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Despite a brief correction towards the $91,000 mark on Tuesday, which represented a 7% drop from its all-time high of $99,500, the market’s leading crypto, Bitcoin (BTC), has regained the strength it has posted over the past three weeks since Donald Trump’s election, on its way to the $100,000 milestone.
Coinbase, Robinhood, And MicroStrategy All Post Gains
In the 24-hour time frame, Bitcoin recorded gains of nearly 5%, regaining the $96,100 level as a key to reach a new record high in the last days of the month.
This bullish price action was expected by experts and analysts throughout the year as a normal upward behavior during Halving cycles, further boosted by Trump’s crypto agenda, which notably include making BTC a strategic reserve for the US.
This week marked a notable divergence, as Bitcoin decoupled from the tech-heavy Nasdaq Composite, which fell by 1%. According to CNBC data, the Dow Jones Industrial Average and S&P 500 also experienced declines, yet Bitcoin managed to maintain its upward trajectory.
This strength was reflected in the performance of crypto-related stocks, with US-based crypto exchange Coinbase (COIN) up more than 5%, Robinhood (HOOD) up 4%, and MicroStrategy (MSTR) up 10%.
Bitcoin Enters ‘Uncharted Territory’
In addition to the bullish outlook provided by the data and figures recorded over the past three weeks in crypto prices, market analysts are optimistic about Bitcoin’s future, with Alex Thorn, head of research at Galaxy Digital, claiming that “the Bitcoin bull market has legs.”
Thorn acknowledges the possibility of corrections and “regulatory jitters” stemming from the outgoing Biden administration but believes that increasing adoption from institutional, corporate, and potentially nation-state entities will drive Bitcoin’s price higher in the near to medium term.
Katie Stockton of Fairlead Strategies also highlighted that Bitcoin investors are currently in “uncharted territory” regarding resistance levels, meaning there are few historical price points to indicate potential pullbacks. Support is identified around $74,000, suggesting a solid foundation for future growth. Stockton further claimed:
Bitcoin does tend to stair step both to the downside and to the upside, meaning that it sees these very sharp runups and then consolidates. People should … be willing to give Bitcoin, and the cryptocurrencies in general, more room because of the volatility there and also because of the long-term potential.
With a year-to-date gain of 124%, Bitcoin remains on track to cross the $100,000 threshold before the end of the year. By comparison, Ethereum (ETH), the second largest cryptocurrency, has also performed well since the election but lags behind BTC with a year-to-date gain of 55%.
Featured image from DALL-E, chart from TradingView.com
