Bitcoin prices continued their upward trend on Monday, December 16, setting their most recent record high as they benefited from very fundamentals.
The world’s most prominent digital currency, which has achieved ever-increasing highs in recent weeks, rose above $107,850, according to Coinbase data from TradingView.
Several analysts have highlighted this wonderful performance, the TikTok influencer named Wendy O.
“As 2024 comes to a close we have a lot of anticipation and hope for a pro crypto president stepping into office,” she stated via emailed comments.
“One basic investigation worth noting is the rumor that Trump will enact an executive order on his first day in the workplace to create a strategic reserve of Bitcoin. This would be done to stabilize the dollar and combat the debt crisis of United States,” the analyst said.
“This news has also sparked rumors that Japan and Russia could continue doing the same to create their own strategic Bitcoin reserve and, with a limited supply of 21 million Bitcoin, this may cause a surprise to the source that sends you prices yet higher,” he added. .
Marc P. Bernegger, co-founder of budget crypto fund AltAlpha Digital, spoke.
“In my opinion, the latest increase in the value of Bitcoin, reaching over $105,000, can be attributed to these key factors: The main driving force is the anticipation of a possible US strategic reserve for Bitcoin, based on comments from the president-elect “Donald Trump suggests the option of building a US strategic Bitcoin reserve similar to its oil reserves,” he said in an email.
“This news has fueled optimism among investors, who hope that this move can increase demand and legitimacy for Bitcoin,” Bernegger said.
“Furthermore, large transactions have pushed Bitcoin off major exchanges, reducing available supply, leading to price increases,” he said. “This weekend alone, over 27,000 Bitcoins were removed from exchanges. »
“Other positive news is the addition of MicroStrategy, a major Bitcoin holding company, to the Nasdaq 100 index,” Bernegger said.
Nasdaq recently announced that the company would be part of the aforementioned index as of December 23.
“This move signifies increased institutional adoption and interest in Bitcoin,” the market observer claimed.
Jacob Joseph, Senior Research Analyst at CCData, presented his perspective, opting for anticipation around the changing American political landscape as well as a few other key factors.
“Sustained momentum since the US election highlights a positive shift in Bitcoin fundamentals as the industry expects a more regulatory-friendly environment for the new US government and strong institutional adoption of the asset,” he said in emailed comments. electronic.
“With the assembly’s expectations of last week’s U. S. CPI figures, the market would possibly be pricing in the expected interest rate cut through the Federal Reserve later this week,” Joseph said, speaking at the policy meeting scheduled for Tuesday, Dec. 17 and Wednesday, Dec. 18. .
“Historically, December has been a favourable month for Bitcoin, with an average return of 9.11% since 2014,” he noted, citing the digital currency’s market history.
“The current rally could also benefit from the ‘Santa Claus Rally,’ a seasonal trend seen in the stock market, where stocks see positive price action in late December,” Joseph said.
Olivier Mammet, head of US OTC trading for Gemini, also spoke to the matter, providing his views on what drove bitcoin’s recent gains.
“A lot of that has been fueled as we get closer to Trump’s inauguration in January,” he said.
“Sunday night’s trend of fluctuations is alive and well and the rapid advance of the $103,000 dominance can be explained by a market at the foot,” the market watcher said.
“We saw perpetual reversal turn negative on some exchanges over the weekend, a sign of an accumulation of short positions that were temporarily liquidated,” he said.
“On Friday afternoon, the Nasdaq also indicated that Microstrategy would introduce the Nasdaq One Hundred Index on December 23rd,” Mammet said.
“We also have FOMC this week, and although a 25bps cut is expected (>90% probability), the market could be positioning for it,” he concluded.
Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether, EOS and SOL.
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