Crypto investors are once again positive, expecting Bitcoin (BTC) to break all-time highs amid volatile trading ahead of the inauguration of pro-crypto President-elect Donald Trump on Jan. 20.
The price of bitcoin, the biggest cryptocurrency, has risen 11% from Monday’s lows under $90,000. It has jumped nearly 3% in the past 24 hours, topping $100,000 at one point, CoinDesk data show.
The move to six figures, which boosted risk-taking in the broader market, came after a weaker-than-expected core CPI report that eased hawkish Fed fears that had driven prices down. Instead, markets are focused on Trump’s swearing-in and a possible pro-cryptocurrency announcement on his first day in office.
“Removing inflation fears paves the way for Bitcoin to break through the strong $100,000 resistance point ahead of Trump’s inauguration,” Matt Mena, crypto research strategist at 21Shares, said in an email. “Such a step would only be psychologically significant, but also technically significant, allowing Bitcoin to surpass its all-time high of $108,000 and set new all-time highs as market optimism strengthens. “21Shares is one of the largest issuers of crypto-native products. traded on the stock exchange (ETP) in the world.
“Trump’s well-documented support for pro-growth policies and his record of helping asset value appreciation increase the bullish outlook for bitcoin and risk assets in general,” Mena wrote.
This bullish forecast is consistent with a rally in classic assets, particularly the Nasdaq 100, which rose more than 2% on Wednesday. BTC recently strengthened its positive correlation with the high-tech index to succeed at its point in two years.
Meanwhile, the rally in the dollar index, which gauges the greenback’s value against major fiat currencies, has stalled, offering a lifeline to risk assets, and the S&P 500 has neared the key level of 6,000.
According to Mena, a break above 6,000 “could pave the way for the next level of the global asset bull market. “
Trump, who was once skeptical of virtual assets, courted the crypto network in the months leading up to the November election, promising to create a national strategic Bitcoin inventory. His victory helped propel BTC to over $108,000, emerging from $70,000 to over $108,000.
“If Trump indicates on day one that he will create the Bitcoin Strategic Reserve, even if he doesn’t indicate it on day one, let’s expect the value discovery to be asymmetrical,” Nathan Cox, chief investment officer at Two Prime, said in an email. “Once it breaks above the previous high of $108,000, there is no limit to how temporarily it can grow given the unprecedented call for a Bitcoin reserve strategy that it may have globallyArray. “
Two Prime is an SEC-regulated registered investment advisor specializing in virtual asset derivatives.
Paul Howard, senior director at crypto market-making firm Wincent, said that the expected announcements related to the regulation of the virtual asset sector, banking regulations, and the creation of the Bitcoin Strategic Reserve are not yet fully integrated.
“We are set for a volatile week with the replacement of administration in the United States and anticipate movements of +/- 10% in majors such as BTC, SOL, ETH and XRP. “Prices will reflect the effects of new investor announcements, Mr. President, so the opportunities, and probably not all, are priced in today,” Howard said.
Omkar Godbole is a Co-Editor of the CoinDesk Markets team founded in Mumbai, holds a Master’s degree in Finance and is a Chartered Market Technician (CMT). In the past, Omkar worked at FXStreet, writing research on foreign exchange markets and as a core analyst on the FX and commodities desk at brokerages founded in Mumbai. Omkar owns small amounts of bitcoin, ether, BitTorrent, tron and dot.
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