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Bitcoin Nears $100,000, Experts Warn of Potential Pause

Crypto

Bitcoin, Implications, Singapore, Administration

Business Honor
25 November, 2024

Bitcoin stabilizes after approaching $100,000 as traders evaluate Trump’s pro-crypto policies and market optimism

Bitcoin steadied after a brief surge toward $100,000, losing momentum as traders gauge the implications of President-elect Donald Trump's pro-crypto tone for the digital asset's future. On Sunday, Bitcoin shed to $95,776, just shy of the $100,000 milestone it hit on Friday. It rebounded to $97,550 on Monday morning in Singapore after Trump's choice of hedge fund chief Scott Bessent for secretary of the Treasury provided a boost to market sentiment globally.

Experts have suggested that Bitcoin must stage a pause upon testing the level of $100,000. Matt Maley, chief market strategist at Miller Tabak + Co, said that the bullish sentiment around Bitcoin has reached extreme levels. The majority in the market consider Trump's administration as a positive factor for cryptocurrencies promising more favorable regulations and even plans for a national Bitcoin reserve. Its timeline and feasibilities, however still remain unclear.

The overall value of the digital asset market has increased by nearly $1 trillion since Donald Trump's election on November 5, raising Bitcoin's latest levels of optimism. Still, some market analysts believe that the cryptocurrency could see brief consolidation before breaking above the $100,000 level. According to David Lawant, head of research at crypto prime broker FalconX, "There is rising selling pressure as bitcoin approaches the psychologically important mark, which may suggest price stabilization."

Additionally, discussions between Cantor Fitzgerald LP and Tether Holdings Ltd over a Bitcoin-backed lending program also point to increasing demand for crypto. Yet another main figure of Trump's transition team is Cantor CEO Howard Lutnick.

While many consider Bitcoin overbought, some analysts view the recent pullback as small, with prices remaining at levels seen earlier in the week.