Bitcoin’s price has surpassed $100,000 for the first year this year, as traders continue to be buoyed by a tailwind that continues to drive sentiment after last year’s historical run.
According to CoinGecko, at the time this article was written, Bitcoin’s price had reached $101,192, before it began to retrace a bit. It's still well far of its all-time high of $108,135.
The move on Sunday follows nearly three weeks in which the largest digital asset of the world traded below this psychological benchmark, after dropping 5.6% within a day back on December 18th.
Although cryptos and other broader stocks shuddered after the Federal Reserve’s revised dot-plot outlook for future rates cuts was announced in late December the mood is optimistic. Some of last year’s most popular assets are on the verge of a rebound.
Crypto’s trading environment is still a mystery “mixed” The digital asset investment company 10x Research says that the FOMC’s December meeting, and subsequent holidays will likely lead to a rise in the price of digital assets.
“Rather than a continuous rally, Bitcoinappears to be navigating a tactical trading range, presenting opportunities for strategic positioning rather than a straightforward bullish trend,” The firm sent a Sunday note to its investors.
The plan of President-elect Donald Trump to establish a U.S. Bitcoin strategic reserve after his inauguration, on January 20, continues to worry investors.
The proposal involves the U.S. government retaining its current bitcoin holdings—approximately 210,000 bitcoins valued at around $21 billion, primarily acquired through criminal seizures—and potentially acquiring more.
The Bitcoin Act of 2030, introduced by Senator Cynthia Lummis calls on the U.S. Treasury to purchase 1,000,000 bitcoins in five years.
It will be interesting to see if Trump is able to keep his word once he takes over the Whitehouse. Still, experts Decrypt Previous spokespeople said that the prospect of an upcoming president would continue to boost expectations for the first six months of the year.
Stacy Elliott edited this article.