Bitcoin rallied to a new high crossing $106,488 as investors fueled a surge driven by both political and monetary developments.
Bitcoin BTC $104 798 24h volatility: 2.6% Market cap: $2.07 T Vol. 24h: $85.08 B rallied to a new high on Sunday evening, crossing $106,488 as investors fueled a surge driven by both political and monetary developments. At the time of writing, the largest cryptocurrency was trading at $105,258, reflecting a 3.3% increase in market cap to $2.08 trillion. Meanwhile, the broader cryptocurrency market also saw a 2.7% rise in collective valuation, reaching $3.71 trillion.
The rally started soon after Michael Saylor hinted that MicroStrategy bought more Bitcoin over the weekend. This would mark the largest corporate Bitcoin holding firm’s first shopping above the $100,000 level.
Technical analysis signals Bitcoin’s bullish momentum, as the cryptocurrency continues forming higher lows, indicating sustained upward movement. Chart patterns indicate the development of a “bull flag,” which suggests further price appreciation could be on the horizon.
Adding to this optimism is the historical tendency for Bitcoin to perform well in December, a phenomenon often referred to as the “Santa Claus Rally”. Data from the past eight years indicates that Bitcoin has ended December in positive territory six times, with gains ranging from 8% to 46%, the latter recorded in 2020.
Political and economic factors have played a major role in the ongoing rally. President-elect Donald Trump’s victory in the November 5 election has reignited investor enthusiasm, especially with speculation about his administration potentially creating a federal Bitcoin reserve. Since the election results, spot Bitcoin ETFs have recorded a cumulative net inflow of $12.2 billion.
Additionally, companies like Riot Platforms and MicroStrategy have boosted the market by collectively purchasing billions of dollars worth of Bitcoin in recent weeks.
Another critical catalyst is the Federal Reserve’s expected interest rate cut during its two-day policy meeting ending Wednesday. Analysts project a 96% likelihood of a 25-basis-point cut, as per the CME FedWatch Tool. Lower interest rates often weaken the dollar and expand the money supply — two factors historically correlated with Bitcoin price increases.
Jeff Mei, COO of crypto exchange BTSE, shared his bullish outlook, stating:
“We think bitcoin still has tremendous upside potential and could easily hit the $125k mark by the end of 2025. While some say the upside has already been priced in over the last month or so, we think the rally is just getting started.”
While Bitcoin’s meteoric rise has captured headlines, some analysts urge caution. Popular trader Jason Pizzino pointed out that search volume for Bitcoin remains low despite its value attaining new highs. “For this rally to sustain, we’ll need stronger volume and consistent closes above recent swing highs,” Pizzino stated in a recent YouTube video.
Whether Bitcoin sustains its bullish run or faces a correction, its recent performance has once again proven its allure as a transformative financial asset.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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With a background in finance and a passion for innovation, Anisha has been covering the ever-evolving world of crypto for over four years. Her deep understanding of the crypto market have made her a trusted source for analysis and news. Whether it's dissecting the latest trends or decoding whitepapers, Anisha is dedicated to bringing clarity to the world of digital assets.
