After a brief pause at $99,860 on November 22, BTC/USD reignited its rally in dramatic fashion, fueled by a series of pivotal catalysts that have reshaped the crypto landscape.
Bitcoin’s meteoric rise began earlier this year with the U.S. approval of spot Bitcoin ETFs. These products opened the floodgates for institutional and retail investors alike, providing a regulated avenue to gain exposure to the digital asset.
Over the last three days alone, inflows into Bitcoin ETFs have surpassed $1.6 billion, underscoring strong demand from investors betting on the long-term potential of the cryptocurrency.
Adding fuel to the fire, Donald Trump’s victory in the U.S. presidential election on November 6 unleashed a fresh wave of enthusiasm across crypto markets.
During his campaign, Trump championed cryptocurrency adoption, promising to position himself as the “president of crypto-currencies.” Markets responded accordingly, driving Bitcoin higher in anticipation of favorable policy developments.
As for the factors that triggered the most recent acceleration beyond $100,000, it’s worth recalling that Wednesday saw a number of positive news items, starting with Trump’s announcement that Paul Atkins will replace Gary Gensler as head of the SEC.
Renowned for having a favorable view of crypto-currencies (and ties to the industry via his professional activities), Atkins is a former SEC commissioner, so knows the inner workings of the agency, and is likely to quickly implement measures favorable to the growth of the digital asset industry.
A speech by Jerome Powell also undoubtedly played a role in BTC’s rise above $100K, not only because the Fed boss was generally optimistic about the economic outlook, but also because he specifically mentioned Bitcoin, comparing it to Gold, while refuting that it could become a competitor to the Dollar.
Incidentally, Powell’s speech also caused the major US indices to mark new all-time highs, suggesting that the market’s general risk appetite also played a role in the cryptocurrency’s acceleration.
In the short term, the first question will be whether Bitcoin is capable of retaining the $100,000 threshold, or whether profit-taking is likely to lead to a phase of hesitation around this major threshold.
Undoubtedly, the crossing of this symbolic milestone will lead many long-term buyers to take at least partial profits. However, BTC’s move to a 6-digit quotation could also significantly boost its public profile, and attract new buyers.
Another factor likely to support a further rise in Bitcoin is the possibility of BTC becoming the subject of a strategic reserve in the United States, which would undoubtedly trigger many other countries to emulate the world’s leading economy.
It’s a possibility that currently seems very remote, but it would undoubtedly be enough for Trump to put the issue concretely on the table to trigger a speculative frenzy the scale of which is hard to predict.
From a charting point of view, Bitcoin is now in price discovery territory, and we’ll have to rely on psychological thresholds to define the next targets.
On the downside, a return below $100,000 would call into question the immediate bullish outlook, with the risk of a correction towards initial support around $95,000.
Finally, for those investors more interested in equities, Bitcoin’s breakthrough of $100,000 should also provide some nice opportunities on the stock market, with many companies exposed to cryptocurrencies, either via their treasury, such as MicroStrategy Incorporated (NASDAQ:MSTR), or via their core business, such as Coinbase Global Inc (NASDAQ:COIN).
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Disclaimer: This article is written for informational purposes only; it does not constitute a solicitation, offer, advice, counsel or recommendation to invest as such it is not intended to incentivize the purchase of assets in any way. I would like to remind you that any type of asset, is evaluated from multiple perspectives and is highly risky and therefore, any investment decision and the associated risk remains with the investor.
This article was originally published here.
