Bitcoin Rally Pauses near $100k Milestone
Bitcoin’s recent rally towards the historic $100,000 level hit a snag just shy of the mark, causing the digital asset to retreat. After coming within $300 of the six-figure milestone, Bitcoin fell as low as $95,776 on Sunday and struggled to gain traction near $97,000 on Monday, setting a downbeat tone for the wider crypto market.
Investors are feeling cautious as Bitcoin tests the $100,000 level, with some experts noting that bullish sentiment around Bitcoin is reaching an extreme level. The optimism surrounding Bitcoin has been fueled by President-elect Donald Trump’s support for crypto, leading to a surge in the overall value of the digital-asset market by about $1 trillion since his victory on Nov. 5.
While Trump’s incoming administration is seen as a positive force for the crypto market, with promises of friendlier regulations and the creation of a national Bitcoin stockpile, there are still questions about the timeline and feasibility of these initiatives. Market analysts suggest that Bitcoin may experience consolidation around the $100,000 level in the near term before potentially breaking through it.
Recent developments in the crypto market include reports that Cantor Fitzgerald LP is in talks with Tether Holdings Ltd. to receive support for a multibillion-dollar program that would lend dollars to clients using Bitcoin as collateral. Cantor’s CEO, Howard Lutnick, who is also co-chair of Trump’s transition team, has been instrumental in these discussions, raising the possibility of a White House post dedicated to digital-asset policy.
Following Trump’s win, cash has been pouring into US exchange-traded funds that invest directly in Bitcoin, with these products now amassing $107 billion in assets since launching in January. This success points to the growing interest in Bitcoin and highlights the potential for further growth in the crypto market.
Overall, while Bitcoin’s rally towards $100,000 may have stalled temporarily, experts remain optimistic about the digital asset’s long-term prospects, noting that this pullback is a normal part of market dynamics and may present new opportunities for investors in the future.
