However, after reaching the record high of $89,956 on Tuesday, Bitcoin saw some profit-taking on Wednesday. As of 12:32 pm, the cryptocurrency was trading 3% lower at $86,740.
“This marks the first downturn since Trump’s recent victory, which initially sparked market optimism. Despite this minor setback, analysts remain optimistic about Bitcoin’s future. The recent volatility is attributed to investor profit-taking, broader market dynamics, and economic uncertainties,” said Shivam Thakral, CEO of BuyUcoin.
Crypto Tracker
Can Bitcoin break the $100,000 barrier before year-end? Here’s what crypto experts sayAlankar Saxena, Co-founder of Mudrex
The growing momentum suggests that Bitcoin could breach the psychological $100,000 barrier before the year ends, marking a significant milestone for the asset, said Alankar Saxena, Co-founder of Mudrex.
Alankar stated that one of the major factors behind Bitcoin’s rise is the increasing inflow into Bitcoin Spot ETFs, which have seen nearly $2 billion in net inflows in just a week since the election. These ETFs offer a more accessible way for institutional investors to gain exposure to Bitcoin without directly holding the asset, contributing significantly to Bitcoin’s price growth. As more institutional funds flow into ETFs, this trend is expected to fuel the next leg of Bitcoin’s rally, propelling it toward the $100,000 mark.
Bitcoin’s technical momentum is also a key driver of its ascent. The Fear & Greed Index is currently in “Extreme Greed” territory, indicating high market confidence and strong buying enthusiasm.
“Bitcoin has been trading near the upper bands of the Bollinger Bands, a signal of continued bullish pressure. Additionally, Bitcoin’s trading volume has surged, reflecting increasing participation from both retail and institutional investors. A significant increase in long positions on Bitcoin futures, which have surged to $2.8 billion at the $90,000 price level, further indicates the strength of Bitcoin’s rally,” Alankar said.
“Bitcoin’s price remains well-supported at around $75,600, which suggests that it has a solid base for further gains. If the current momentum continues, Bitcoin could quickly move towards the $90,000 level, setting it on track for the $100,000 milestone before the end of 2024,” he said.
Ryan Lee, Chief Analyst at Bitget Research
In the derivatives market, implied volatility (IV) in the options market is rising, with a short-term surge in BTC’s IV, making dual-currency investment products an attractive choice. The open interest in the futures market has increased by $900 million in the short term, suggesting that traders are betting on high volatility in the future.
Additionally, with the market capitalisation of stablecoins hitting a new high and fluctuating around $160 billion, there is room for significant leverage in the market, potentially pushing BTC to reach $100,000 within the next three months.
Also Read: Dogecoin surges over 10% after Trump names Musk, Ramaswamy to lead newly formed Department of Government Efficiency (DOGE)
Himanshu Maradiya, Chairman & Founder, CIFDAQ
Bitcoin hitting $100,000 is within reach, given its supply cap of 21 million and the recent break of its all-time high near $73,500 and hitting almost $ 90,000. Rising institutional interest, adoption growth, ongoing accumulation trends, and post-halving cycles point to a higher long-term valuation. While market conditions and regulatory clarity will play a crucial role, Bitcoin’s fundamentals and demand trends make six-figure prices plausible.
Also Read: At $1.7 trn m-cap, Bitcoin beats silver to become 8th largest asset in world
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)