1 week Ago
And once again BTC is trading at values above $100K. At the time of this writing, December 12th, BTC is at $100,956.90 having risen by 3.
14% in the last 24 hours. This comes on the back of a rally that had seen Bitcoin hit a $101K level in early trading hours. This is its highest level since a two-day selloff plunged the digital asset to $94K levels.
Currently, Bitcoin current market cap stands at $1.99 trillion, along with 24-hour trading volume of $79.99 billion, its new rally boosted by positive macro fundamentals and technicals supporting further rally.
Inflation Data Boosts Bitcoin’s Rally Bitcoin’s latest shot above $100K came alongside the US inflation figures for the month of November. Analysts expected the inflation rate to be 2.7% higher year over year and core inflation to be unchanged at 3.
3% based on the Bureau of Labor Statistics. These figures have rising chances of the Federal Reserve decreasing interest rates in its next meeting. In the past, lower interest rates enhance liquidity which leads to the right environment for limited quality assets such as Bitcoin.
Fidelity analysts pointed out that the cryptocurrency performs bullish in such cases and this rally is not any exception. Political Developments and Pro-Crypto Sentiment This gain in Bitcoin has also been driven by positive political sentiments toward cryptocurrencies. After the American presidential elections, the President-elect Donald Trump has endorsed the cryptology industry.
Formerly a critic of BTC, Trump has now become an active supporter of cryptocurrency stating that the United States should become a center of concentration for such technologies. Some of the critical events are Trump appointing Paul Atkins, a member supportive of cryptocurrencies to chair the SEC after Gary Gensler, who steps down though infamous for enforcing strict measures against cryptocurrency related firms. Besides, Trump has invested in Bitcoin and made focused attempts towards expressing his support for the future NFTs.
Technical Analysis: What’s Next for BTC? Bitcoin is currently eying its technical high at $104,000 as a very significant resistance level. Getting beyond this level may open up even more ground for higher bulls as different analysts estimate the BTC/USD price targets at $120,000 and $130,000 by the end of January. BTC’s technical indicators remain bullish.
The asset is showing signs of having sustained recent selloffs while, at the same time, showing signs of buyer demand. Also, the market is still bullish as liquidity continues to improve and institutions continue to enter the market following the approval of spot Bitcoin ETFs early this year. But, the Bitcoin rally is not without some risks as will be explained as follows.
In the event BTC pulls back below the $100 K psychological level, then it would be a retest of lower support levels including $ 94,000 levels. Broader Implications for the Crypto Market Bitcoin’s resurgence above $100,000 underscores its resilience and growing role as a macroeconomic hedge. The cryptocurrency’s ability to react positively to inflation data and political developments highlights its maturation as an asset class.
Furthermore, Bitcoin’s performance could have a ripple effect across the broader crypto market, driving increased adoption and investment in digital assets. Conclusion As Bitcoin reclaims its position above $100,000, the cryptocurrency market is abuzz with optimism. The combination of favorable macroeconomic conditions, pro-crypto political sentiment, and robust technical setups points to a promising start for Bitcoin in 2024.
Whether BTC can sustain its rally and achieve new milestones, such as $120,000 or $130,000, remains to be seen. For now, all eyes are on Bitcoin as it continues to defy expectations and solidify its status as the king of cryptocurrencies..
