Bitcoin Rallies With Trump’s Regulatory Reforms On The Horizon
Bitcoin (BTC) has surpassed the $100,000 mark for the first time in two weeks, riding on a recovery momentum this week after Congress predicted Donald Trump’s victory in the US election.
The market-leading cryptocurrency rose more than 4% in 24 hours to $102,500 on Monday, marking a weekly gain of 11%, its highest gain since November 24, according to Bloomberg data.
Bitcoin rally resumes: Surges above $100,000
BTC’s performance in 2024 suffered a deceleration in late December as investors aimed to secure gains. Nonetheless, for a pro-encryption The administration under Trump has revived interest, pushing Bitcoin to a new all-time high of $108,000.
Market sentiment appears upbeat as Congress prepares to meet to confirm Trump’s victory. Khushboo Khullar is a venture partner at Lightning Ventures, investing in Bitcoin-related companies. pointed out that “A supercycle is expected in 2025 due to regulatory changes under the Trump administration. “
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The momentum has also been fueled by a significant surge in Bitcoin exchange-traded fund (ETF) investments. On Friday, investors poured a net $908 million into U.S. Bitcoin ETFs.
This marks the fifth highest inflow Since its launch in January 2024, this follows a historic net outflow of $680 million on December 19.
Another positive indicator for Bitcoin traders is the rebound in Bitcoin’s Coinbase premium, which measures the price difference between Bitcoin on Coinbase and Binance.
Following Sam Bankman-Fried’s FTX’s lowest since 2022’s decline, the premium has recovered, signaling rising demand for Bitcoin from U.S. investors.
Joe McCann, CEO of Miami-based crypto hedge fund Asymmetry, noted that ETF issuers primarily trade with Coinbase, meaning demand for ETFs affects premium or discount rates.
Key support levels under scrutiny
Bloomberg emphasizes that the market looks forward to 2025 Bitcoin’s path will depend heavily on Trump’s dedication to it Crypto-Related CommitmentsInclude National Bitcoin Reserve.
Still, doubts remain about whether the current rally can be sustained. A recent MLIV Pulse survey showed that 39% of participants believe Bitcoin will be the investment most susceptible to losing money in 2025, the highest proportion of all choices.
Regarding technical analysis, market expert Morecryptoonl point out Bitcoin has formed a more pronounced five-wave pattern, and a bearish outcome is still feasible if certain support levels are broken.
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Currently, the second wave needs to maintain support, while the first wave is technically over, but is expected to reach as low as $100,800. crucial support area A range of $93,144 to $96,554 has been identified and may be tested after the first wave verifies its peak.
Regarding the Bitcoin ETF, Glassnode asserts that the buying trend remains strong due to seasonal effects. As Inauguration Day approaches, market analytics firm expect Increased buying activity by traditional financial investors may further affect Bitcoin’s price movements.
As of writing, BTC has fallen back to $101,888 levels but is still rising significantly across all time frames.
Featured images from DALL-E, charts from TradingView.com
