record High Above $89K, But Analysts Warn of Short-Term Price Correction

Bitcoin (BTC) briefly rose above $89,000 in trading on Tuesday before correcting to $87,000 during a wild trading session, where the asset increased its 7-day gain by more than 32%, according to CoinDesk, UNN reports.

Bitcoin (BTC) rose briefly above $89,000 in trading on Tuesday before correcting to $87,000 during a wild trading session, where the asset increased its 7-day gain by more than 32%, according to CoinDesk.

The volatility has led to liquidations of almost $700 million in cryptocurrency-tracked futures, affecting both long and short positions (or bets on higher and lower prices, respectively). These cumulative losses are the highest since early April, when BTC briefly crossed its previous peak of over $73,000.

BTC is up more than 7% in the last 24 hours after an unusually upbeat weekend, carrying over sentiment for higher prices following Republican Donald Trump's victory in the US presidential election last week.

A Republican victory could lead to an increase in the total capitalization of the cryptocurrency market to $10 trillion by the end of 2026 from the current $3 trillion, with a target price of $100,000 by the end of this year, banking analysts said.

However, traders warn of a short-term price correction and also predict a slower growth from current levels to $100,000.