Bitcoin‘s recent surge toward the $100,000 mark has cooled off, with the digital asset retreating slightly after falling just short of the historic milestone. As of early Monday morning in London, Bitcoin was trading at $98,310, recovering from a low of $95,776 reached on Sunday. The rally, which had seen the cryptocurrency come within $300 of $100,000 on Friday, was largely fueled by investor optimism following President-elect Donald Trump’s crypto-friendly stance.
The selection of hedge fund executive Scott Bessent as Trump’s pick for Treasury Secretary has further bolstered market sentiment. However, some analysts are warning that Bitcoin’s price may need to consolidate after testing the $100,000 threshold.
Matt Maley, Chief Market Strategist at Miller Tabak + Co, expressed concerns that Bitcoin’s rally may have reached an unsustainable point, stating that “bullishness around Bitcoin is getting extreme.” Investors are now questioning whether the cryptocurrency has the momentum to break through the six-figure barrier, or if a period of stabilization is ahead.
Trump’s administration is viewed as a potential catalyst for the growth of digital assets, with Wall Street and beyond anticipating a more crypto-friendly regulatory environment. Since Trump’s victory on November 5, the total value of the digital asset market has surged by approximately $1 trillion.
Trump’s Promises and Challenges
Trump’s promises to ease regulations and establish a national Bitcoin stockpile have been met with both enthusiasm and skepticism. While the idea of a Bitcoin reserve excites some, questions remain about its practicality and timeline for implementation.
David Lawant, Head of Research at FalconX, noted a shift in market sentiment as Bitcoin nears the $100,000 mark, adding that “an increasing skew to the sell side” suggests the cryptocurrency could face consolidation before any potential breakthrough above the milestone.
Institutional Interest and Bitcoin’s Mainstream Acceptance
Bitcoin’s surge is also supported by increasing institutional interest. Cantor Fitzgerald LP, a major financial services firm, is reportedly in talks with Tether Holdings to develop a lending program for clients using Bitcoin as collateral. This development comes amid growing speculation about the creation of a new White House post focused on digital assets, further signaling the mainstreaming of the cryptocurrency.
The influx of capital into Bitcoin-focused exchange-traded funds (ETFs) has been significant since Trump’s win, with ETFs now holding $107 billion in assets.
Despite concerns of Bitcoin being “extremely overbought” since the election, as noted by Stephane Ouellette, CEO of crypto investment firm FRNT Financial Inc., the pullback is seen as relatively minor. Ouellette emphasized that the current price is merely a return to levels seen earlier in the week, suggesting that Bitcoin’s long-term outlook remains positive.
With both institutional and retail investors betting on a bullish future for digital currencies, the market will be closely watching whether Bitcoin can reclaim its momentum or whether it will settle into a new phase of consolidation.
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