Bitcoin’s rally to $100,000 on pace as the cryptocurrency hits new high
Bitcoin surged past the $99,000 mark for the first time on Thursday, fueled by growing optimism about a potential second Donald Trump presidency and its perceived benefits for the cryptocurrency sector. The flagship cryptocurrency was last up over 4%, trading at $98,273.50, after earlier touching a record high of $99,046.94, according to Coin Metrics.
Crypto’s golden age?
The rally reflects investor speculation that a Trump administration could usher in a more favorable regulatory landscape for crypto. Hopes include supportive policies, such as the creation of a national Bitcoin reserve, that could drive further institutional adoption.
“Looking back at previous moves of this magnitude, BTC has historically either gone into a consolidation period or ignored the overbought condition as investors pile in,” Rob Ginsberg, an analyst at Wolfe Research, noted. He added that Bitcoin’s recent breakout from a prolonged consolidation period suggests “the chase is on,” and the next major test will be the psychological $100,000 milestone.
Fueling the rally
The recent surge was triggered by increased activity in the futures market during Asia trading hours, with funding rates and open interest spiking while spot market premiums declined, according to CryptoQuant. Additionally, the sharp rise liquidated over $100 million in short positions within 24 hours, according to CoinGlass, further fueling upward momentum.
Bitcoin has been on a tear throughout 2024, posting gains of approximately 130% year-to-date. Analysts attribute this to broader market trends, including the potential for higher inflation and increased federal budget deficits under another Trump term, which could weaken the dollar’s dominance and bolster Bitcoin’s appeal as an inflation hedge.
$100,000 in sight
With Bitcoin’s performance this year already exceeding expectations, all eyes are now on whether it can break through the six-figure barrier — a feat that could redefine its role in global finance.
